Bonus Bait
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Morgan Stanley is planning to offer bonuses to brokers who expand their production in 2006. In mid-October, President Zoe Cruz told brokers in a broadcast meeting that “qualified brokers” would receive stock bonuses equivalent to 20 percent to 30 percent of the increase in their gross production, if that increase exceeds the retail brokerage increase by 10 percent to 20 percent, say top brokers. A Morgan spokeswoman confirmed that the firm has adjusted compensation “to reward revenue and asset growth based on total production,” but declined to offer further details. A description of the new incentive program will eventually be available on Morgan's Web site, she says. At least one Morgan broker isn't impressed with the new compensation plan. “It's not going to keep any brokers in their seats,” he says.
