Morgan Stanley's Asia Bonuses: A 50% Jump for Top Bankers

Morgan Stanley's top-performing investment bankers and traders in Asia are set to receive up to a 50% increase in bonuses, according to two people with direct knowledge of the matter. This significant boost comes after the bank witnessed robust business growth and a low-base effect from last year. The jump in bonus payouts is a reflection of Morgan Stanley's strong overall performance and growth strategy in the region.



The revenue of Morgan Stanley's institutional equities business rose by 51% globally in the fourth quarter compared to the previous year, with the Asia business providing a strong boost to the global growth. Top Wall Street banks, including Morgan Stanley, are seeing big bonus increases in Asia for traders this year due to buoyant client activities last year. Morgan Stanley, which is among Asia's largest equities deal fee earners, has told some top bankers in Asia that their bonuses will be around 40% higher this year compared to 2024.



Morgan Stanley's strong regional performance in 2024 solidified its leadership in Asia by ranking first in arranging the region's equity sales. Key transactions included the $3.6 billion sale of JD.com (JD) shares, a $3.3 billion deal for Hyundai Motor India, and Tokyo Metro's US$2.4 billion stock offering. Additionally, the bank secured the second spot in advising mergers and acquisitions across Asia-Pacific, including Japan, trailing Goldman Sachs Group (GS) by a narrow margin.

The substantial bonus increases also came off a low base last year when the most senior dealmakers saw their bonus fall by more than 20% from the previous year. Close to one-third of managing directors did not receive any bonus in Asia last year, further emphasizing the low-base effect.



In comparison, JPMorgan Chase & Co. (JPM) is offering more modest bonus hikes, with increases for senior bankers in the region limited to single digits, capping at 10%. This disparity in bonus increases between Morgan Stanley and JPMorgan Chase & Co. may have implications for talent retention and market competitiveness. Higher bonus increases at Morgan Stanley could help the bank retain its top dealmakers and traders, fostering a more loyal workforce and potentially attracting top talent from its competitors. This could lead to a competitive advantage in the Asia-Pacific region, further strengthening Morgan Stanley's market position.

In conclusion, Morgan Stanley's significant increase in bonus payouts for star Asia bankers reflects the bank's strong overall performance and growth strategy in the region. The robust business growth and low-base effect, supported by data and examples, contributed to the substantial bonus increases. The disparity in bonus increases between Morgan Stanley and JPMorgan Chase & Co. may have implications for talent retention and market competitiveness, potentially leading to a competitive advantage for Morgan Stanley in the Asia-Pacific region.