Morgan Stanley (MS) to Slash Bonuses Up to 30%

Morgan Stanley (NYSE: MS) has reportedly told some of its employees that investment banking bonuses may drop 10 percent to 30 percent, according to Bloomberg citing people familiar with the matter.

The sixth largest U.S. bank by assets has not set pay levels and will not make the information public until January. Managers at the firm are reportedly being told of the reduced pay levels and are setting up to decide on year-end bonuses.

Morgan Stanley CEO James Gorman has said that the bank plans to reduce the portion of its overall revenue awarded in compensation, which jumped to 62 percent. The bank's compensation pool has been cut through the first nine months of the year by 8 percent o $5.3 billion.

“Our long-term success depends on retaining the best people, and we are committed to paying competitively,” said Mark Lake, a Morgan Stanley spokesman.

Shares of Morgan Stanley are down 6 cents to $26.41 in midday market movement on Thursday.

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