Morgan Stanley Plans to Boost Junior Banker Pay as Much as 25%

AdjustedEBITDA's picture
Rank: Baboon | 154

Interesting to hear about the quicker promotions. I know some BB's started the 2 years as an analyst before promotion a few years back but surprised MS apparently wasn't one of them.

Anyone think we should be seeing pay increases for juniors across the street similar to 2015?

https://www.bloomberg.com/news/articles/2018-04-30...

Comments (78)

Apr 30, 2018

Not in banking, but it would be smart for the other BBs to raise salaries to match MS to stay competitive.

Apr 30, 2018

Can anyone at MS confirm this?

Would that mean the $125 (stub)/$150/175/200 progression goes to $150 (stub)/180/210/240? Seems kind of ridiculous if current VP bases are ~$200-250k.

Array

Apr 30, 2018
princepieman:

Can anyone at MS confirm this?

Would that mean the $125 (stub)/$150/175/200 progression goes to $150 (stub)/180/210/240? Seems kind of ridiculous if current VP bases are ~$200-250k.

I would guess 150/175/200/225. Which would definitely be matched across the street. EBs would probably quickly move up, as well, to stay about 25k above that. VP bases would probably move up to 225/235 for first year. I haven't heard anything yet but crossing my fingers.

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Apr 30, 2018

+SB

That sounds a lot more reasonable.

Array

May 1, 2018

I can confirm the $125k stub went up to $150k.

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Apr 30, 2018

.

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Best Response
Apr 30, 2018

Susquehanna? a BB? wat

Array

    • 38
Apr 30, 2018
princepieman:

Susquehanna? a BB? wat

Probably auto corrected for Jackson Steinem

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Funniest
May 1, 2018
EBITDAOverlord:

Susquehanna.

Hahahaha just go ahead and slide that one in there, you Susquehanna banker, you!

'I'm jacked... JACKED TO THE TITS!!'

    • 7
May 2, 2018

SIG = FIG bro

May 4, 2018
EBITDAOverlord:

I'd say a 25% bump is modest. Would not be surprised if BB's (think GS, MS, Susquehanna) get a 35% hike in the next year based on some articles I've read. Only for first year analysts though since most go straight MF after one year.

Great post

Master troll

    • 1
May 6, 2018

"most go straight MF after one year"
You clearly have no idea about the industry.
Anyways, I can confirm

Apr 30, 2018

My MM still refuses to do early promotes (whether at 2 or 2.5 years) for analysts. It's absurd. Def doesn't incentive people to stay.

May 1, 2018

sad

What concert costs 45 cents? 50 Cent feat. Nickelback.

May 5, 2018

Thanks Donald!

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Apr 30, 2018

How long will it take to other BBs to follow suit in hiking base?

Apr 30, 2018

Can anyone confirm the new base salary tiers?

    • 1
Apr 30, 2018

Is this only for associates or do analysts receive a pay bump too?

    • 1
May 1, 2018

This would be pretty sweet. Probably will take a while to trickle down through other banks, though.

    • 2
May 1, 2018

Good news for future slaves

May 1, 2018

"Yeh m8 i didn't bother recruiting for PE cuz of this new salary hike, cuz u know im not in this to make less money. just like econ 101 its all about supply and demand " - my associates

What concert costs 45 cents? 50 Cent feat. Nickelback.

    • 2
May 2, 2018

Only in the US?

May 5, 2018

Dorsia?

    • 1
May 2, 2018

This is only for IBD probably.
Didn't hear anything similar for sales&trading but i may be wrong.
Salaries are already lower there, this will widen the gap even more.

May 2, 2018

it's a good time to be alive

May 2, 2018

Me likey

May 3, 2018

Can anyone confirm whether the 2-year analyst period is applicable for all offices?

May 3, 2018

Who does this affect exactly? Unlikely but 2019 SA and 25% more would be dope. Or does this start at associate level?

May 3, 2018

Associate from what I gather

May 3, 2018

Gather from what? More than this article?

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May 4, 2018

Can anyone confirm analyst total comp (mid bucket) at MS? Is it changing?

May 4, 2018

Associates only. WhyTF would BBs pay 150 for glorified interns/analyst-1s.

May 5, 2018

They compete for talent that will stay with the bank for more than 2 years.

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May 4, 2018

Does anyone know if this applies to IBD only? How about Sales & Trading?

May 6, 2018

I was wondering the same thing. Will we see this trickle through to AM, S&T at BB?

May 6, 2018

Doubt this trickles down to other business lines. AM and S&T don't lose a huge percentage of their workforce after 2 years. No need to bump pay to keep people there.

May 6, 2018

Only reason I am wondering is my firm AM and IB are same salary diff bonus obviously

May 10, 2018

Those on here who commented on confirmed MS Stub-AO going to 150, can you confirm if this went live IBD-wide? As in existing Associates also got the bump to the 150(stub)/175/200/225?

Anyone know of any other banks announcing bumps? I haven't heard anything at my firm yet, so wondering if this is a 2015-esque base change or just one-off

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May 11, 2018

A1 base is staying at 150, so there's no bump from A0 to A1 anymore.

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May 11, 2018

So A0-A1 is 150, A2 is 175 and A3 is 200? That would mean no bump across A1-A3, no? Or A0-A1 at 150, A2 at 200, A3 at 225?

May 12, 2018

So it's just an extra $10.5k ($25k*5/12) then. The article sure made it seem like a bigger deal than that.

May 12, 2018

A0 Stub: $150
A1: $175
A2: $200
A3: $225

Effective beginning new MBA class in Summer. Likely applicable across Street shortly.

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May 12, 2018

Will this include global capital markets as well? ECM/DCM

May 15, 2018

Are these for MS? Effectively a $25K base bump across the associate ladder then, right?

Any news on other firms following the move? I start at an EB later this year and haven't heard anything on base increase. A0 (stub associate) is 150 at my shop. Any ideas what progression looks like at EBs? (Think Moelis, Greenhill, PWP, PJT/etc)

May 15, 2018

Yes for MS. What I heard from Selby Jennings today was Guggenheim was first to adopt the increase and potentially Greenhill as well.

May 20, 2018

150/160/180/210 at my EB. With total comp coming in 25-35% higher than BB at the associate level. I don't think there will be much reaction unless/until we see total comp rise significantly at the BBs, which this hasn't shown yet (but obviously could at year end, which would cause a chain reaction).

May 15, 2018

Are you sure those numbers are correct? What I heard is that A1 is staying at 150 and A3 is staying at 200.

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May 16, 2018

I heard it was 25k across the board. Includes GCM.

May 20, 2018

I heard same as you, I think he's incorrect

May 16, 2018

Did A0's offer letters indicate 125k or 150k? In other words, once they hit the desk, will they be notified of a raise to 150k or was it already included in their offer letter?

Thanks

May 16, 2018

Those offer letters went out in August 2017. Why would they say 150k when the raise was just announced?

May 16, 2018

Revised offer letters were sent to incoming associates with the new salary number,

    • 1
May 16, 2018

I'd be curious to see if total comp also shifts up 25% or if it will remain the same (higher base but smaller year-end bonus).

May 20, 2018

Was told that 125/150/175/200 is now 150/150/200/200. Was also told that no one is reacting yet because most don't believe total comp will change much..

All second hand, but directly from people who would know, so take that fwiw.

Jun 28, 2018

Hey guys, any updates on this or word of this being rolled out at other banks? Very curious...

Jun 29, 2018

Can confirm that JPM incoming associates got an email yesterday putting this into effect

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Jun 29, 2018

Doubt an extra $68/day will have any meaningful impact.

    • 1
Sep 18, 2018

Math is hard.

Jun 30, 2018

So what is new base now from A0 to A3?

Jul 19, 2018

Bump

Aug 13, 2018

Any updates? Would be interested to see if summer associates across the street can confirm these changes.

Aug 16, 2018

Whatever happened with this given conflicting comments and no recent updates. Was this effectively just a PR stunt by MS?

Aug 17, 2018

MS, JPM, CS, BAML apparently all increased base by 25k across the board for associates.

Aug 17, 2018

GS too

Aug 17, 2018

So where does Analyst promotes and business school associates start at?

Aug 30, 2018

Bump - anyone have any insight if this has translated over to other banks as well? Curious about MMs...

Aug 30, 2018

Is this only for IBD, or does this translate to all Front Office roles (S&T/ER/AM)? and have we confirmed Assoc. is now 150/150/200/200?

Sep 7, 2018
Comment
Sep 18, 2018
Dec 15, 2018