Wall Street firms will likely reduce bonuses rather than cut jobs to control expenses this year,...

|By:, SA News Editor

Wall Street firms will likely reduce bonuses rather than cut jobs to control expenses this year, says Morgan Stanley's Betsy Graseck. Compensation will probably drop from a year ago as banks attempt to avoid further headcount reductions after culling their ranks heavily last year, with most of the cuts coming from employee bonuses rather than base salaries. And bonuses, as we all know, represent a disproportionately large percentage of the income for Wall Street professionals.