Morgan Stanley Reduces Investment-Bank Pay to $5.2 Billion
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Morgan Stanley, the sixth-largest U.S. bank by assets, set aside $5.2 billion in the first nine months of 2012 to pay investment-bank employees, a 9 percent decline from a year earlier.
The ratio of compensation to revenue in the unit fell to 44.9 percent, compared with 48.4 percent in the same period a year earlier, when excluding accounting gains and losses related to the firm’s credit spreads. That’s still higher than Goldman Sachs Group Inc. and JPMorgan Chase & Co.’s investment bank. Compensation and benefits for all of Morgan Stanley totaled $12 billion in the first nine months, down 4 percent.