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Morgan Stanley Caps Bonuses After Scrutiny

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  • Description

    FBN’s Charlie Gasparino on Morgan Stanley’s decision to cap its cash bonuses.

  • Duration 2:39
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-- a much thank you -- I'd also to share this year -- below bonuses on Wall Street -- but won't firm is on the extra scrutiny for having the highest compensation ratio.

Morgan Stanley raising some eyebrows and you have perhaps getting some push back Charlie Gasparino has the exclusive date 2000 is on the telephone with -- story -- I don't wanna show you how much and -- Well we should (%expletive) -- fearful of the -- -- -- I mean here's what we know and it's a kind of interest stories you know those that -- announcement last week shook up Wall Street coming out of Morgan Stanley.

-- cash bonuses that -- 125000.

Dollars a year they think cutting overall bonuses.

And and also.

Forcing executives take more than -- -- deferred and deferred equity it was really interest being.

And this is what we know initially it came after extensive meeting.

Between regulators and CEO James Gorman.

Over Morgan -- very high compensation ratio.

52%.

Goldman Sachs is number two -- 42 JPMorgan.

And is there a 29 EC direct Citigroup -- Bank of America all of much load of Morgan Stanley.

And backed court regulators are right now why does that -- regulated -- out of Dodd-Frank.

They're all these laws and rules that regulators don't want firms to take excessive risk by.

They think if you pay people more that's an incentive to take a lot of risk so they look at these ratios very closely.

-- -- out -- tried to explain listen.

Our comp ratio of revenues to comp is higher as we have more brokers guess what brokers bring in revenue and take -- chunk of that revenue as their compensation.

So of course we're gonna have more revenue -- to compensation.

I'm not sure what I talked to people from boy -- to inside Morgan Stanley they're not sure they really convince regulators and -- -- After those conversations.

Morgan Stanley came out with is pretty -- risks.

-- not cutting debt cutting compensation.

And I'll tell you.

You know we were talking to people last week it really heard people inside that February you know we would do weird stories of people cried in debt terms and so lock themselves in the opposite and -- boy I mean you know wasn't quite Harry -- over -- but it was pretty.

It was pretty bad I -- is -- bottom line.

-- guys gals get most of their compensation.

Europe and in the -- bonus -- a price cut back dramatically.

And it's likely to be cut back more as you know as regulators implement dot -- It was still not crying that much but I can -- -- -- is in your rising over the phone Charlie thank you so much appreciate think Goldman's getting ten million.

Edging down 23 million.

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