Photo: Son of Groucho via Flickr
For most people working at banks, pay is down.Average pay at Goldman and JPMorgan dropped in the first three quarters of 2011.* Pay at Morgan Stanley rose slightly — up 6% from last year’s compensation pool.
But compare the average employee pay at Morgan with average pay at its 2 big rivals (for the first 9 months of the year) –
The average pay at Goldman: $292,836
The average pay at Morgan Stanley: $202,608
The average pay at JPMorgan: $289,611
Pay at Morgan might look like the worst of the bunch, but that’s just because the average pay for most of employees is actually a lot lower — while bankers, traders, and brokers make a lot more on average.
Brokers at Morgan (30% of employees) earned $363,194 each on average in the first 9 months of the year. As for bankers and traders, Morgan Stanley doesn’t report how many work in the unit, so we can’t find an average. However Morgan paid those employees 38% of revenue. At Goldman, 44% of revenue was divided up between all of the firm’s employees. So we’re guessing pay for Morgan’s traders and investment bankers, who work in the firm’s institutional-securities unit, is more, too.
Apparently some people think that’s bad news for Morgan Stanley. From the former hedge fund manager and founder of Hedgeye, Keith McCullough writes on Twitter: Bath, Maine Focus Group on Morgan Stanley’s comp ratio: “they know its coming – they’ll pay themselves this time before the fall”
*Of course the chief contributor to the drop is lower bonuses. Some people at Goldman are expecting about 25% of last year’s bonus.