As one financial giant after another announces layoffs, Morgan Stanley's decision to spare jobs in wealth management suggests financial advisors will occupy a calm eye in the middle of the economic storm.
The investment banking giant announced global layoffs of around 2% of staff Tuesday, or around 1,600 of roughly 82,000 employees, according to a
Reached with questions, Morgan Stanley declined to comment.
A search on LinkedIn Thursday for open positions, filtered by company for "Morgan Stanley," showed that
Some 292 of the LinkedIn postings are for a "Financial Advisor Associate," while another 238 are for a "Financial Advisor." The company also posted 39 openings for a "Private Wealth Management Specialist," 38 for a "Wealth Manager" and 56 openings for a "Wealth Management Associate."
What's emerging as an employment safety net for top wealth advisors comes as the past summer's
"Some people are going to be let go,"
Nevertheless, Morgan Stanley appears to be doubling down on its
Other investment banks, including
Wall Street leaders from Morgan Stanley Wealth Management's CIO Lisa Shalett to JPMorgan Chase's CEO Jamie Dimon expressed concern in public remarks this week that the
However, financial services institutions large and small have been
That coveted segment appears, at least at the moment, to be shielded from the woes plaguing inflation-weary consumers on Main Street and from the slowdown in M&A deals on Wall Street.
Wealth management executive recruiting consultant Mark Elzweig said in an interview that the treatment of financial advisors reflected their unique place in the corporate balance sheet, compared with that of other bank employees. Whereas banking staff generally are salaried, representing a fixed operating cost that banks want to contain, advisors tend to be paid in proportion to revenue they bring in from managing client assets.
"There are always wealthy people with pools of money, and they need advice. So it's not something that's going to go away because markets are difficult," Elzweig said. Even with assets and fees declining, client interest in wealth management is expected to grow. "Many financial advisors are adding people that were formerly do-it-yourselfers, because people in difficult times need financial advisors even more," Elzweig said.
"One of the glories of being a successful financial advisor is that it's essentially a recession-proof job," he added.
"That's the difference between an employee revenue generator and an employee who's part of corporate overhead."
