It’s not all “if you don’t like your pay STFU or GTFO” tough love over at the House of Gorman. The firm’s oldest junior bankers are getting a nice little bump to their compensation to help out with liquidity issues they might be facing. Junior junior bankers are getting hope that they might one day get raises too.
Morgan Stanley is raising base salaries for junior bankers by about 25 percent as part of an effort to improve working conditions and retention, according to people briefed on the matter. The firm is boosting salaries for associates and vice presidents worldwide in its investment-banking and capital-markets units, said the people, who asked not to be identified because the discussions weren’t public. Mark Lake, a spokesman for the New York-based bank, declined to comment. Morgan Stanley’s move is intended to aid younger employees with their cash flow amid higher bonus deferrals since the financial crisis, said one of the people. The salary increases won’t necessarily mean a similar jump in bonuses.