Morgan Stanley raises bonus pot to £10bn... with just $4.7 bln profit!

[AtW]

Morgan Stanley has increased to $16bn (£10bn) the amount it will reward staff in pay and bonuses as the bank's brokerage and asset management businesses made up for its torrid time in the bond market.

The compensation pool put aside by the New-York based investment bank is an 11pc increase on 2009 and follows an almost tripling in full-year profits to $4.7bn. It works out at an average $256,595 for the bank's 65,542 employees.

The bank's decision in 2009 to gain a controlling stake in Morgan Stanley Smith Barney, its retail brokerage joint venture with Citigroup, is paying off. The division generated 20pc of Morgan Stanley's profits in the final three months of the year. Meanwhile, its asset management business accounted for another 20pc, and attracted $22.9bn in investors' money over the course of the year. In total, profits for the fourth quarter climbed 35pc to $836m.

The ability of these divisions to make money helped shield Morgan Stanley from a poor performance in its fixed-income business, where it lost money and Wall Street rivals also struggled. Morgan Stanley said that it increased the average amount of pay that is deferred to 60pc last year from 40pc in 2009.

Source: Morgan Stanley raises bonus pot to £10bn - Telegraph

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So $16 bln to staff (on top of salaries that surely great exceed minimum wage), and year profits are only $4.7 bln, ffs?!?!? If it was the other way around: $16 bln profits and $4.7 bonus then MAYBE it remotely made sense, but how the fook they can (on top of big salaries) pay $16 bln to themselves whilst making only $4.7 bln profit???!

[DimPrawn]

Please Read:


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[thunderlizard]

So $16 bln to staff (on top of salaries that surely great exceed minimum wage)

The first sentence of your quote, which you also highlighted in bold, says that is not the case. "Pay and bonuses" probably includes salaries.

Morgan Stanley has increased to $16bn (£10bn) the amount it will reward staff in pay and bonuses

Anyway, loads of companies have a wage bill that far exceeds their net profit. I'd even hazard a guess that yours does.

[AtW]

Anyway, loads of companies have a wage bill that far exceeds their net profit.

Let's say that $16 bln includes all wage components, I doubt those account for majority of it though, but let's say they do, this combined with profit of $4.7 bln means cost of staff is 77% of combined figure, how many industries you know where this sort of ratio is present? How many of them have staff rewarding themselves massive part of that figure as a BONUS - not 10-15% of wage, but double or even more as a BONUS taken out of shareholder pockets.

[DimPrawn]

Let's say that $16 bln includes all wage components, I doubt those account for majority of it though, but let's say they do, this combined with profit of $4.7 bln means cost of staff is 77% of combined figure, how many industries you know where this sort of ratio is present? How many of them have staff rewarding themselves massive part of that figure as a BONUS - not 10-15% of wage, but double or even more as a BONUS taken out of shareholder pockets.

If shareholders cared, they'd sell the stock.

Why does it make you so angry?

They employ lots of people and pay them very well and pay a tulip load of tax.

What's not to like?

[AtW]

What's not to like?

Quality of service I get from my bank (LTSB) is getting worse and worse - fook all interest paid also, no wonder they make billions - pay 0% interest and lend at 7-20%

And FFS, in 2009 I asked our bank to give us small overdraft - like £15k, I was told for this I'd need to secure it on my house, but they'd give £8k overdraft (£350 "admin" fee) over personal directors guarantee and £2k credit card - then year later they call and say whether we'd like to keep it... I said ok, let's do it, but the guy from bank says it's not like personal overdraft that is free, you'd have to pay us like £350 again

I told him where to go. 's the lot of them.

[DimPrawn]

Quality of service I get from my bank (LTSB) is getting worse and worse - fook all interest paid also, no wonder they make billions - pay 0% interest and lend at 7-20%

And FFS, in 2009 I asked our bank to give us small overdraft - like £15k, I was told for this I'd need to secure it on my house, but they'd give £8k overdraft (£350 "admin" fee) over personal directors guarantee and £2k credit card - then year later they call and say whether we'd like to keep it... I said ok, let's do it, but the guy from bank says it's not like personal overdraft that is free, you'd have to pay us like £350 again

I told him where to go. 's the lot of them.

Oh I see, you don't like them because you are poor.

If you needed a low cost loan (and yes an overdraft is a loan), the highstreet banks are the last place to go.

[AtW]

If you needed a low cost loan (and yes an overdraft is a loan), the highstreet banks are the last place to go.

We did not need it - but I figured that it is not a good idea to chase it WHEN you need it, so I decided to get it before - just in case we get cashflow issues with some clients paying late, this relates to late 2009, since then we don't have this problem and I've cancelled overdraft in bank.

Now Paypal REALLY pissed me off - had to get merchant numbers to support credit cards directly

[GreenLabel]

Let's say that $16 bln includes all wage components, I doubt those account for majority of it though, but let's say they do, this combined with profit of $4.7 bln means cost of staff is 77% of combined figure, how many industries you know where this sort of ratio is present? How many of them have staff rewarding themselves massive part of that figure as a BONUS - not 10-15% of wage, but double or even more as a BONUS taken out of shareholder pockets.

So the shareholders are getting screwed to pay the staff. Big deal. If it were the other way around, and the staff were getting a raw deal while the shareholders were making a killing, people like you would be squealing even louder.

[MarillionFan]

The first sentence of your quote, which you also highlighted in bold, says that is not the case. "Pay and bonuses" probably includes salaries.



Anyway, loads of companies have a wage bill that far exceeds their net profit. I'd even hazard a guess that yours does.

AtW makes a profit!!!