Bonuses are bad, therefore according to Morgan Stanley, they've become awards
[Morgan Stanley's] JAMES GORMAN: I’m going to turn to a topic that I suspect is near and dear to everybody’s hearts, which is retention. There will be a retention award. Please do not call it a bonus, it is not a bonus it is an award. The award will be based on ‘08 full year production. Clearly it would have been cheaper to do it off ‘09 but we think it’s the right thing to do and we’ve made that decision.
Not bonuses, awards. Got that?
Let's see - an award based on 2008 production for Morgan Stanley, that would be, what? Well, you lost billions - so I'd say the production was zero. Unless you want to pitch in - I'd say you should be happy to still be working.
As in, You have a job - Bonus!
But what if the payments weren't based on performance?
Is there an angle there?
Call them Retention payments.
(via GOOD blog and Reuters)
Morgan Stanley and Citigroup Inc are preparing to pay $3 billion of retention awards to brokers to keep them from fleeing a brokerage joint venture, the Wall Street Journal said on Friday, citing people familiar with the matter.
I'm picturing banks throwing taxpayer money at employees who are about to jump out of a sinking ship. Doesn't really sound laissez faire to me.
They put the kaibosh on this - we can look forward to yet another new term for giving money to the well-heeled and undeserving.
Late edit: CJR points out a Bloomberg article that hits this topic, hard.
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