PHILADELPHIA (Reuters) - Investment bank Morgan Stanley plans to tell employees this week that bonuses will drop, with cash payouts capped for now at $125,000, The Wall Street Journal reported on Monday.
Similarly, Goldman Sachs Group Inc will cut 2011 bonus pay for its roughly 400 partners at least in half compared with 2010 levels, the newspaper said.
Some top Morgan Stanley executives will receive nothing now, deferring their 2011 payouts until the end of this year. Morgan Stanley will defer the portion of any bonus above $125,000 until December 2012 and December 2013, the newspaper said in its online edition.
Chief Executive James Gorman and the other nine members of Morgan Stanley’s operating committee, will defer their entire bonuses for the year, but collect them at a later date, the newspaper said.
The roughly 40 people on Morgan Stanley’s management committee will see 85 percent of their bonuses deferred, the newspaper said.
For junior-level Morgan Stanley employees, only 25 percent or less of their overall bonus will be deferred. Employees who are paid less than $250,000 overall will not have bonuses deferred, the newspaper said.
Morgan Stanley could not immediately be reached for comment.
Reporting By Jessica Hall, Editing by Gary Crosse