Bad News Bonus

It has recently been announced that Morgan Stanley will, once again, defer additional compensation this bonus season.

"Morgan Stanley is deferring 100 percent of the bonuses for high-earning employees, according to three sources familiar with the situation. The deferral applies to all employees, except for financial advisers, who make more than $350,000 annually and whose bonuses are at least $50,000, one of the sources said. The deferred bonuses will be paid out over a three-year period. Employees who make less than $350,000 annually and whose bonuses total less than $50,000 will receive their cash bonuses in February, the source said."

Perks being cut across the Street are nothing new these days. What do you guys think? Worth it?

http://dealbreaker.com/2013/01/bonus-watch-13-morgan-stanley-is-going-t…

10 Comments
 

It may annoy employees but it will benefit the firm over the long run. I doubt they will lose anyone because of it.

 

Bonuses are up across the board this year... Who cares if they are deferred? They are just trying to avoid paying taxes.

I would definitely wait 2 months for 5% more money. Shit, if Bill Ackman can't return 5% in 2 months, no one can.

 
BTbankerBonuses are up across the board this year... Who cares if they are deferred? They are just trying to avoid paying taxes.

I would definitely wait 2 months for 5% more money. Shit, if Bill Ackman can't return 5% in 2 months, no one can.

There are many investors that can generate a larger return than bill ackman.

 
BTbankerWho cares if they are deferred? They are just trying to avoid paying taxes.
My friends from Lehman certainly cared that a large portion of the bonuses were deferred in Lehman stock.
 
BTbankerBonuses are up across the board this year... Who cares if they are deferred? They are just trying to avoid paying taxes.

I would definitely wait 2 months for 5% more money. Shit, if Bill Ackman can't return 5% in 2 months, no one can.

I agree, I'm happy to wait and get the full amount, I'm not gunna lose my job any time soon.

 
Blink
BTbankerBonuses are up across the board this year... Who cares if they are deferred? They are just trying to avoid paying taxes.

I would definitely wait 2 months for 5% more money. Shit, if Bill Ackman can't return 5% in 2 months, no one can.

I agree, I'm happy to wait and get the full amount, I'm not gunna lose my job any time soon.

really? you're not losing you're job any time soon? are you unemployed or something? do you work for the government? i'm confused.

and isn't it 4 payments over 3 years? what's the PV? probably shitty.

 

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