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FinancialAdvisor online magazine reported January 17, that Morgan Stanley, owner of the world’s biggest brokerage, is capping cash bonuses at $125,000 as the firm curtails pay and defers more compensation for senior executives.

Members of the company’s operating committee, led by CEO James Gorman, won’t get any immediate cash.

Morgan Stanley’s decision will increase the average amount of pay deferred to about 75 percent. (The firm deferred an average of 60 percent in 2010 and 40 percent in 2009.)

2011 deferred cash for performance will be paid out in two installments in the final month of 2012 and 2013, a change from the previous deferral plan that paid out in thirds over 18 months.

The amount deferred for junior employees won’t exceed 25 percent of their bonuses and those who are paid less than $250,000 won’t have any cash deferred.*

*(The above was reported to FinancialAdvisor by a person briefed on the plans, who declined to be identified because the plan has not been made public.)