Morgan Stanley, BofA Vow To Cut Back On Recruitment Bonuses

Morgan Stanley (NYSE:MS) and Bank of American Corp (NYSE:BAC) are looking to boost their margins by reducing recruitment and retention bonuses that became commonplace in the aftermath of the 2008 crisis. Morgan Stanley CEO James Gorman said that he expects to see brokers switch firms less often, and the head of BAC-owned Merrill Lynch, John Thiel, said that retention bonuses set to expire in two years will not be renewed, reports Zeke Faux for Bloomberg.

Morgan Stanley payment for compensation

It has become standard practice to pay high performing...