Morgan Stanley Said to Reduce Senior Banker Pay 20% to 30%

Morgan Stanley is reducing pay for senior investment bankers and traders by an average of 20 percent to 30 percent for 2011 as it seeks to curb mounting compensation costs, people with knowledge of the decision said.

The cuts affect employees on the executive director level and above, one of the people said, declining to be identified because the pay policy isn’t public. Some bankers were informed this week, two of the people said.