Morgan Stanley limits bonuses at $250k

17 January 2012

A major US bank has decided to restrict immediate cash bonuses issued to members of staff as it seeks to cut its outgoings in the wake of the recession.

Professionals at Morgan Stanley will receive no more than $125,000 on top of their basic salary under the lender's plans to reduce its pay awards and defer more compensation for senior officials, the Wall Street Journal reports.

A source within the company told the news source that people on its operating committee - including chief executive officer James Gorman - will not get any immediate awards.

These plans have been formulated due to the fact the financier endured one of its worst quarters since the onset of the global economic downturn in the final three months of 2011, the insider noted.

This comes after This is Money reported that the UK government is to restrict bonuses from the Royal Bank of Scotland to its investment bankers to a maximum of £2,000 ($3,000).

By Asim Shah