Morgan Stanley (MS) - Get Morgan Stanley (MS) Report reportedly has decided to bump up starting salaries in its premier positions to $100,000 a year, matching increases by JPMorgan Chase (JPM) - Get JPMorgan Chase & Co. (JPM) Report, Deutsche Bank and Barclays.
The wage increase applies to rookies in investment banking and global capital markets divisions, Bloomberg reported, citing a knowledgeable source.
The previous starting salary was $85,000, the source said. Second-year pros will see pay boosted to $105,000 from $90,000.
Wall Street firms have taken heat during the pandemic for work weeks that total as much as 100 hours for junior staffers.
That practice has been in place for decades, with newbies generally content to make the sacrifice for the potential to make millions of dollars down the line.
The report didn’t appear to affect Morgan Stanley shares. The stock rose 10 cents, or 0.1%, to end at $96.15 after dovish comments from Fed Chairman Jerome Powell on the pace of any interest rate increases.
Shares of Morgan Stanley have jumped 41% in the past six months amid the bank’s stellar financial performance. That tops the S&P 500’s 17% climb.
Earlier this month, Morgan Stanley posted stronger-than-expected second-quarter earnings, thanks to solid gains in investment banking and wealth management revenue.
Morgan Stanley said profit for the quarter came in at $1.85 per share, down 5.6% from the same period last year but firmly ahead of the Street consensus forecast of $1.65 per share.
Revenue rose 10.4% to $14.8 billion, again topping analysts' forecasts of a $14 billion.