Bonus Boom in Asia: Morgan Stanley’s Top Performers Set to Reap Rewards
Morgan Stanley’s top investment bankers and traders in Asia are in for a windfall, with bonuses expected to surge by up to 50% due to exceptional business growth and a low-base effect from last year. This significant increase is a testament to the Wall Street firm’s strong performance under its new CEO, Ted Pick, and the region’s thriving trading activities.
Robust Revenue Growth Drives Bonus Hike
The bank’s institutional equities business, a key component of its sales and trading division, saw a remarkable 51% revenue growth globally in the fourth quarter compared to the same period last year. The Asia business played a crucial role in driving this growth, providing a substantial boost to the global figures.
Top Performers to Receive Hefty Bonuses
Morgan Stanley, one of Asia’s largest equities deal fee earners, has informed some of its top bankers in Asia that their bonuses will increase by around 40% this year compared to 2024. This move is critical in retaining top dealmakers, particularly in Asia, where investment banks have faced layoffs in recent years.
Industry-Wide Trend
Morgan Stanley is not alone in offering substantial bonuses to its top performers in Asia. Other top Wall Street banks are also seeing big bonus increases for traders this year, driven by buoyant client activities last year.
Low Base Effect Contributes to Bonus Surge
The significant increase in bonuses comes off a low base last year, when senior dealmakers saw their bonuses fall by more than 20%. In fact, close to one-third of managing directors did not receive any bonus in Asia last year. This year’s bonus hike is a welcome respite for these high-performing individuals.
Morgan Stanley’s Strong Performance in Asia
Morgan Stanley ranked second in investment banking revenue in both the APAC international and Japan regions last year, according to Dealogic data. The bank collected $355 million in fees in APAC and $511 million in Japan, solidifying its position as a leading player in the region.
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