Morgan Stanley To Defer Less Of Employees' Future Bonuses, Take Charge

(RTTNews) - Morgan Stanley (MS) disclosed in a regulatory filing that On December 1, 2014, the Compensation, Management Development and Succession or 'CMDS' Committee of the Board of Directors approved an approach for awards of discretionary incentive compensation for the 2014 performance year to be granted in 2015 that would reduce the average deferral of such awards from an approximate 80% to an approximate 50% level.

Additionally, the CMDS Committee approved the acceleration of vesting for certain outstanding deferred cash-based incentive compensation awards (excluding awards held by the Company's executive officers and other Operating Committee members), such that those awards vested as of December 1, 2014.

The deferred cash-based incentive compensation awards subject to accelerated vesting will be distributed on their regularly scheduled future distribution dates and will continue to be subject to cancellation and clawback provisions.

With its business strategy in place and greater financial stability, the company said it is in a position to change the level of deferrals, making the Company's practice more consistent with deferral levels at the Company's global competitors.

Although 2014 compensation decisions have not yet been made, the impact of the changes could increase compensation and benefits expense by up to about $1.2 billion for the three-month period and full year ending December 31, 2014, the company said.

However, the amortization expense that would otherwise have been associated with the discretionary incentive compensation awards subject to these changes will not be reflected in future periods. As in past years, decisions on individual awards of discretionary incentive compensation for the 2014 performance year will be based on the performance of the Company, the division and the individual.