Morgan Stanley To Cut Senior Banker, Trader Pay 20-30%

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Bloomberg is reporting that Morgan Stanley will cut senior banker pay by 20-30%:

Morgan Stanley is reducing pay for senior investment bankers and traders by an average of 20 per cent to 30 per cent for 2011 as it seeks to curb mounting compensation costs, people with knowledge of the decision said.

The cuts affect employees on the executive director level
and above, one of the people said, declining to be identified
because the pay policy isn’t public. Some bankers were informed
this week, two people said.

This comes on the back of news that Morgan Stanley was capping cash bonuses at $125,000 and providing any additional compensation on a deferred basis or in equity.