Since Morgan Stanley CEO James Gorman said that he was going to lower compensation at Morgan Stanley, that has been the hot topic of conversation.Now, from CNBC’s Kayla Tausche, here’s another story that shows how serious this matter is to the industry.
Tausche reports that bond trading firm Cantor Fitzgerald has broken ties with ratings agency Moody’s after they downgraded the firm 2 notches from BAA3 to BA1.
Dig a little deeper though. Cantor said they broke with the ratings agency because they “disagree(s) with Moody’s take on certain compensation practices,” said Tausche.
Cantor will continue its relationship with other ratings agencies, like Standard & Poor’s.