Morgan Stanley boosts managing director ranks after dealmaking revival, memo shows

Electronic signs are shown at Morgan Stanley headquarters on March 4, 2021 in New York. (AP Photo/Mark Lennihan)

Morgan Stanley elevated 184 employees to the managing director rank this year, up 6 per cent compared to 2025, according to an internal memo seen by Reuters on Wednesday, as dealmaking rebounded across the industry.

The promotions, typically occurring in January, have increased from 173 last year, with 70 per cent focusing on revenue-focused roles, and those promoted had spent an average of 11 years at the Wall Street powerhouse, the memo said.

Institutional Securities, which houses the bank’s flagship investment banking and trading operations, accounted for the largest share at 48 per cent of the promotions, followed by investment management and wealth management at 12 per cent and 9 per cent, respectively.

The investment banking environment improved markedly in 2025, with dealmakers seeing a resurgence in large mergers and acquisitions as well as multi-billion-dollar initial public offerings.

Total global investment banking revenues crossed US$100 billion in 2025, the first time since the record year of 2021, according to data from Dealogic.

Wall Street banks expect the industry to have another strong year as equity markets hit record highs, interest rates decline and antitrust scrutiny of large deals eases under the Trump administration regulators.

Bank of America promoted 394 employees to managing director roles in December, Reuters reported, citing a source, while Goldman Sachs said in November it will promote 638 executives to managing director roles in 2026, its highest number since 2021.

At Morgan Stanley, women made up 27 per cent of managing director promotions, while 31 per cent of U.S.-based promotes were ethnically diverse, according to the memo.

Banks across Wall Street have stepped up efforts in recent years to promote more women and racially diverse employees into senior roles, amid longstanding criticism over representation at the top of the industry.

Reporting by Nathan Gomes and Manya Saini in Bengaluru and Tatiana Bautzer in New York; Editing by Shilpi Majumdar and Vijay Kishore, Reuters