Morgan Stanley laid off a number of senior investment bankers last week and cut bonuses by roughly 15 percent in a bid to cut costs following a business slowdown, Reuters reports, citing people with knowledge of the matter.
Individual bankers were awarded different amounts depending on performance and geographic region, with many receiving a smaller paycheck for 2016, sources were quoted as saying.
Morgan Stanley, which ranked fourth for investment banking fees last year, cut more than 20 managing directors from its investment banking division globally, representing about 5 percent of the total, according to the report.
While the bank typically lets go of the bottom 5 percent of its workforce at year-end to get rid of underperformers, the cuts to senior bankers were deeper than in years past, it said.
The cuts came as global investment banking fees across Wall Street declined 7 percent in 2016 to a three-year low.
Equity capital market fees, which declined 23 percent, showed the biggest drop of all banking activities as a result of a dearth of initial public offerings.
Merger activity also slowed from record levels in 2015, with global deal volume falling 17 percent.
According to the report, Morgan Stanley’s global investment banking fees dropped 13.3 percent last year to US$4.5 billion.
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