Goldman Sachs, Morgan Stanley Staff Outside Front Office Report Low Bonuses
In a recent review of U.S. banks’ bonus structures for 2025, it appears that only Bank of America has opted to withhold details. While professionals in mergers and acquisitions (M&A) may celebrate strong bonuses, employees in support roles, particularly within operations, are experiencing a stark decline.
Impact of Bonus Changes at Major Banks
At Morgan Stanley, the situation is particularly noteworthy. Reports indicate that Asian bankers received bonuses that increased by 20%, while their counterparts in London saw a rise of 15%. However, staff in mid-ranking operations positions have been confronted with disappointing news regarding their bonuses.
One insider from Morgan Stanley commented on the changes, explaining that the revised compensation plan supposedly promised higher base pay alongside reduced bonuses for vice presidents (VPs) and above. Unfortunately, many employees found that their base salaries remained unchanged, with some receiving no increase at all.
Goldman Sachs Bonuses Vary by Division
Goldman Sachs staff members reported generally satisfactory bonuses, especially among bankers. However, morale is lower among markets professionals and those in engineering and operations, who have reported significantly lower bonuses this year. Like Morgan Stanley, Goldman Sachs chose not to provide any commentary on the issue.
Consequences of Low Bonuses
Lower bonuses can drive employees to consider leaving their positions. With a voluntary departure, banks are not obligated to provide severance, which is financially beneficial for them. Moreover, roles in technology and operations face increasing risks of automation.
Automation Trends in Banking
Bank of America (BofA) exemplifies this trend. CEO Brian Moynihan recently revealed that the bank had replaced 2,000 technologists with artificial intelligence (AI) solutions. Furthermore, BofA has streamlined its finance team by using automation processes, which do not require salaries or bonuses.
- Bank of America: Cut 2,000 technologist positions with AI implementations.
- Morgan Stanley: 20% bonus increase for Asian bankers; 15% for London-based staff.
- Goldman Sachs: Reports of decreased bonuses for engineering and operations staff.
As the banking industry continues to navigate these changes, employees in operations and similar support functions may find themselves under increasing pressure due to both compensation adjustments and the looming threat of automation.
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