Similar to its US rivals, Morgan Stanley will cut investment banker bonuses, with Asia potentially seeing total payout decrease by one-third.
Morgan Stanley plans to cut investment bankers’ annual bonuses by as much as 50 percent in Asia, according to a «Reuters» report citing unnamed sources, with an average reduction of 30 percent.
This could lead to bankers’ overall compensation in the region falling by an average of 30 percent.
Bonus discussions are still underway and the cuts in Asia could be replicated in the US and Europe.
China Reduction
Similar to industry peers, Morgan Stanley has faced numerous challenges in 2022 including rising rates, economic uncertainty and Covid-related disruptions.
The bonus cut this year contrasts with a 20 percent boost globally in 2021 while Asia has also seen 50 investment banking jobs axed with 90 percent from China teams based onshore and offshore, the report added.
