Article: Higher budgets, bonuses come to Morgan Stanley.(COMPENSATION)

MORGAN STANLEY ADVISORS ARE STILL waiting for Jim Gorman, formerly of Merrill Lynch, to come on board as their leader early next year. Meanwhile, they have received some good news from company President Zoe Cruz. On October 10, Cruz described some new perks in a conference call: higher bonuses and expense budgets for 2006. The move came just two months after 1,000 brokers were fired.

"Morgan Stanley has begun to recognize that it needs to do nice things to retain its big producers," says Mindy Diamond, president of the recruiting firm Diamond Consultants in Chester, N.J. "These plans, especially the tripling of some expense budgets, speak to this."

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