Morgan Stanley is reportedly raising base salaries for junior bankers by about 25%. The firm is said to be increasing the salaries for associates and vice presidents in its investment banking and capital markets units, according to Bloomberg. Alan Johnson, managing director at compensation consulting firm Johnson Associates told us that overall, the move is a good one. He says raising base salaries will give Morgan Stanley a competitive edge, helping with recruiting and morale. In fact, Johnson says it will be difficult for Morgan Stanley's competitors not follow suit. He expects other banks to do so within the next few months.
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