Stop whining!
Morgan Stanley CEO James Gorman said bankers shouldn’t complain about lower bonuses as long as the industry remains in “the doghouse,” with its reputation sullied by the financial crisis and a seemingly endless stream of scandals.
“Until we can be really confident we’ve got discipline around the sandboxes, I think you have to be really careful not to be holier than thou,” Gorman said yesterday at a conference in New York hosted by the Securities Industry and Financial Markets Association.
He added: “We’re going to be in the doghouse for a while.”
His comments come as the Street braces for another round of lower bonuses.
Both Morgan Stanley and Citigroup are warning of relatively weak bonuses, with year-end payouts that are projected to fall as much as 25 percent across the sector.
As in recent years, some areas, such as fixed-income trading, will be harder hit than others, according to compensation experts and executives.
Citi, headed by new CEO Michael Corbat, who replaced ousted Vikram Pandit, reportedly plans on eliminating 150 jobs in trading and cutting bonuses by 10 percent.
Corbat, who is described as an operational-minded leader, is expected to further shrink the financial colossus by cutting staff and eliminating businesses, sources said.
More than four years after the financial meltdown, big banks continued to hit the reset button on bonuses. Tighter regulations, slumping revenue and public scrutiny continue to drive the crackdown on compensation.
While bankers are preparing for disappointment, bonus season is still a few months away. Most firms don’t hand bonuses until early next year for the 2012 calendar year.