Morgan Stanley CEO To Disgruntled Employees: 'If You're Really Unhappy, Just Leave'

The CEO of one of the country's largest investment banks has some choice words for any employees upset about the prospect of a smaller paycheck this year.

James Gorman, the head of Morgan Stanley, said that if his workers are so angry about their latest, trimmed-down paycheck, it's probably time for them to go. Gorman stands in contrast with many of his executive counterparts, who have largely stayed silent on the issue of declining compensation, despite an industry-wide restructuring.

"I say [to disgruntled Morgan Stanley employees], listen, you're naive, read the newspaper, number one," Gorman said in an interview with Bloomberg Television. "Number two, if you put your compensation in a one year context to define your overall level of happiness, you've got a problem that is bigger than the job. And number three, if you're really unhappy, just leave. Life's too short."

Morgan Stanley announced earlier this month that it would cap cash bonuses for 2011 at $125,000 and that its executives -- including Gorman -- wouldn't be getting any cash bonuses, according to The New York Times.

Gorman and his employees at Morgan Stanley aren't the only ones on Wall Street contending with smaller paychecks. Anxiety over the state of the global economy, slow dealmaking and a boost in public anger over the financial industry's high pay have likely pushed firms to slash their compensation pools to the lowest level since the 2008 financial crisis, the Wall Street Journal reports.

And that's for those that've kept their jobs. All told, Wall Street laid off more than 200,000 employees in 2011 alone.

"The world has changed and the banking industry has gone through a fundamental change and we have to readjust," Gorman said in the interview.

Many workers have had trouble coming to terms with the new reality. Bonus day at Goldman Sachs last week was a "bloodbath," one mid-level employee told CNBC, as some workers learned they would be taking home smaller bonuses this year -- and some none at all. In addition, the firm cut the pay of some if its senior workers in half.

Investment bankers at Bank of America also found out earlier this week that their compensation would be slashed by 25 percent. That's part of a larger push to cut total costs at America's second-largest bank by as much as $8 billion per year.

Comments

[FloB]

08:59 PM on 02/18/2012

So the "bonus" for doing a lousey job and ruining numerous lives is $125,000, about 5 times what an average American brings home. The salary is millions before the bonus. If the "smart financial wizards" can not manage to live well on that, they have no business managing the pension funds of people depending on a return from their hard earned money.

[sk8queen]

11:49 PM on 02/08/2012

I agree with the boss. The employees' problem is? *crickets*

[Kris79]

10:07 PM on 02/08/2012

Bonuses are an extra and if things are not going well, they should be smaller or non-existent. They have been rewarded for screwing up the U.S. economy for the last few years now and it is about time they feel the pinch. And these people should know how to manage their finances since they work in the financial industry...yet people complain about the poor and entitlements.

[the Radical 1]

04:02 PM on 02/08/2012

The Beast is starting to eat itself, get the popcorn ready this is going to be a blast to watch!!!

[Regal Royal]

08:07 AM on 02/02/2012

This is a lot of hot air and bluster from the CEO. I see people are saying that remuneration being commensurate to the level of ability and demand for that individual was an excuse to pay high salaries in the past, this is untrue especially in the case of Goldman Sachs. In 50 years time people will look back on the situation we find ourselves in and instead of the pay of the individuals being what shocks the most, it will be the fact that so many highly intelligent people were taken away from being productive and actually adding to the benefit of mankind. Have no doubt that the people at Goldmans are very intelligent and also amongst them are/were an Edison or a Graham Bell who instead of inventing something that changes the world for the greater good has come up with a new spin on a derivative product.

[earlsspg]

10:00 PM on 01/29/2012

Last year I got a 5% payrise because my company could afford it, this year there is no pay rise as the company finances cannot afford it, the way things are going , next year it might be a 10% increase as things are looking up.
If a company is making a profit, fine, share it around as my employer does, if the company makes a loss, no one should get a 'bonus'

[munki]

04:55 PM on 01/29/2012

Did not indicate CEO or Senior Executives pay????

[mmike1969]

04:06 PM on 01/29/2012

Funny! A one percenter telling off fellow 1 percenters!

[williams74ra]

12:46 PM on 01/29/2012

Cutting payrolls to increase profitability has been the mantra in the financial investment community. When it was blue collar jobs they thought it was a great idea, when it was everyone else they thought it was a great strategy.

Now, when the same strategy is applied to the investment sector, Wall Street etc. they think it's a bad idea. As some one else in these comment said "Karma is a b@tch".

[FreeSpeech4All]

01:19 AM on 01/29/2012

Wow. Wall Street has to institute austerity measures on their own? I thought I'd never see the day. Now maybe they'll get a taste of what the rest of us have had to endure after they crashed the economy.

[iphanie]

08:58 PM on 01/28/2012

Well done and well said Mr CEO!

[si1]

09:47 PM on 01/29/2012

all theater - for the sheeple until the election is over - obama has traded bank cooperation for money

[DiogenesOfAlaska]

06:23 PM on 01/28/2012

Well done. Next, tell the same to the shareholders: if you don't like our returns, just sell the stock.

[earlsspg]

10:01 PM on 01/29/2012

pmsl!! nice one!!

[Whats Inaname]

04:46 PM on 01/28/2012

This is directed at those in "Wall Street" who "mocked" the OWS protestors drinking champagne and put the sign degrading the OWS movement. Remember those signs on the windows? Yeah, the "We are the 1%". Karma is a bi@tch!

KARMA: "WHAT GOES AROUND COMES AROUND".

You all still laughing? Perhaps you should drink some more champagne and paste "We are the 1%" signs on your windows again.

[Carl Caroli]

03:33 PM on 01/28/2012

I really wish they'd all leave and leave this joker hanging. He can sweep the floors and swish out the toilet bowls too as far as I'm concerned.

[earlsspg]

10:03 PM on 01/29/2012

I wish the cleaner at my workplace would clean the toilets.

[Timma]

01:10 PM on 01/28/2012

Life's tough when you have to sit outside for your interview in your Ernie Bauer winter jacket among the gentle slopes of the Swiss Alps. What a terdbukit.