Morgan Stanley on Thursday will increase the annual bonus for the best performing employees by more than 20%, people who know the issue directly will be asked to pay fees by banks this year. deal boom.
According to two sources, bankers in the underwriting and M&A consulting business are expected to see the highest growth in Wall Street due to the strong performance of these divisions over the past year.
Globally, investment banks change their bonus money depending on the speed of their business. High bonuses help them retain talent in a competitive business environment.
Morgan Stanley employees are busy on Thursday and will be notified of bonus payments starting the long-awaited annual bonus season and then receive cash in early February, two sources said.
Morgan Stanley declined to comment.
The sources could not be named as the data has not yet been disclosed.
Employees of M&A and equity capital markets (ECM) units expect bonuses to increase by at least 15% and in some cases 20% or more compared to last year, two separate sources at the companies said.
As one source pointed out, other businesses with less productivity may see a flat or one-room increase in their bonus money.
The first two sources point out that the best performance of the M&A advisory and securities divisions will be rewarded when the bank holds its “contact day” on Thursday, where employees will receive bonuses and promotions for 2021. information about
However, bonus payments at Morgan Stanley could be lower than those of Bank of America Corp., which plans to increase its bonus fund for investment bankers by more than 40% last week, according to Acesparks News.
According to the report, trading and trading operations at Bank of America could see bonuses increase by an average of more than 30%.
Goldman Sachs, a record-breaking wave of M&A activity and another beneficiary of the initial public offering, will announce 2021 bonuses to employees next Wednesday, according to sources familiar with the matter.
Where is Morgan Stanley among his peers?
Morgan Stanley’s stock underwriting business has been one of its highlights over the past year.
Revenue in the division grew as securities market lists followed and companies took advantage of increased market liquidity by issuing new shares.
According to Refinitive, Morgan Stanley ranked third in the global investment bank league table of payments, earning $ 9.1 billion, up 28 percent from 2021 in the previous year.
Data show that JPMorgan and Goldman Sachs topped the table.
M&A’s consulting revenue has benefited from global mergers and acquisitions in 2021, breaking all time records.
According to Refinitive, Morgan Stanley ranked first in the Asia Pacific M&A League table in terms of published deals and ranked 3rd globally.
In the Asia-Pacific region, including Japan, the bank is ranked third in the ECM league table after CITIC and Goldman.