Morgan Stanley set aside $3.66bn to pay employees at its investment-banking and trading division in the first half, 1.4% less than a year earlier.
Bloomberg News reports that compensation at the institutional-securities unit, which includes salaries, bonuses and the cost of previous deferred awards, equaled 43% of adjusted revenue, down from 46% a year earlier.
Companywide compensation and benefits rose 3.2% to $8.32bn in the first half as adjusted revenue increased 8.4%to $16.8bn. That revenue figure excludes accounting charges known as debt-valuation adjustments. Those changes stem from increases in the value of the company’s debt, under the theory that it would be more expensive to buy back the securities.
The bank’s total compensation cost was enough to pay each of the firm’s 55,610 employees $149,631 on average for the six months, more than the $137,496 it set aside for each of the 58,627 employees a year earlier.
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