For Recruiters
Meanwhile, at Morgan Stanley.

Morgan Stanley cuts pay for bankers and traders as profits slide

JPMorgan may seem to have increased bonuses in its corporate and investment bank in the third quarter, but today's results from Morgan Stanley suggest that similar generosity may not be extended elsewhere. 

Morgan Stanley's spending on compensation in its institutional clients unit (investment bank) fell 13% year-on-year in the third quarter and is down 15% for the year as a whole. 

By comparison, JPMorgan hiked compensation spending in its investment bank by 17% y-o-y in third quarter. 

The chart below shows the two banks' comparative performance in the first nine months of 2022. Despite Morgan Stanley's apparent lack of generosity, it outperformed JPMorgan in M&A advisory, fixed income sales and trading and equities sales and trading when this year's revenues for the first three quarters are compared to last year's 

Morgan Stanley's fixed income sales and traders did especially well in the third quarter, with a 33% year-on-year revenue increase versus a far more feeble rise at Citi. The bank said the increase reflected, "strength in macro products on high client engagement and volatility in the markets."

With compensation spending falling, the implication is that Morgan Stanley's macro traders may not be rewarded for their efforts. Profits at the institutional clients business fell 43% year-on-year in the third quarter, and were down 32% year-on-year in the first nine months as a whole.

Click here to create a profile on eFinancialCareers. Make yourself visible to recruiters hiring for finance and technology jobs where you are well paid even during a difficult year. 

Have a confidential story, tip, or comment you’d like to share? Contact: sbutcher@efinancialcareers.com in the first instance. Whatsapp/Signal/Telegram also available (Telegram: @SarahButcher)

Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by human beings. Sometimes these humans might be asleep, or away from their desks, so it may take a while for your comment to appear. Eventually it will – unless it’s offensive or libelous (in which case it won’t.)

Photo by Iker Urteaga on Unsplash

author-card-avatar
AUTHORSarah Butcher Global Editor
Cancel

Apply for jobs

Find thousands of jobs in financial services and technology by signing up to eFinancialCareers today.

Boost your career

Find thousands of job opportunities by signing up to eFinancialCareers today.
Latest Jobs
Webbe International
Equity Relative Value Portfolio Manager
Webbe International
Hong Kong
Recruitment Intelligence Consultants Limited
INSTITUTIONAL CLIENT SERVICE MANAGER / CLIENT REPORTING
Recruitment Intelligence Consultants Limited
Hong Kong
Recruitment Intelligence Consultants Limited
HEAD OF INVESTMENT, FAMILY OFFICE
Recruitment Intelligence Consultants Limited
Hong Kong
Recruitment Intelligence Consultants Limited
COMPLIANCE, ASSET MANAGEMENT - ASSISTANT MANAGER / MANAGER
Recruitment Intelligence Consultants Limited
Hong Kong
Recruitment Intelligence Consultants Limited
CORPORATE COMMUNICATIONS & EXTERNAL RELATIONS - DIRECTOR / ASSOCIATE DIRECTOR
Recruitment Intelligence Consultants Limited
Hong Kong
Recruitment Intelligence Consultants Limited
REGIONAL BENEFITS, HUMAN RESOURCES - MANAGER / SENIOR MANAGER / AVP
Recruitment Intelligence Consultants Limited
Hong Kong