Our founding persons probably would roll over in their graves at this one.
The unpopular “b” word on Wall Street—bonus—is now called a “retention payment or award.”
As the shaky Morgan Stanley and Smith Barney investment firms merge this year, their financial advisers will receive “very generous” retention dollars linked to 2008 performances.
MS co-president James Gorman had the gall to say:
“It is not a bonus. It is an award. It recognizes the importance of keeping our team in place as we go through this integration.”
Hey, if it acts like a bonus, sounds like a bonus and smells like a bonus, it’s a bonus.
All this while MS chief executive officer John Mack brags to Congress about the measures his firm has taken to rein in excessive compensation.
But wait. Don’t rush to judgment. This is actually an economic-stimulus plan--for suits. (1 MARCH 2009)
