Morgan Stanley boosts senior Asia banker bonuses by up to 40%
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Morgan Stanley is raising bonuses for some of its top investment bankers in Asia by as much as 40 per cent in 2025 after a jump in revenue.
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NEW YORK – Morgan Stanley is raising bonuses for some of its top investment bankers in Asia by as much as 40 per cent in 2025 after a jump in revenue, according to people familiar with the matter.
On average, the New York-based bank has raised bonuses for its senior ranks in Asia by the high teens to compensate them after lean payouts the previous year, said the sources, asking not to be identified discussing private information.
Top performers in markets, including India and Australia, are set to receive increases of 30 per cent to 40 per cent, the sources said.
Morgan Stanley’s revenue from Asia investment banking and capital markets, excluding Japan, rose about 50 per cent in 2024 to more than US$600 million (S$816 million), while its bonus pool grew roughly 20 per cent, the sources said.
By comparison, JPMorgan Chase will, on average, increase bonuses for senior bankers in the region by single digits to 10 per cent, two people familiar with the matter said.
Spokespeople at Morgan Stanley and JPMorgan declined to comment.
Bonuses for executive directors and vice-presidents – the levels below managing director – at Morgan Stanley increased by 10 per cent to 15 per cent, the sources said.
This group of bankers experienced a smaller decline over the past two years, with a high single-digit drop, than managing directors, of whom about a fifth received zero bonuses.
Banks globally are raising bonuses amid an upturn in business. This follows two years of tepid increases as dealmaking slowed after a boom seen during the Covid-19 years.
Bankers saw a banner year in India, where equity offerings more than doubled to US$63 billion in 2024, data compiled by Bloomberg showed.
Overall in Asia, Morgan Stanley ranked first in arranging the region’s equity sales in 2024, including a US$3.6 billion sale of JD.com shares, Hyundai Motor India’s US$3.3 billion deal and Tokyo Metro’s US$2.4 billion stock offering.
It also ranked second in advising on mergers and acquisitions in the Asia-Pacific, including Japan, in 2024, trailing Goldman Sachs Group by a narrow margin, according to Bloomberg-compiled data.
In general, across Wall Street firms, bankers focused on China will continue to see muted bonuses as the world’s second-largest economy struggles to revive.
At one Wall Street investment bank, those bankers are set to see a 5 per cent bump in their bonuses after flat or 1 per cent to 2 per cent increases in 2024, one of the sources said.
Most will take home less than US$1 million in total compensation, with a performing sector head for the country earning around US$800,000, another source said.
Chinese overseas stock sales nearly doubled to US$25 billion in 2024, but they still lag far behind the US$120 billion recorded in 2021, according to data compiled by Bloomberg. BLOOMBERG
