Recruiting and Developing Diverse Talent

Morgan Stanley is committed to developing exceptional individuals from a diverse set of backgrounds to shape and strengthen our business and bring value to our clients. In order to diverse our talent, we are proactively hiring mid-career professionals.

At Morgan Stanley, we are actively engaged in the recruitment of female talent. At the same time, we also actively create a work environment where women can be engaged and play active roles by providing career development opportunities such as networking and coaching programs, and access to female role models and senior management. Additionally, we recognize the importance of diversity in corporate leadership and actively support the development and advancement of women into senior business roles.  We have established global representation objectives to grow total women officers globally. The senior management in Japan has set the objectives for Japan and has implemented action plans locally. Within the Morgan Stanley’s group companies in Japan, we are proud to have women in senior positions such as officers, divisional heads, directors, and management committee members.

Please see 2022 ESG Report: Diversity & Inclusion, Climate, and Sustainability for more information.

Attract and hire more women through our campus and mid-career recruiting efforts to increase our female talent and pipeline of future female leaders.  Actions include:

• Aim to recruit 50% or more women in campus recruiting
• For mid-career hiring, manage the hiring process to include at least one female candidate for every open position and include at least one female interviewer

Morgan Stanley MUFG Securities’ Management Committee is 40% women, and 31% of officers at the Firm are women as of June 2023.  We seek to place more women in senior positions through:

• A robust divisional and firmwide review process to evaluate and track each division's efforts, commitments and actions.
• Regularly review data of female representation, hiring, promotion and attrition to identify gaps, shape strategy and goals, and evaluate progress.
• Focus on providing diverse talent development programs with individualized career support and sponsorship

Our compensation programs are competitive within our industry and help ensure equitable rewards for all employees through:

• Robust practices that support fair and consistent compensation, and help ensure reward decisions are based on merit
• Ongoing review of compensation decisions, including at the points of hire, promotion and mobility
• Regular assessment of our rewards structure to help ensure equity for all employees

We have a genuine interest in our employee’s professional development and wellbeing. Our greatest asset is our people and we take pride in investing in them.

• Support the physical, mental and financial wellbeing of our employees and their families
• Support working parents and caregivers through enhanced benefit programs and policies

Please see Morgan Stanley Offerings for more information.

Average Length of Service^*2

^*1  Fixed Term Employees includes Campus interns, Return To Work interns and Senior Advisors
^*2  Average length of service of full time employees at Morgan Stanley entities in Japan as of January 1, 2024

At Morgan Stanley, we hold ourselves collectively accountable for ensuring that women of all backgrounds have equal opportunity to develop and progress in their careers.

Fairness in our pay practices remains a core part of our compensation strategy. Our results reflect that women and men are being paid equally for the same or similar role, or for work of equal value.

The Firm is committed to ensuring compensation and reward decisions are fair, equitable and consistent, and are made based on an individual’s role, regardless of gender, race, ethnicity or other demographics.

When we compare the average compensation between female employees and male employees in Morgan Stanley Japan, the pay difference is largely driven by having a greater proportion of male employees than female employees in senior positions, and in businesses where market rates of pay are higher. We remain committed to our ongoing efforts listed in the Our Commitment to Developing and Advancing Women in Japan that will support achieving to reduce the gender pay difference.

The Gender Pay Difference Explained:
Gender pay difference is a measure of the average pay difference between women and men across an organization regardless of role or level. This is different from gender pay equity, which measures whether women and men are paid equally for the same or similar roles, or for work of equal value.

Pay Difference ^*1

All female employees’ average compensation as a percentage of all male employees’ compensation

^*1  Compensation paid out between April 2023 and March 2024 at Morgan Stanley MUFG Securities Co. Ltd.
^*2  Headcount of Fixed Term Employees as a percentage of all employees is 0.9%. They include Senior Advisors.