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Morgan Stanley CEO James Gorman Threatens To Personally Fire Anyone Caught Leaking Bonus Information

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By its own estimation, Morgan Stanley's bonuses are set to suck this year. The best employees have been told to hope for is a year on year decrease of 10 to 30 percent. And for his own part, chief exec James Gorman has been fairly vocal about the need for Wall Street to get to a place where failure isn't rewarded isn't rewarded as richly as success. Since some of Morgan Stanley's business have not exactly succeeded with flying colors this year, it should follow that their staff will be compensated accordingly. Perhaps anticipating that there will be some unhappy campers, Jim has suddenly decided that while it's no secret most people's pay will be in the toilet, which he supports, Morgan Stanley must suppress this information from the outside world. How is Gorman planning on going about enforcing the new rule? Brute fucking force.

Morgan Stanley Chief Executive James Gorman raised some eyebrows during a routine conference this week when he threatened to "personally escort" [out] anyone found leaking any details of the firm's compensation levels to the media. Gorman, who has been pushing hard to keep the lid on bonuses and has railed against the superstar mentality on Wall Street, unexpectedly read the riot act to about 500 managing directors during the usually staid year-end conference call, according to sources familiar with the call.

After catching our breath at the thought of JG approaching someone's desk and saying "Let's go, chief," one is reminded of a similar attempt by the bank to keep truth sharing at bay that went something like this:

...and of the fact that guess what, 'Stan? YOU CAN'T HIDE THE TRUTH! For those of you feeling as though you want to get something off your chests at some point over the next several weeks, perhaps something that starts with a 'b' and ends with a 'onus numbers,' rest assured that there are many ways for you to do so that will not result in an encounter with Mr. "I'll pull you out myself." In addition to emailingus (from your NON-WORK ADDRESS), they include:

- Calling us collect at: 212-334-1871
- Texting the DealBreaker Tips Line: 973-495-0177
- Meeting us in an alley of your choice
- Wild card

All of those methods are the utmost in secure. Having said all that, I think we can all agree it would provide some level of amusement to see the genteel Aussi get his gangster on and bust some skulls. If you'd like to offer yourself up so that others might enjoy such a scene, feel free to transmit the information to us in the least discreet way possible and we'll do our best to help you find a gig on the other side.


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

James Gorman Will Say Something Nice About Wall Street When Wall Street Earns It

If you're looking for a cheerleader, go bark up another tree. “Say you want to be out ahead of it and give a lot of speeches and talk about all the good we’re doing,” Gorman said today at an industry conference in New York. “And then some trader does some stupid thing like this guy at UBS did and he’s in jail and all bets are off,” Gorman said. He was referring to Kweku Adoboli, the UBS AG trader convicted of fraud this month in the largest unauthorized trading loss in British history...Traders at New York-based Morgan Stanley had too much latitude in the past, “what I call having an outsized sandbox,” Gorman, 54, said at the conference, which was sponsored by the Securities Industry and Financial Markets Association. “Until we can be really confident we’ve got discipline around the sandboxes, I think you have to be really careful not to be holier than thou,” Gorman said. “We’re going to be in the doghouse for a while.” Incidentally, this would a good time to mention that Gorman's bonus policy instituted last January-- STFU or GTFO-- still stands.