Morgan Stanley announces revised bonus practices

As compensation on Wall Street continues to be hotly debated, Morgan Stanley has issued revised guidelines for paying its people.

Starting this year, executive compensation for Morgan Stanley employees will comprise three elements a base salary which is fixed, an annual bonus and a long-term performance-based compensation. The investment bank did not outline how incentive compensation will be divided between the latter two components.

Morgan Stanley says its new multi-year performance plan ties stock awards to the company's performance over a three-year period. This is presumably intended to reduce the incentive for employees to focus on the creation of short-term shareholder value. Performance will be measured by metrics which include both financial ratios and performance...