Morgan Stanley, the sixth-largest U.S. bank by assets, is deferring 100 percent of bonuses for some senior bankers and traders over three years, according to a person briefed on the matter.
The deferrals apply to employees who have both total pay of more than $350,000 and bonuses of at least $50,000, said the person, who asked not to be identified because the plans hadn’t been announced. Mark Lake, a Morgan Stanley spokesman, declined to comment. Reuters reported the plan earlier Tuesday.
Morgan Stanley last year capped most cash bonuses at $125,000 as it seeks to tie employees to the firm and satisfy regulators’ demands for long-term incentives. Chief Executive Officer James Gorman, 54, has said banks need to balance rewards to employees with shareholder returns.
The deferred bonuses for affected employees will be paid 50 percent in cash and 50 percent in stock, said the person. Bankers will get a quarter of the cash in May, with another quarter coming in each of the following three Decembers, the person said. The stock will pay out over three years as well, with the first payment coming in December 2013.
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