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]

Comments (23)

  1. Posted by Bandersnatch | January 15, 2013 at 4:15 PM

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

  2. Posted by Clark G., MS MD | January 15, 2013 at 4:19 PM

    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. Posted by Cherry | January 15, 2013 at 4:25 PM

    Dont' sugar coat this. Tell us how you really feel.

    - MS Sensitivity Councelor

  4. Posted by Guest | January 15, 2013 at 4:41 PM

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

  5. Posted by Guest | January 15, 2013 at 4:48 PM

    Try harder to be alive in the 90s and spell

  6. Posted by Guest | January 15, 2013 at 4:59 PM

    John = James's pseudonym? life partner? pet hamster?

  7. Posted by Dennis K. | January 15, 2013 at 7:52 PM

    Hmmmm . . . interesting. It might even fit!

  8. Posted by Geicopiggy | January 15, 2013 at 9:38 PM

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

    -ubs master of the car lot

  9. Posted by Sir guest | January 15, 2013 at 9:56 PM

    He's British. Don't take offence, they just have a different sense of humour.

  10. Posted by MSucks | January 15, 2013 at 10:03 PM

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

  11. Posted by Guest | January 16, 2013 at 7:26 AM

    Like.. barely alive was enough for me.

    '91, Maternity Ward, Columbia Preysbaterian University Hospital

  12. Posted by adddf | January 16, 2013 at 9:59 AM

    This Reuter reporter need a high school math.

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

  13. Posted by Futurist | January 16, 2013 at 10:44 AM

    Morgan Stanley, the 21st Century UBS?

  14. Posted by salley | January 16, 2013 at 8:45 PM

    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

  15. Posted by John | January 16, 2013 at 8:46 PM

    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

  16. Posted by Guest | January 17, 2013 at 8:51 AM

    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.

  17. Posted by Shanghai MS Employee | January 17, 2013 at 9:01 AM

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

  18. Posted by Confuzzled | January 17, 2013 at 10:48 AM

    "got negative" ?? Please define.

  19. Posted by Peter | January 17, 2013 at 12:03 PM

    negative must be base pay cuts

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