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Bonus Watch ’13: Jim Gorman Gives Employees The Option To Either Take Their Bonus In Three Easy Installments

Since taking the reins at Morgan Stanley in 2010, CEO James Gorman has guided the firm with a managerial style that boils down to telling people, more or less: You’ll get it when you’ve earned it, “it” being anything from personal space to money to his respect. On the point of compensation, last year he told employees complaining about what they were paid to either open a newspaper and get over themselves or do everyone a favor and quit. Today brings news that this year, he’s doubling down on that mandate and daring anyone to make something of it.

Morgan Stanley is deferring 100 percent of the bonuses for high-earning employees, according to three sources familiar with the situation. The deferral applies to all employees, except for financial advisers, who make more than $350,000 annually and whose bonuses are at least $50,000, one of the sources said. The deferred bonuses will be paid out over a three-year period. Employees who make less than $350,000 annually and whose bonuses total less than $50,000 will receive their cash bonuses in February, the source said.

Don’t spend it all in one place.

Exclusive: Morgan Stanley to defer bonuses for high earners – sources [Reuters]

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23 Responses to “Bonus Watch ’13: Jim Gorman Gives Employees The Option To Either Take Their Bonus In Three Easy Installments”

  1. Bandersnatch says:

    I hope it's indexed to MS stock to take the sting out of the announcement.

  2. Clark G., MS MD says:

    Hey! If any of you are looking for any last-minute gift ideas for me, I have one. I'd like John Gorman, my boss, right here tonight. I want him brought from his happy holiday slumber over there on Broadway with all the other rich people and I want him brought right here, with a big ribbon on his head, and I want to look him straight in the eye and I want to tell him what a cheap, lying, no-good, rotten, four-flushing, low-life, snake-licking, dirt-eating, inbred, overstuffed, ignorant, blood-sucking, dog-kissing, brainless, dickless, hopeless, heartless, fat-ass, bug-eyed, stiff-legged, spotty-lipped, worm-headed sack of monkey shit he is! Hallelujah! Holy shit! Where's the Tylenol?

  3. Guest says:

    "taking the reins", or "starting his reign", or even "making it rain". (Totally blaming Shazzer for screwing up his proof reading duties here).

  4. Dennis K. says:

    Hmmmm . . . interesting. It might even fit!

  5. Geicopiggy says:

    Wow…. At least I got a used 93 civic….

    -ubs master of the car lot

  6. MSucks says:

    Well, this blows… look forward to 2016. I am miserable, San Diego!

  7. adddf says:

    This Reuter reporter need a high school math.

    What's about folks who earn less than 350k and whose bonus is more than $50k?

  8. Futurist says:

    Morgan Stanley, the 21st Century UBS?

  9. salley says:

    They are not dumb. They are doing this to get past the UK tax change uproar that GS saw when it said it was delaying bonus. Delaying bad, deferring good. Same result, but politicians do not know that

    • Guest says:

      Yeah, only problem with this apparently is that if you get fired or leave voluntary within the next 3 years, you lose whatever bonus is left to be paid out…oops!

      Gorman is really giving people an option here: "Think you don't get paid enough, then feel free to leave. Oh wait, if you leave, you won't get paid at all." John Mack would be proud.

  10. John says:

    I think they are doing it because they DO NOT HAVE THE CASH TO PAY. This way people do not realize how bad of shape they are, and they look good because they are screwing the employees. They couldn't afford to pay cash bonus if they wanted. Lucky the congress is playing right into their hands

  11. Shanghai MS Employee says:

    Today is comp day here, some people got a positive while many got zero and a few got negative.

  12. Peter says:

    negative must be base pay cuts

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