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    Layoffs/Bonus Watch ’12/13: Morgan Stanley

    Back in January, Morgan Stanley CEO James Gorman sent a simple messages to his employees, who had been grumbling about their pay: STFU or GTFO. “You’re naive, read the newspaper, No.1,” Gorman told Bloomberg he would say to any members of his staff that wanted to give him lip about their compensation to his face. “No. 2, if you put your compensation in a one-year context to define your over all level of happiness, you have a problem which is much bigger than this job. And No. 3, if you’re really unhappy, just leave.” Today, in an interview with the FT, Gorman reiterated his stance and added that in addition to reducing compensation for current employees, the bank will likely be drastically cutting pay for future analysts. If anyone has a problem with that, consider applying for a gig at Bank of Mythical Pre-Crisis Era Bonuses. Alternatively, Gorman is happy to discuss a compensation plan in which you’ll be awarded shares of his foot in your ass, which vest immediately.

    In the latest sign of the pressure Wall Street is under to cut costs and address high pay levels, James Gorman, chief executive, said that staff and remuneration would have to be sacrificed as banks cope with lower profits. “There’s way too much capacity and compensation is way too high,” Mr Gorman said in an interview with the Financial Times. “As a shareholder I’m sort of sympathetic to the shareholder view that the industry is still overpaid.”

    Morgan Stanley itself is already axing 4,000 jobs, 7 per cent of its workforce, by the end of this year. In the new year, Mr Gorman said, the bank will consider its next round of cost-cutting, including lower pay and bonuses. News of further pay cuts, including potentially for new entrants at the investment bank, comes just weeks after Goldman Sachs confirmed it was overhauling its well-known entry-level programme for analysts. Goldman was said to have tired of the number of analysts in the programme who left the bank for hedge funds. Mr Gorman said that Morgan Stanley will probably keep its own analyst programme, but pay could be reduced significantly.

    Morgan Stanley Chief Warns On Wall Street Pay [FT]
    Earlier: James Gorman To Employees: STFU Or GTFO

    / Oct 5, 2012 at 11:48 AM
  • I CAN'T TONIGHT I HAVE TO HELP RESCUE THE COUNTRY FROM THE WORST FINANCIAL CRISIS IN 80 YEARS! WELL I'M SORRY IF YOU REARRANGED YOUR PLANS Who asked you to do that?!

    Unintended Consequences Of Global Financial Crisis Included Barney Frank Being Put In The Doghouse

    Still, it soon became clear that dating a congressman was not like dating other men. Mr. Frank had just been appointed chairman of the House Financial Services Committee, where he played a central role in creating legislation to increase transparency in financial markets. Weekends in Maine turned into Washington sleepovers, with Mr. Ready eating takeout […]

    / Jul 10, 2012 at 4:42 PM
  • News

    Royal Bank Of Scotland Chairman Isn’t Gonna Sugarcoat Things Here

    Sir Philip Hampton said investors who owned RBS shares before its £45.5bn bailout in October 2008 were likely to be dead before the bank’s value recovered to anything close to its pre-crisis level. “I don’t think shareholders wealth is likely to be restored any time in my lifetime or some lifetimes beyond,” said Sir Philip, […]

    / May 30, 2012 at 3:36 PM
  • News

    James Gorman To Morgan Stanley Employees: STFU Or GTFO

    As you may have heard, bonuses were announced at Morgan Stanley last week and while some employees here and there did okay for themselves, for the most part, people were not pleased with the fact that pay was down, on average by 20-30 percent. In fact, many were downright distraught, particularly among those who received […]

    / Jan 25, 2012 at 1:27 PM
  • News

    Getting Facials Will Get You Further On Wall Street

    Today we’re going to talk about something really important: your beauty routines. What you do to look good, what buy to look better. Hard numbers re: what kind of coin you’re dropping on toners and moisturizers. Thinking about claiming you don’t use any of that crap? Let’s not play that game. You’re slathering $95 eye […]

    / Dec 22, 2011 at 12:17 PM
  • News

    As Head Of IMF, Christine Lagarde Would Take No Prisoners On This Greece Business

    There will be no Mrs. Nice IMF Chief.

    / Jun 28, 2011 at 12:58 PM
  • News

    Incensed Charlie Gasparino Tells Goldman, Lloyd, Lucas What He Really Thinks

    Catch Andrew Ross Sorkin’s column about Goldman Sachs this morning? Charlie Gasparino did and he didn’t like it. Noting Goldman Sachs’ desire not to make a big deal about the money it made correctly predicting the housing market crash, perhaps in an attempt not to attract anymore attention from Senator Carl “Goldman Sachs is a […]

    / Apr 19, 2011 at 5:09 PM
  • News

    Goldman Sachs Would Like To Remind Noted Thespian/Former Client Of A Few Things, And Vice Versa

    Earlier today actor Alan Cummings told New York magazine that he’d taken his money out of Goldman Sachs because he was disgusted with how they conducted themselves before during and after the crisis. Cummings knew writing to Lloyd Blankfein and telling the CEO how disappointed he was would accomplish nothing, and that the only way […]

    / Apr 15, 2010 at 5:15 PM

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