STOCK MARKET WATCH - Friday, 27 January 2012

[Demeter]

2. Morgan Stanley CEO Says Pay-Cut Complaints Would Be ‘Naive’

http://www.bloomberg.com/news/2012-01-25/morgan-stanley-ceo-says-workers-complaining-of-pay-cuts-need-new-attitudes.html

Morgan Stanley (MS) Chairman and Chief Executive Officer James Gorman said employees understand why the investment bank had to cut pay, and those who don’t grasp the reasoning need to adjust their attitude.

“You’re naive, read the newspaper, No. 1,” Gorman said he would tell miffed employees, speaking in an interview on Bloomberg Television. “No. 2, 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. And No. 3, if you’re really unhappy, just leave. I mean, life’s too short.”

Morgan Stanley is reducing pay for senior investment bankers and traders by an average of 20 percent to 30 percent, people with knowledge of the decision said last week. The New York-based firm is also capping immediate cash bonuses at $125,000 as it defers a greater share of awards, a person briefed on the plan said.

“The world has changed and the banking industry has gone through a fundamental change, and we have to readjust,” Gorman said from Davos, Switzerland, where he’s attending the World Economic Forum’s annual meeting. “When we come out of this and we start re-performing, obviously compensation will reflect that. Until then, we have to respect the fact that shareholders have to get paid, too.”


WHAT IS THIS WORLD COMING TO? NEXT THING YOU KNOW, HE'LL BE TELLING THE WHIZ KIDS THAT THERE'S NO SANTA CLAUS, EASTER BUNNY, OR TOOTH FAIRY....MORE BAD NEWS AT LINK