Abigail with attitude: Morgan Stanley a lone wolf on compensation?

Abigail Hofman
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Over in big bad bank land, the going remains tough. Morgan Stanley was the latest bank to announce big job losses. In January, the firm initiated 1,600 job cuts in addition to the large head-count cull that it undertook last year. Apparently, a large number of managing directors and executive directors will be shown the door in both the investment banking and trading areas. No one grieves when an investment banker loses his or her job. But what people are worrying about is a new compensation scheme that Morgan Stanley announced in mid-January whereby employees earning more than $350,000 in total whose bonuses were at least $50,000 would have 100% of their annual bonus deferred over three years. Lower disposable income on Wall Street affects numerous hangers-on lower down the food chain: think estate agents, car dealers, top-end tailors...