Morgan Stanley increases bonuses for top Asia bankers by up to 40%

(Bloomberg) — Morgan Stanley will boost bonuses for some of Asia’s top investment bankers by as much as 40% this year after a surge in revenue, people familiar with the matter said.

On average, the New York-based bank has boosted bonuses for its top executives in Asia by more than a decade to compensate them after meager payouts the previous year, people familiar with the matter said. Asked to remain anonymous while discussing private information.

People familiar with the matter said that the best-performing companies in markets such as India and Australia will receive increases of 30% to 40%.

Morgan Stanley’s revenue from Asian investment banking and capital markets (excluding Japan) rose about 50% last year to more than $600 million, while its bonus pool grew about 20%, people familiar with the matter said. By contrast, JPMorgan will increase the bonuses of senior bankers in the region by single digits on average, to 10%, two people familiar with the matter said.

Spokespeople for Morgan Stanley and JPMorgan declined to comment.

Morgan Stanley’s executive directors and vice presidents below managing director level received bonus increases of 10% to 15%, people familiar with the matter said. This group of bankers has experienced smaller declines over the past two years, by as much as single digits, compared with managing directors, with about one in five managing directors receiving zero bonuses.

Banks around the world are raising bonuses as business improves. The previous two years had seen tepid growth as dealmaking slowed after a boost during the coronavirus pandemic.

Bankers had a stellar year in India, with stock issuance more than doubling to $63 billion in 2024, according to data compiled by Bloomberg.

In Asia overall, Morgan Stanley ranked first in arranging equity sales in the region last year, including a $3.6 billion sale of JD.com Inc., a $3.3 billion deal for Hyundai Motor India Ltd. and a $2.4 billion deal for Tokyo Metro Ltd. Trading stock issuance.

The firm also ranks second in M&A advisory in the Asia-Pacific region, which includes Japan, by 2024, narrowly trailing Goldman Sachs Group Inc., according to data compiled by Bloomberg.

Overall, China-focused bankers at Wall Street firms will continue to receive modest bonuses as the world’s second-largest economy struggles to recover.

At one Wall Street investment bank, bonuses for bankers will increase by 5% this year after being flat or rising 1-2% last year, one of the people said. Another person familiar with the situation said total compensation for most was less than $1 million, while the country’s acting chief earned about $800,000 at the company.

China’s overseas equity sales nearly doubled to $25 billion in 2024, but were still far behind the $120 billion recorded in 2021, data compiled by Bloomberg show.

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