Morgan Stanley is deferring 100 percent of the bonuses for high-earning employees, according to three sources familiar with the situation.
The deferral applies to all employees, except for financial advisers, who make more than $350,000 annually and whose bonuses are at least $50,000, one of the sources said. The deferred bonuses will be paid out over a three-year period.
Employees who make less than $350,000 annually and whose bonuses total less than $50,000 will receive their cash bonuses in February, the source said.
Mark Lane, a Morgan Stanley spokesman, declined to comment on the matter.
The deferral comes about a week after the company began a deep round of cuts that will slash 1,600 jobs , accounting for 6 percent of its support work force, and 6 percent of institutional securities.