Morgan Stanley to change pay policies

Beginning next week, Morgan Stanley will change its pay policies to comply with a wage-and-hour lawsuit the firm settled last year. Morgan Stanley is picking up some state registration fees, paying for trading errors, and changing the pay and bonus system for sales assistants. No changes in payout grids will occur, said Jim Wiggins, a Morgan Stanley spokesman. December is the beginning of Morgan Stanley's fiscal year. Producers at Morgan Stanley are also getting an expense account they can use to pay for technology and sales assistant bonuses. The firm will be also be making a contribution to the expense accounts in the “2% to 5% range,” Mr. Wiggins said. Additionally, the firm is instituting base salaries for assistants, and brokers will be paid a minimum monthly salary as determined by local wage laws, Mr. Wiggins said. For the full report, see the upcoming Dec. 3 issue of InvestmentNews.