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Morgan Stanley Names 130 Managing Directors, Fewest in 18 Years

It's the smallest class of managing directors in 18 years as the bank looks to cut costs.

Morgan Stanley  (MS) - Get Report named 130 of its personnel to the firm’s top title of managing director, the smallest number promoted to the lofty position since 2002. 

The investment bank is seeking to cut compensation costs, just like its brethren in the industry.

When Morgan Stanley rival Goldman Sachs  (GS) - Get Report last promoted personnel to the top rank of partner in November 2018, it named only 69, the smallest class since 1998.

As for Morgan Stanley, it named 145 managing directors last year and 153 in 2017, Bloomberg reported. The number 10 year ago surpassed 200.

Women accounted for 25% of the 2020 elevations, putting their share of the managing director rank at a record 21%, a knowledgeable source told Bloomberg.

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As for geographic breakdown, 58% of the new managing directors came from the Americas, 22% from Asia and 20% from Europe, the Middle East and Africa, according to Bloomberg. As for ethnicity, in the U.S., 17% of those promoted are Asian, 4% are black and 4% are Hispanic.

Morgan Stanley’s fourth-quarter earnings are scheduled for Thursday.

Analysts surveyed by Factset expected Morgan Stanley to report fourth-quarter earnings of $1.02 a share. 

Shares fell 0.49% on Wednesday to $52.60. The stock has climbed 24% over the past year, compared to 28% for the S&P 500 index.

The author of this story owns shares of Goldman Sachs.