Recruiting
The bank will be in the market for several hundred currencies, equity derivatives, commodities and other traders over the next three years. The bank's securities business has recently added 350 people.
Morgan Stanley, like other firms, recently raised base salaries of some employees to make up for lower bonuses and is paying a larger proportion of compensation in stock that can't be sold immediately and can be clawed back for up to three years if the firm realizes losses on certain trading positions or investments. Members of the corporate operating committee will earn 75% of bonuses in stock, with payments subject to clawbacks and a portion to tied to the company's stock performance. Average compensation per employee was $235,193 in 2009. CEO James Gorman didn't take a cash bonus for 2009, instead receiving his pay in deferred compensation. Chairman John Mack passed on a year-end bonus for the third year in a row.
Will more advisers be jumping ship? About 2,000 have reportedly left since the Morgan Stanley Smith Barney joint venture with Citigroup began. When brokers cash their retention-bonus checks they'll have a number, which along with deferred compensation, that a rival would need to match to hire them. The package is a forgivable nine-year loan, so brokers would have to repay it should they leave the company before the end of the term. The packages range from 30% to 75% of production. About 6,500 brokers were eligible for the deal, which required production of more than $500,000 a year.
Morgan Stanley Smith Barney's financial advisers program offers training, mentoring and financial tools and technology. To apply, applicants must complete a talent assessment. Once in the job, employees have their choice of organized employee-networking opportunities, from American Indian to Latino groups and others.
For insight into the company culture, watch the video of Morgan Stanley economist Robert Feldman presenting "Career Hints from 30 Years in the Trenches." One tip: Monolingual candidates will have less luck landing a job here. Employees who speak more than one language are more cost effective when it comes to communicating with global clients.