Morgan Stanley lifts advisor payout grid hurdles by 10%

On 17 September 2026, Morgan Stanley communicated its 2027 financial advisor compensation plan via an internal memo from executive Vince Lumia. The bank is raising revenue hurdle thresholds by 10% across the core payout grid.

The structure maintains 16 revenue bands. Core grid payout percentages remain unchanged, ranging from a minimum of 28.0% to a maximum of 55.5%.

The changes follow strong advisor productivity. Over the preceding three years ending in 2026, average gross revenue per advisor grew 56%, and cumulative net new assets reached 1.1 trillion dollars.

In the wealth management unit, compensation expenses accounted for 52% of division revenue in the second quarter of 2026, down from 53% in the second quarter of 2025. The division maintains a long-term pre-tax profit margin target of 30%.