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

    WAMU 88.5

    Kate Mulgrew: "Born With Teeth" (Rebroadcast)

    Kate Mulgrew, who stars as "Red" in the Netflix TV series "Orange Is The New Black", opens up in a new memoir about her complicated family and the baby she gave away for adoption as a young woman.


    Swapping The Street For The Orchard, City Dwellers Take Their Pick Of Fruit

    Urban foragers don't just pick their meals from the trash; many eat only the finest, freshest produce — picked from city trees. The League of Urban Canners harvests fruit from trees to make jam.

    Reconsidering The Pilgrims, Piety And America's Founding Principles

    Conservatives who want to emphasize America's Christian roots embrace the story of the Pilgrims and the Mayflower Compact. But some historians say their role in the country's founding is overstated.

    From Takeout To Breakups: Apps Can Deliver Anything, For A Price

    Convenience is at an all-time premium — and a lot of smartphone apps promise to make many of the things we do every day easier. In a time-crunch or sheer laziness, how far will the apps take us?

    Leave a Comment

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