Morgan Stanley Severance Package: 2026 Guide
2 weeks per year (similar to JPMorgan structure). Calculate your estimated Morgan Stanley severance below.
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What Morgan Stanley Typically Offers
Known Severance Benefits
- βSeverance based on tenure
- βProrated bonus consideration (discretionary)
- βHealth benefits continuation
- βExecutive outplacement for senior staff
Morgan Stanley Recent Layoff History
| Date | Employees | Details |
|---|---|---|
| December 2023 | 1,600 | Performance-related terminations with standard packages |
Sources: Bloomberg, Financial Times, Reuters
Morgan Stanley Severance Tax (New York)
Morgan Stanley is headquartered in New York. Here's how severance is taxed there:
Example: A Morgan Stanley employee with 5 years of service earning $165,000 would receive approximately $47,596 gross ( $31,937 after tax in New York).
How Morgan Stanley Compares to Finance & Banking Average
Other Finance & Banking Companies
| Company | Formula | Rating |
|---|---|---|
| Coinbase | 14 weeks minimum | Standard |
| Goldman Sachs | Typically 1-2 months per year of service; MDs get more | Generous |
| JPMorgan Chase | 2 weeks per year of service (minimum 4 weeks, maximum 26 weeks) | Standard |
| Bank of America | 2 weeks per year of service + transition support | Standard |
| Citigroup | Based on tenure and level; typically 2-6 months | Standard |
| Wells Fargo | 2 weeks per year of service + transition benefits | Standard |
| PayPal | 2 months base + additional weeks per year | Standard |
| Visa | Generous packages relative to fintech peers | Generous |
Negotiating Your Morgan Stanley Severance
Strategies specific to Morgan Stanley employees:
- βMorgan Stanley's packages are more negotiable for revenue-generating roles
- βPush for prorated bonus β especially if you contributed to annual targets
- βNegotiate for non-compete waiver or geographic limitation reduction
- βAsk for extended garden leave with pay
Think Your Severance Is Too Low?
Employment lawyers have helped workers negotiate 2-5x their original offers. Get a free consultation.
Morgan Stanley Severance FAQ
How much severance does Morgan Stanley pay?βΌ
Morgan Stanley typically offers 2 weeks per year (similar to JPMorgan structure). Their severance reputation is rated as βStandardβ compared to finance & banking industry peers. In recent layoffs (December 2023), performance-related terminations with standard packages.
Can I negotiate my Morgan Stanley severance?βΌ
Yes, most severance packages at Morgan Stanley are negotiable. An employment lawyer experienced in finance & banking can typically negotiate 2-5x the initial offer, especially if there are potential legal claims or WARN Act violations. Many offer free initial consultations.
How is Morgan Stanley severance taxed?βΌ
Morgan Stanley severance is taxed as supplemental wages at 22% federal flat rate plus 10.9% New York state tax, for a total of approximately 32.9%. If you work remotely, your state of residence tax rate applies instead.
Related Finance & Banking Companies
π Free Severance Negotiation Checklist
The exact steps employment lawyers use to negotiate higher severance. Used by 10,000+ employees.