Morgan Stanley is set to reward its top-performing investment bankers and traders in Asia with bonuses as much as 50% higher this year, a reflection of strong business growth and a low base effect from 2024. Sources familiar with the matter revealed the bonus increases, marking a notable contrast to the previous year’s downturn.
The increase follows a successful year under new CEO Ted Pick, who oversaw buoyant trading activities in the Asia Pacific region. The bank reported a significant 51% year-on-year growth in its institutional equities business globally during the fourth quarter. The Asia division played a pivotal role in fueling this growth.
Bonuses for traders, in particular, have surged across major Wall Street banks, driven by robust client activity in the region. At Morgan Stanley, some senior bankers are expected to see bonuses rise by approximately 40%, according to insiders.
The higher payouts are viewed as a critical strategy to retain top talent within investment banks, especially in Asia, where layoffs have been prevalent in recent years. The sources, who requested anonymity due to the sensitivity of the matter, highlighted the importance of this incentive for maintaining key personnel.
A Morgan Stanley spokesperson in Hong Kong declined to comment on the specifics, as the firm, like most investment banks, typically does not disclose the amount of bonuses awarded.
Sources also confirmed that senior bankers involved in deals in India and Australia could see bonus increases ranging from 30% to 40%.
Morgan Stanley ranked second in investment banking revenue in the Asia Pacific and Japan regions in 2024, according to Dealogic data. The firm earned $355 million in fees in APAC, trailing JPMorgan, and $511 million in Japan, where it followed Nomura.
The bonus increases are particularly striking when compared to the significant decline in 2024, when senior dealmakers saw their bonuses drop by more than 20% from the previous year. In fact, nearly one-third of managing directors in Asia did not receive any bonus at all last year.
This year’s bonus adjustments are a clear indication of Morgan Stanley’s efforts to recalibrate and reward its top talent as it continues to capitalize on growth in the region.
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