Can a big, bailed-out bank give its employees bonuses in cash this year and not incite public outrage?
Lloyd Blankfein didn’t think so, which is why he’s paying Goldman Sachs bonuses in deferred stock.
But John Mack is apparently willing to test public opinion. The Wall Street Journal reports that Morgan Stanley will shell out one-quarter of this year’s pay in cash. To offset that potentially incendiary news, the firm says it’s also tying compensation to long-term performance and to its share price compared to other firms.
If there’s fallout, it will be the first crisis for new C.E.O. James Gorman, who takes over January 1st.