Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Morgan Stanley Plans Reducing Senior Pay 20-30%: Bloomberg

RELATED NEWS
Trade MS now with 

Morgan Stanley (MS: Quote) is reducing pay for senior investment bankers and traders by an average of 20 to 30 percent for 2011, Bloomberg said citing people with knowledge of the decision.

The pay cuts will reportedly affect employees on the executive director level and above.

The investment banking giant's decision is said to be part of it effort to curb mounting compensation costs. Earlier this week, reports said that the company is planning to reduce employee bonuses sharply and to restrict cash payouts to $125,000.

The company also intends to defer payout for 2011 to as far as the end of this year, after a quarter saw weakness in trading and investment banking businesses in general.

On Thursday, Morgan Stanley reported a loss for the fourth quarter, reflecting a $1.7 billion settlement with bond insurer MBIA Inc. to resolve lawsuits related to credit default swaps and a 40 percent drop in investment banking revenues. Investment banking revenues dropped 40 percent to $1.05 billion, while trading revenues grew by 13 percent to $969 million.

Financial services firms in general have suffered in terms of trading and investment banking revenue in the fourth quarter. JP Morgan Chase & Co. (JPM) last week reported a 30 percent fall in investment banking revenue.

Goldman Sachs Group, Inc. (GS) also reported a 56 percent decline in profit for the fourth quarter, reflecting a drop in investment banking revenue due to the weak capital markets and Europe's ongoing debt crisis.

MS closed Thursday's regular trading at $18.28, up 5.36 percent on the NYSE.

Register
To receive FREE breaking news email alerts for Morgan Stanley and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
After moving modestly higher in morning trading, stocks showed a substantial move to the downside over the course of the trading day on Wednesday. The major averages pulled back well off their highs for the session, sliding firmly into negative territory. Ebola "czar" Ron Kain is scheduled to meet with President Barack Obama on Wednesday as he begins his efforts to coordinate the government's response to the deadly disease. Klain, who previously served as chief of staff to Vice President Joe Biden and then-Vice President Al Gore, was named as Ebola Response Coordinator last Friday. Potentially complicating the outlook for control of the Senate, the results of a SurveyUSA poll conducted for WXIA-TV in Atlanta suggest that the Georgia Senate race between Republican David Perdue and Democrat Michelle Nunn could be headed for a runoff.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.