Morgan Stanley plans bonus cut

Morgan Stanley is planning to pay empoyees bonuses that are 10 to 30 per cent smaller this year, owing to volatile market conditions, it was reported last night. Several managing directors who oversee groups of employees have been informed of the bonus estimates, which are preliminary and subject to change in the coming weeks, one source said. The cuts are likely to hit traders and back office staff hardest, though the final figures won’t be revealed until January.