Morgan Stanley reduces share of pay pool

Morgan Stanley building

Morgan Stanley set aside a smaller share of revenue to pay employees at its investment-banking and trading division.

Bloomberg News reports that compensation for staff at the institutional securities unit fell 2.2% to $6.82bon for 2013.

Salaries, bonuses and previous deferred awards equalled 42% of adjusted revenue, down from 45% a year earlier.

Companywide compensation and benefits rose 4.2% to $16.3bn in 2013.

Morgan Stanley reported Q4 profit that beat analysts’ estimates as equity-trading revenue increased and earnings from wealth management climbed to a record.

Fourth-quarter net income fell to $181m from $594m.

The New York Times reports that the firm disclosed it had set aside an unusually large $1.2bn for litigation costs associated with its mortgage lending businesses and other credit crisis headaches.

The charge forced the bank’s institutional securities unit, which houses mortgage lending and trading operations, to report a $1.1bn pretax loss.

Morgan Stanley Cuts Investment Bank Pay to 42% of Revenue

Morgan Stanley Tops Estimates on Record Brokerage Earnings

A Debt-Related Charge of $1.2 Billion Puts a Dent in the Profit of Morgan Stanley

image: © lj16

Register for Financial Markets News Alerts