The Financial Times reports that Morgan Stanley CEO James Gorman has said that the firm is preparing to wield the job axe again, and that employees should expect smaller bonuses as the investment bank attempts to boost shareholder returns.
In an interview with the newspaper, Gorman said: 'There’s way too much capacity and compensation is way too high. As a shareholder I’m sort of sympathetic to the shareholder view that the industry is still overpaid'.
In the meantime, Bloomberg reports that Credit Suisse has said it plans to cut 78 jobs at its main New York office.
The reductions will begin October 15th at the firm’s Madison Avenue location, the firm said Thursday in a filing with the state Department of Labor.
The $12.7bn fund that specializes in distressed-debt investing is eliminating 16 jobs after bringing in a consulting firm to review the New York-based fund's overhead, efficiency and expenses.
M Stanley chief warns on Wall St pay (subscriber content)