Morgan Stanley Hikes London Banker Bonuses by up to 15%

Morgan Stanley has increased bonuses for London investment bankers by 10-15% as Wall Street investment banks kick off what is expected to be a bumper year for compensation.  

In the bonuses paid in 2025, Morgan Stanley increased payouts for European bankers by 20-25%, Financial News reported. This followed a reduction of 10-15% a year earlier. 

Wall Street compensation consultants Johnson Associates revised their bonus expectations for dealmakers during the year. Having predicted a decline earlier in 2025, they changed it to an uplift of 10-15%. 

However, Alan Johnson, managing director of Johnson Associates, told Financial News previously, that he expects many bankers to be disappointed.  

“They see the headline revenue increases of 20-30% and expect bonuses to be commensurate,” he said. “M&A has been subsidised by the broader business in recent years. Pay will be up, but not as much as people expect.” 

Financial News / January 13, 2026