The new terms are not decided, nor are they likely to go as far as Goldman Sachs, which announced it would pay top executive bonuses entirely in stock that could not be cashed in for five years, The Wall Street Journal reported Tuesday.
The deferred stock would allow the bank to retrieve bonus pay that was based on deals that did not pan out, the newspaper said.
One concept under consideration at Morgan Stanley is for the top 30 executives to have 65 percent of their bonus pay awarded in deferred stock, a system known as "clawbacks."
Banks -- especially the nation's largest banks -- have been highly criticized for doling out huge paychecks after accepting billions of dollars in taxpayer assistance to keep them solvent through a financial crisis they helped to create.
Morgan Stanley "clearly understands the extraordinary environment in which we operate and, as a result, have made a series of changes to the firm's compensation practices," Chief Administrative Officer Thomas Nides said.
Copyright 2009 by United Press International.
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