MORGAN Stanley is raising bonuses for some of its top investment bankers in Asia by as much as 40 per cent this year after a jump in revenue, according to sources 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 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 last year to more than US$600 million, while its bonus pool grew roughly 20 per cent, the sources said. By comparison, JPMorgan Chase will, on average, increase bonuses to senior bankers by single digits to 10 per cent in the region, two sources 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 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.
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Banks globally are raising bonuses amid an upturn in business. That follows two years of tepid increases as dealmaking slowed after a boon seen during the Covid 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 last year, 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 mergers and acquisitions in 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 to 2 per cent increases last year, 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 at the firm, another person 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
