Morgan Stanley, Citigroup Inc and Credit Suisse Lead Wall Street Curbing Pay and Changing Formulas to Limit Expenses

As reported by bloomberg, Morgan Stanley (MS), Citigroup Inc. (C) and Credit Suisse Group AG (CSGN) made some of the year’s biggest cuts in compensation for investment bankers, averaging as much as 30 percent, as Wall Street firms grappled with lower revenue. A table summarizing changes in compensation appears below.

Morgan Stanley, owner of the world’s largest brokerage, will also cap cash awards and defer more payouts, people with knowledge of the plans have said, while Zurich-based Credit Suisse (CS), Switzerland’s second-largest bank, plans to give a portion of senior employees’ bonuses in bonds backed by derivatives. New York-based Citigroup may cut some bonuses in the securities and banking unit as much as 70 percent.

Wall Street firms are curbing pay and changing formulas to limit expenses, with some giving more stock and less cash. Revenue shrank last year as mergers and trading slowed, turning financial stocks into 2011’s worst performers in the Standard & Poor’s 500 Index. Recipients may find they do better with shares instead of cash, according to Paul Sorbera, president of Wall Street executive search firm Alliance Consulting.

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One response to “Morgan Stanley, Citigroup Inc and Credit Suisse Lead Wall Street Curbing Pay and Changing Formulas to Limit Expenses

  1. It’s a shame we can’t recover some of the ill gotten booty received by Chuck Prince, Sallie Krawcheck and the other execs at the time who were all sharing in the huge bonuses produced by profits on the sub-prime.

    When former chief executive Chuck Prince said in mid-2007 that, “while the music’s playing, you’ve got to get up and dance… and we’re still dancing”, he clearly didn’t foresee the finale.

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