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!"
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