Economic Slump: Morgan Stanley CEO gets lower bonus
The firm lost money in two out of four quarters and had trouble meeting profitability targets.
NEW YORK:
The Chief Executive of Morgan Stanley James Gorman was awarded a $10.5 million dollar bonus for 2011, which will be deferred over two to three years. The bonus, 25 per cent lower than last year, reflects Morgan Stanley’s weak performance in 2011 due to the euro-zone debt crisis and downgraded US bond ratings. The firm lost money in two out of four quarters and had trouble meeting profitability targets outlined earlier in the year. It has responded by capping cash bonuses for employees at a minimal $125,000 and cutting staff to maintain profitability.
Published in The Express Tribune, January 22nd, 2012.
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