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Morgan Stanley the munificent

Morgan Stanley’s freshly announced full year results were worse than anticipated. At $262k per head, average compensation is nearly 30% below Goldman Sachs and 53% down on last year. However, there’s one area in which MS excels: redundancy pay.

Over the past 12 months, the bank says it spent $791m on severance payments. During this period, its headcount figures suggest it got rid of a mere 1,782 staff.

In reality, redundancies are likely to have been a lot higher – Morgan Stanley announced that it was cutting 10% of investment banking staff in November, at which time Bloomberg reported that it had already cut 4,400 staff.

Even allowing for 5,000 staff cuts in the past 12 months, Morgan Stanley paid an average $158k severance per head, far higher than the
$85k on offer at Goldman Sachs.

Equally interesting is the fact that despite announcing additional redundancies last month, Morgan Stanley appears to have gone ahead with John Mack’s July plan to add staff in derivatives, risk management and proprietary trading: the bank employed 92 more people at the end of November than at the end of August.

Comments (10)

  1. I got 253k last year as a 2nd year Associate, and 179k this year as a 3rd yr Associate!! Am utterly disgusted, what an absolute waste of hard work this year for nothing, thanks to idiots in another product line.

  2. I don’t get why you’d pay so much redundancy money? You’re not obliged to pay anything like that much, you can get away with just paying 2mths salary, so why throw money down the drain on people that don’t matter any more????

  3. re severance remuneration…yup millions for some and little over the statutoy minimum for most….morgan pay offs were decidedly ungenerous…and i know that to my cost after 3 years

  4. Asset Management at Morgan got whacked on bonuses.Bonuses down 30%+ No promotions! Mass talent exodus predicted towards mid sized but well paying companies. But, WHO ARE THEY?. NOTE TO GOLDMAN: MORGAN IT STAFF AVAILABLE FOR HIRE!!

  5. To “looking”, why on earth should MS be generous when it comes to paying you redundancy money? It’d be a complete waste of money of no benefit to them to give you any more than the statutory minimum, that is all you deserve for not being good enough.

  6. 179K for what job and what desk result?

  7. Ben, Equity Sales (both Cash & Deriv), with high focus on portfolios – made 7 figures for Marshall Wace.

  8. 7 figures of paper money that can vanish in a second of crisis when investors actually open their eyes?

  9. Robbie – It takes a real bozo to disclose pay. It’s very easy to play billy big b*****ks on a website. The thing is, the numbers you are bragging about are actually standard fare and not very impressive so I would keep them to yourself.

  10. Robbie, you can’t even string together a proper sentence in English. “Am…”! How about “I am…”? No more complaints from you until you learn to construct proper sentences.

    Prof. Higgins, Equities Reply

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