Bonus Watch '12: Morgan Stanley

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The good news: the waiting-- which is the hardest part!-- is over. The bad news: this year's bonuses.

From the front lines:

"Terrible across all divisions. FID, IBD, and even equities hard hit - lots of zeroes at junior levels. Lots of deferred cash and stock for more senior people."

And:

"Demoralizing is best word to describe bonuses this year. Many 0's, average seemed to be down 20-30% YOY** in S&T for VPs/EDs. Brutal day."

Having said that:

"I would say that expectations were set lower and lower until mgmt would be able to exceed them, which they did, slightly. I have to imagine anyone VP or lower who was hired less than 12 months ago got a zero... as should have been expected. Anyone else who got a zero should take it as a sign that they should leave, except maybe in FID, where they just did a shitty job."

**Update: Bloomberg has heard the same thing.

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