Morgan Stanley is doing a lot to keep exaggerated pay in check for top executives.
They have had financial problems - like everyone- but also because they hoped that hiring more people would create revenue growth. However, they hired 2,000 people and have seen little growth in revenue.
This prompted complaints from shareholders about high wage payout costs and led to these cut backs. Instead of laying off the newly hired, Morgan Stanley will cut back the pay and bonuses of top executives.
However, Morgan Stanley promised that the employees that did well will still receive competitive pay yet the workers that have not done so well this year will see a cut in their pay.
The firm hopes these moves will help them in the long run and in the eyes of stockholders.
It's interesting to see this type of move by large corporations to reign in their executive pay. It seems like its just a publicity move to me, but maybe publicity moves, in this type of polarized political culture, can lead to better marketing and very tangible gains.
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