Morgan Stanley’s top-performing investment bankers and traders in Asia are set to receive a significant boost in bonuses, with payouts increasing by as much as 50 per cent, according to sources familiar with the matter. The surge comes on the back of strong business growth and a rebound from a lower base in 2024.
The Wall Street giant’s decision to reward its top talent in the Asia-Pacific region coincides with new CEO Ted Pick completing a successful first year at the helm. The bank has benefited from buoyant trading activity in Asia, which has contributed significantly to its global performance.
In the fourth quarter of 2024, the revenue from Morgan Stanley’s institutional equities business—an integral part of its sales and trading operations—rose by 51 per cent globally compared to the previous year. The Asia business played a critical role in driving this growth, the bank reported earlier this month.
Big bonuses reflect booming business
Wall Street firms, including Morgan Stanley, have seen a resurgence in client activity across Asia, leading to a substantial increase in bonuses for traders this year. According to sources, some top bankers in Asia have been informed their bonuses will rise by around 40 per cent compared to last year.
Morgan Stanley is among Asia’s leading earners in equities deal fees, a position that underscores the importance of retaining top talent in the region. The bank’s higher bonus payouts are part of its strategy to incentivise and retain star performers, especially in a market that has seen significant layoffs over the past few years.
While investment banks typically keep bonus figures confidential, Bloomberg has reported that senior Morgan Stanley bankers, particularly those involved in deals across India and Australia, are expected to see bonus increases of 30 to 40 per cent this year.
Recovering from a low base
This year’s jump in bonuses comes after a challenging 2024, when many senior dealmakers experienced cuts of over 20 per cent in their bonus payouts. One source revealed that nearly one-third of managing directors in Asia received no bonuses last year.
Morgan Stanley ranked second in investment banking revenue across both the Asia-Pacific international and Japan regions in 2024, according to data from Dealogic. The bank earned $355 million in fees in the Asia-Pacific region, trailing JPMorgan, and $511 million in Japan, where it was outperformed by Nomura.
The strong performance in equities trading and dealmaking this year has allowed the bank to reward its key players. Sources suggest this move is critical to retaining talent, particularly in the highly competitive Asian markets, where experienced dealmakers are in high demand.
Focus on Asia-pacific talent
Morgan Stanley’s decision to boost bonus payouts highlights the growing importance of its Asia-Pacific operations. The region’s robust trading activities and high-profile deals have positioned Asia as a key driver of global growth for the bank.
Sources familiar with the bonus increases noted that this adjustment is also aimed at addressing dissatisfaction among employees in Asia following last year’s cuts. While the bank has refrained from commenting on the bonus figures, the move signals a broader trend among top investment banks to prioritise talent retention in key markets.
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Industry implications
The significant increase in bonuses for Morgan Stanley’s Asia team reflects a broader recovery in investment banking activity across the region. It also underscores the importance of Asia to the global operations of leading Wall Street firms.
As one of the largest players in the region, Morgan Stanley’s actions are likely to set a benchmark for other investment banks operating in Asia. With competition for top talent intensifying, the move to substantially raise bonuses could influence compensation trends across the industry.
Looking ahead
Morgan Stanley’s performance in Asia demonstrates its ability to capitalise on market opportunities in a challenging global environment. By rewarding its top performers, the bank is not only recognising their contributions but also reinforcing its commitment to growth in the Asia-Pacific region.
As the banking sector adapts to shifting economic conditions, the emphasis on retaining and incentivising talent will remain a priority. Morgan Stanley’s decision to significantly boost bonuses in Asia signals its intention to stay competitive and maintain its leadership position in the region.
