Oct. 18 - Morgan Stanley is paying a lower percentage of its net revenues in compensation as it trieds to cut back on hefty paychecks. Bobbi Rebell reports.
The daily digit today is 45 percent. This is the percentage of net revenue Morgan Stanley paid out to employees in the third quarter. It is down 4 percent from the second quarter, and down 6 percent from a year ago. But it's not a surprise. Earlier this month, CEO James Gorman told the Financial Times he was planning to reduce compensation. Overall Morgan Stanley reported better-than-expected adjusted quarterly earnings. Reuters Reporter Dan Wilchins: SOUNDBITE: DAN WILCHINS, REUTERS REPORTER (ENGLISH) SAYING: "On the wealth management side, they won advisors. The advisors are generating more revenue per head. And on the investment banking side, fixed income underwriting revenue was better; and fixed income trading revenue was better as well. And the fixed income trading has long been an issue for them. So it looks like they might be getting some of their problems behind them." The big caveat: because of a more than $2 billion accounting charge related to their debt- they company lost a $1 billion. Bobbi Rebell, Reuters