Here's Your Bonus, Now Wait Five Years to Spend It

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Employee bonuses at Morgan Stanley are set to be unveiled today, with Lehman Brothers set to follow soon, but chief executives' pay at both banks is already public knowledge.

After just five months in the chief executive's seat at Morgan Stanley, John Mack is in line for a bonus of a whopping $11.5m, while Richard Fuld at Lehman is on track for $14.5m.

The bad news for both men is their bonuses will take the form of restricted stock, for which vesting times can be as long as five years. By then the current banking boom could be history and the stock worth considerably less.

The question is whether everyone else in the industry will also find their ability to go out spending this year's bonus stymied by a hefty stock element. What do you think? Let us know.

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