Bonus cut has Morgan Stanley bankers feeling underpaidComments Off on Bonus cut has Morgan Stanley bankers feeling underpaid
Morgan Stanley boss James Gorman has left bankers in London cheesed off with their bonuses after he took an axe to pay.
Figures from salary benchmarking website Emolument show that just 10% of Morgan Stanley staff are happy with their bonus payments for 2016, down from 47% last year. However, the number who said they were unhappy rose to 65%, up from 41% last year.
The median bonus paid by Morgan Stanley to associate-level staff was 44.7% of base salary this year, down from 50.5% last year. Base salaries rose to £99,500 from from £89,000, according to the site.
The bank declined to comment.
The figures, based on 157 responses received from Morgan Stanley’s 5000 UK-based staff, provide a snapshot into the mood after Gorman shrunk the bonus pool this year.
It has reduced compensation and benefits by 17% over the past 12 months — a heavier hit than at many rival lenders.
Morgan Stanley’s compensation ratio at Institutional Securities — its investment bank — has fallen to 37%.
This means bankers get to keep $3.70 out of every $10 they generate for the business — the lowest level of any of the bank’s divisions.
Goldman Sachs was reporting pay figures today with expectations of tougher conditions despite a mergers and acquisitions frenzy during 2015.
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