Morgan Stanley rumored to have increased junior banker base by 25%
Heard this from an associate at MS
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I Heard the same rumor.... I expect other shops to do the same to remain competitive. Anyone hear of any other banks raising pay across the board?
$125k base for associates? They must really be losing a lot of talent to Management Consulting.
125k was already base for 1st year Ass (100 is for stub). This would imply it is going to 150+.
this would put 1st year analyst at 87,500
Damn, that would be pretty nice. I guess most top IB candidates either want elite boutiques or, more likely, dont have the interest in IB that prior classes had.
If I had to guess, Morgan Stanley has to be losing a lot of candidates to tech, MBB, and buyside analyst positions to make this move. The reason banking has been so popular is because its always paid very high relative to the competition, pay has been 70k base for a while now and top candidates just arent seeing it as "worth it" compared to other attractive options that (in their mind) arent going to crush you with hours.
85k+ base with signing and a healthy year-end bonus is pretty hard to beat for any entry-level job though, even in NYC.
Even if that were true, and bonuses remained flat, it still doesn't touch elite boutique comp.
This raise only applies to Associates and VPs. Does not apply to analysts. It is not 100% yet. It was mentioned during the ISG Q2 review. It still needs to be signed off by the top execs. Also, employees are not sure if this means bonuses will be reduced. The words were "we understand associates and vice presidents are having 'cash flow issues'". I am of the opinion that bonuses will be reduced -- maybe not by the full 25%, but at least partially. Or the bonuses will now be a lot more deferred / stock based comp.
I haven't watched the ISG Q2 review but a base salary for AN has increased by 6% I believe.
It would be great if they could do this for analysts...
just heard this on Bloomberg this morning, for associates & VPs only, said to help employees with their cash flow
http://dealbook.nytimes.com/2014/07/28/morgan-stanley-to-increase-base-…
Wouldn't make much sense to do this for analysts. Just another incentive banks are probably gonna start throwing to keep people from jumping ship
"Morgan Stanley, though it has not announced a formal weekend policy, has adopted guidelines about time management, the person said. It has also organized internal conferences focused on career development."
Never heard of the said guidelines. Such a liar
Guidelines to be in place in 2050.
i guess it's a given that other top banks will follow suit, but any idea if this will affect MBB pay? if 1st year associates went from making a base of 125k to now ~155k, that puts them a solid 15-20k ahead of post-MBA MBB starting base salary. seems like MBB will need to adjust their salaries in order to keep up especially when you factor in the small consulting bonuses compared to IB bonuses (even if IB bonuses now take a 25% haircut).
From the WSJ:
"The move, which affects associates and vice presidents in the bank's global markets and investment-banking divisions, won't affect bonuses, which are determined separately around year-end and could fall even as salaries move higher, said a person familiar with the matter."
Long overdue.
it was on the wsj
http://online.wsj.com/articles/morgan-stanley-plans-pay-raise-for-junio…
I heard from AS/VP that the 25% increase was offset by their lower bonuses. More cash-flow but the all-in comp remains unchanged... that means there's on need to wait till the bonus season to jump ship!
No one really knows how all-in comp will be impacted at this point. Will be interesting to see how it shapes up at the end of the year, and then if other banks follow suit to remain competitive.
Wonder how quickly banks will move to match...
Purely anecdotal but M&A is red hot right now. Companies and PE firms are anxious to ram deals through while they still can.
Couple of banks (non MS) offered their summer associates 125K base to join next years class earlier today. So this is probably a reality across most banks moving forward.
Base up 25%, bonus down 50%.
I can confirm that offers to summer associates who just finished internships are 125k base. Does anyone know if incoming associates (starting now) who were offered 100k last year will be bumped up to 125k now?
Yeah, my friend is working there and she said incoming associates are bumped up as well, apparently they got an official announcement about it last week. They were also basically told that no one really knows how it will affect bonuses yet. Supposedly the bump is retroactive to beginning of July for FTs that were already there.
Is your friend at Morgan Stanley? I wonder if the other banks will follow suit.
Heard rumors that some banks will bump up once people hit the desk from training. In any case, everyone is eagerly waiting.
Where did you hear this? I hope it's the case!
Just rumors. Have friends at other BBs. Everyone in training is pretty eager for a bump.
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