Friday, January 13, 2017

Morgan Stanley Cuts Bankers, Bonuses as Deals, IPOs Stall - Sources

A Reuters Exclusive



Morgan Stanley (MS.N) laid off a number of senior investment bankers last week and cut bonuses by roughly 15 percent because of a decline in revenue from dealmaking and capital raising across Wall Street, people with knowledge of the matter told Reuters.

Individual bankers were awarded different amounts depending on performance and geographic region, though though many received a smaller paycheck for 2016, said the sources on Thursday, who were not authorized to discuss compensation publicly.
 
Morgan Stanley, which ranked fourth for investment banking fees last year, cut more than 20 managing directors from its investment banking division globally, representing about 5 percent of the total, the sources said.
 
While the bank typically lets go of the bottom 5 percent of its workforce at year-end to get rid of underperformers, the cuts to senior bankers were deeper than in years past, according to the sources. 

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Source: Reuters (via The Empire Report)

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