Morgan Stanley staff 'should understand pay cuts'

26 January 2012

Professionals working for one of the biggest banks in the US must change their attitude if they do not understand why their pay is being cut.

That is according to James Gorman, chairman and chief executive of Morgan Stanley, whose organisation announced recently its intention to reduce remuneration for staff in its investment and trading division by between 20 and 30 per cent.

During an interview with Bloomberg, Mr Gorman said the vast majority of employees are aware this is a necessary step for the organisation to take and insisted those who do not grasp the reasoning are "naïve".

"If you put your compensation in a one-year context to define your overall level of happiness, you have a problem which is much bigger than the job," he noted.

Mr Gorman went on to state he would encourage anyone who is particularly unhappy with this development to leave the company as "life's too short".

By Gary Cooper

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