Morgan Stanley Will Limit Cash Bonuses To $125,000 | WAMU 88.5 - American University Radio

NPR : News

Filed Under:

    Morgan Stanley Will Limit Cash Bonuses To $125,000

    The employees of Morgan Stanley, owner of the world's biggest brokerage, will receive a maximum cash bonus of $125,000, this year. As The New York Times puts it, the cap reflects "the difficulties that new financial regulations and the debt turmoil in Europe have posed to Morgan Stanley and its rival firms."

    And with tongue firmly in cheek, it also notes that the bankers "may want to put their kitchen renovations off until next year."

    Now, the cap only affects the cash bonus. The Financial Times reports the total amount will likely be "significantly lower" and it means that employees will see a higher percentage of their annual bonuses go toward deferred cash and stocks.

    The Wall Street Journal, which first reported the story, said the brass will take a bigger hit. Members of Morgan Stanley's operating committee — including CEO James Gorman — will not get any immediate cash.

    Trying to put the cap in context, the Times says that most bankers receive most of their compensation through bonuses, so $125,000 is a "pittance" for those accustomed to a seven-figure check. The Times reports:

    "Among the things $125,000 won't buy: a Ferrari 458 Spider (which retails for $257,000), a high-end Patek Philippe watch (which can be had for $216,7200) or a year's worth of maintenance fees and taxes on a penthouse apartment at 15 Central Park West.

    "Of course, to those in industries unaccustomed to large year-end bonuses, even the paltriest Wall Street bonus would rank as a princely sum."

    Copyright 2012 National Public Radio. To see more, visit http://www.npr.org/.

    NPR

    A Short List Of The Best 'Longform' Journalism Of 2014

    Editors at Longform read hundreds of print and online journalism pieces each year. Co-founder Max Linsky talks to Audie Cornish about highlights from 2014, from literary stalwarts and upstarts alike.
    NPR

    Nutmeg Spice Has A Secret Story That Isn't So Nice

    Nutmeg is a feel-good holiday spice. But it once caused serious bloodshed and may have even been a reason the Dutch were willing to part with Manhattan in the 1600s.
    WAMU 88.5

    Special Prosecutors Should Handle Civilian Shootings By Police, Holmes Norton Says

    Norton says mayors and governors could stem anger over civilian shootings by police by appointing special prosecutors to handle them.
    NPR

    2014 Hashtags: #MuslimApologies Grew Out Of Both Anger And Whimsy

    Maha Hilal helped launch #MuslimApologies partly as a rebuttal to the more earnest hashtag, #NotInOurName. She tells Audie Cornish how it reflects a divisive conversation in the Muslim community.

    Leave a Comment

    Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.