Morgan Stanley's top investment bankers and traders in Asia are set to receive up to a 50% increase in bonuses due to strong business growth and a lower base from the previous year, as confirmed by two sources familiar with the situation.
This rise in bonus payouts comes on the heels of the recent appointment of the new CEO Ted Pick and a surge in trading activities across the Asia Pacific region, driving a 51% increase in the bank's institutional equities business globally in the fourth quarter compared to the previous year, with notable contributions from the Asia region.
According to one source, major Wall Street institutions such as Morgan Stanley are witnessing substantial bonus hikes for traders in Asia, buoyed by robust client activities in the previous fiscal year.
Reports indicate that Morgan Stanley, a leading equities deal earner in Asia, has informed select senior bankers in the region to expect bonuses approximately 40% higher than those received in 2024.
Elevated bonus distributions play a vital role in retaining top talent in investment banking, with particular significance in the Asian market over recent years.
Although the sources opted for anonymity due to confidentiality reasons, a spokesperson for Morgan Stanley in Hong Kong chose not to provide a comment, as it is customary for investment banks not to divulge bonus specifics for their staff.
Insider information mentioned in Bloomberg indicates that senior Morgan Stanley bankers, particularly those involved in deals in India and Australia, can anticipate bonus increases ranging from 30% to 40% this year.
According to Dealogic data, Morgan Stanley ranked second in investment banking revenue last year in the APAC international and Japan regions, accumulating $355 million in fees in APAC, following JPMorgan, and $511 million in Japan, trailing Nomura.
As per one source, the anticipated surge in Morgan Stanley bonuses for 2025 follows a significant decrease in bonuses received by senior dealmakers last year, plunging by over 20% compared to the previous year.
Reportedly, nearly one-third of managing directors in Asia did not receive any bonuses last year.