How is Morgan Stanley bonus and MD day going for you?

It's bonus day at Morgan Stanley. The US bank isn't commenting, but multiple people there tell us they're being told their bonuses for 2025. It is on.

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So, how is it going? As ever, this depends upon who you ask. We have heard of laughs. We have heard of tears. Some of the tears are being shed by markets professionals. Others are content. "It was not a bloodbath," says one insider. "It was favourable," says another. "People are happy," says a third.

It is not just bonus day. Today is also Morgan Stanley managing director (MD) day. Last year, Morgan Stanley promoted 173 new MDs. In 2024, it promoted 155 new MDs and in 2023 it promoted 184. This year, it promoted 184, again. In the London markets team, promotions are thought to include Andrew Willersdorf and Sidharth Chaturvedi in equities and Jami Qureshi in fixed income.

This is a particularly important year for bonuses at all banks in London. The EU bonus cap has been lifted, and banks that were previously constrained to pay bonuses no higher than 2x salary can now pay whatever they like. In 2024, Morgan Stanley's London material risk-takers received bonuses averaging £900k and total compensation averaging £1.5m as a result of the bonus cap. 

This year, the expectation is that bonuses will be higher and salaries lower. Like Citi, however, sources say that Morgan Stanley has kept salaries for existing staff static at high levels while cutting salaries for new recruits. This is thought to adding tension to bonus allocations. 

Not all Morgan Stanley bonus announcements and promotions are happening today. In Asia, people will find out tomorrow.

Morgan Stanley cut jobs last year, including 230 people in New York. It's due to announce fourth quarter results on January 15th. 

Updated with number of new MDs

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