(The Wall Street Journal) -- In an acknowledgment of the most difficult period in Bear Stearns' 84-year history, chief executive James Cayne and other senior executives are expected to forgo bonuses for this year, people familiar with their plans say.

The expectation comes as Bear prepares to announce tomorrow its first quarterly loss ever, an outcome certain to curb pay for the firm's 15,500 employees. This is a turnabout for Bear, which over the years has used its generous, merit-driven compensation system to recruit job candidates it calls PSDs: those who are poor, smart, and have a deep desire to be rich.