- Morgan Stanley posted a record near-US$10 billion of Asia revenue in 2025, led by equity trading, prime brokerage, wealth management, and higher investment-banking fees.
- Asia bonuses rose about 20% overall, with top performers (especially in equities, trading, and investment banking) seeing roughly 30%-40%+ increases.
- Top managing directors in hot sectors may take home US$2-2.5 million total versus a typical US$1-1.5 million, after 2024 saw about 20% of MDs get no bonus.
- The bigger bonus pool was moderated by last year’s low base and management’s intent to smooth pay given share gains and a large junior workforce.
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Morgan Stanley’s strong revenue performance in Asia—approaching US$10 billion in 2025—marks a milestone for the firm in the region. Business segments that had lagged or been volatile—equity trading, prime brokerage, capital markets, investment banking—showed outsized contributions. This suggests that both the cyclical recovery (e.g., in equities and IPOs) and firm-specific execution (deal wins, advisory work) aligned to deliver a strong year.
Compensation has followed performance, but with nuance. While the average bonus rise was about 20% in Asia, senior and star performers received much more substantial hikes. Traders and top equity specialists saw increases of 30-40% or higher. That signals a firm strategy to retain and reward high revenue generators, especially in competitive markets like India and Australia. However, the company is cautious—using smoothing measures and being mindful of the high share-price impact and large junior headcount that amplify bonus-pool volatility.
The contrast with 2024 is stark: a significant share of managing directors (~20%) received no bonuses last year. Now, MDs in high-growth sectors are seeing total compensation including bonus potentially doubling or more (to US$2-2.5 million), while average compensation of US$1-1.5 million reflects both performance and the recovery in fees and trading profits. This signals restored confidence after a lean year, and may boost morale and retention.
Strategically, Morgan Stanley is accelerating toward its goal of US$10 billion Asia revenue within five years earlier than planned. Achieving that target ahead of schedule changes expectations about firm investment, regional staffing, product offerings, and competitive positioning against peers such as Goldman Sachs and JPMorgan. However, the upside appears partially capped: a large income base surcharge (from share gains), and managing the expectations of non-star performers remain open challenges.
Open questions include: whether the firm can sustain this performance into 2026 amid potential macroeconomic headwinds; whether compensation increases across the broader workforce—junior and mid-level—will keep pace; and how peers will respond. There’s also the risk of overextension in hiring or geopolitical exposure in Asia, particularly with sensitivity to China and regional regulatory risks.
Supporting Notes
- Morgan Stanley closed in on US$10 billion revenue from Asia in 2025, marking a record year for the region.
- Overall bonuses for bankers in Asia rose ~20 percent; investment bankers got 15-20 percent increases, while traders/product specialists saw higher hikes of 30 percent or more.
- High-performing managing directors in sectors like technology are expected to receive total compensation (including bonuses) of US$2 million to US$2.5 million. Average compensation sits at US$1 million to US$1.5 million.
- In 2024, about 20 percent of managing directors in Asia did not receive any bonus.
- Key revenue drivers included outsized gains in equity trading, prime brokerage, wealth management, and investment banking and capital markets fees from stock sales and mergers approaching US$1 billion.
- Although the bonus-pool has increased, Morgan Stanley has cautioned against overly sharp rises, citing share-price gains and a large junior workforce as moderating factors.
- Promotions continue: approximately 26 bankers in Asia were promoted to managing director across equity, investment banking, and fixed income in the recent period.