Morgan Stanley Taking Novel Approach to Bonuses

by Derek Loosvelt | November 19, 2010

If you don't produce, you get nada.

That's right, the firm is said to be handing out $0 bonuses to bankers "who have failed to deliver." In addition, sources cited by Financial News say that some Morgan Stanley employees are "going to get zero bonuses in the hope that they clear out and make way for upgrading in 2011."

Morgan Stanley's is certainly an unheard of approach on Wall Street, where even the lowest of the low typically pull down at least tens of thousands of dollars in end-of-the-year comp for their efforts. Even so, you can bet that others will follow the firm's lead.

More times than not, when one bank employs a cost-cutting measure involving its employees (such as a salary cut, perk reduction or, in this case, a slashing of bonuses), others follow suit, thinking, 'If they can jam this down the throats of their bankers and traders, then so can we!"

Filed Under: Finance


Reasons to be Thankful Day 5: Better Living Through Technolo Salaries: How Much is Too Much?

Vault welcomes your views. Please stay on topic and be respectful of other readers. Review our User Guidelines.

blog comments powered by Disqus

Featured Companies

Become a Vault Basic Member

Complete your Vault Profile and get seen by top employers

SALARY FINDER

SALARY FINDER

Health Service Administrator

  • $0
  • 25
  • 50
  • 75
  • 100
  • 100+
Yearly Salary Range (US$ Thousands)