Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Morgan Stanley Defectors Help Bottom Line Not Rated 4.0 Email Routing List Email & Route  Print Print
Monday, June 24, 2002

Morgan Stanley Defectors Help Bottom Line

by: Sean Hanna, Editor in Chief

The rank and file at Morgan Stanley Investment Managers does not seem to be too content. So many staffers in the investment management unit have jumped ship that the firm's bottomline slipped by $500 million, reports Barron's.

The paper said Morgan Stanley's paid $1.87 billion in compensation and benefits expenses in the second quarter. A very steep fall from the $2.34 billion it paid during the same period in 2001. The first quarter typically includes bonus-related expenses.

Of course, the fall in pay may not be entirely good news if you are a client of Morgan Stanley (though it may be good news if you are a rival money manager looking to hire help). Lehman Brothers bank analyst Mark Constant now worries about a "recent spike in employee dissension (and departures) following recent efforts to 'integrate' Morgan Stanley's historically decentralized operations, and restructured compensation schemes," says Barron's. The root cause of the dissension (and perhaps of the savings) is a change in the way employees of the asset management arms are compensated. Morgan Stanley has tied the pay in its four units --Morgan Stanley Asset Management, Miller Anderson Sherrard, Dean Witter Intercapital and Van Kampen/American Capital Management -- together. So, rather than pay being based on how a staffers' unit did, pay is based on results at the combined level. 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

4.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2020: Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use