# Morgan Stanley vs. Merrill: Wirehouse pay grids and recruiting compared

URL: https://www.financialadvsr.com/compare/morgan-stanley-vs-merrill
Updated: 2026-10-10
Publisher: Financial ADVSR (https://www.financialadvsr.com)

Morgan Stanley is the larger wealth business by reported client assets, with $8.08 trillion in wealth management client assets at June 30, 2026, including $6.27 trillion advisor-led, compared with $4.1 trillion in Merrill client balances on the same date. Both employ advisors on production grids, and neither publishes a current advisor headcount. Morgan Stanley's grid runs from 28% to 55.5%, unchanged for 2027 but with 10% higher revenue thresholds, while Merrill kept a 34% to 51% cash grid for 2026 and pays reduced or no credit on smaller households. Diamond Consultants counted Morgan Stanley with a net gain of 23 experienced advisors in the first half of 2026 and Merrill with a net loss of 404.

## Key differences

- Size: Morgan Stanley reported $8.08 trillion in wealth management client assets at June 30, 2026, including $6.27 trillion in advisor-led assets and E*Trade's self-directed accounts. Merrill reported $4.1 trillion in client balances and $1.8 trillion in assets under management at June 30, 2026. [1] [2]
- Ownership: Both are units of public companies, Morgan Stanley (NYSE: MS) and Bank of America (NYSE: BAC). Merrill sits in Bank of America's Global Wealth & Investment Management segment and targets households with more than $250,000 in investable assets. [3] [2] [4]
- Payout grid: Morgan Stanley's grid ranges from 28% to 55.5% and is unchanged for 2027, though revenue thresholds rise 10%; a $1 million producer keeps 44% under the current grid, Financial Planning reported in September 2026. Merrill left its standard cash grid of 34% to 51% unchanged for 2026, AdvisorHub reported in September 2025. [5] [6] [7]
- Small accounts and deferrals: Merrill's 2026 plan pays a reduced 20% on households with $250,000 to $500,000 and nothing on households under $250,000. Morgan Stanley's 2026 plan roughly halved the share of advisor pay it defers, moving more into upfront cash. [7] [8]
- Recruiting: Merrill offered top producers with $5 million or more in revenue deals worth up to 400% of trailing-12-month revenue, with up to 250% upfront and a nine-year commitment, AdvisorHub reported in December 2023. Morgan Stanley's forgivable recruiting and retention loans to advisors totaled nearly $4.9 billion at year-end 2025, typically amortizing over nine to 12 years. [9] [10]
- Advisor movement: Diamond Consultants counted a net gain of 23 experienced advisors at Morgan Stanley and a net loss of 404 at Merrill in the first half of 2026. [11] [12]

## Questions

**Which pays advisors more, Morgan Stanley or Merrill?** It depends on production and household mix. Morgan Stanley's grid runs from 28% to 55.5%, with a $1 million producer keeping 44% under the current grid (Financial Planning, September 2026). Merrill's 2026 standard cash grid runs from 34% to 51% (AdvisorHub, September 2025), but it pays only 20% on households with $250,000 to $500,000 and nothing below $250,000. The grids are reported for different plan years and aren't built the same way.

**Is Morgan Stanley bigger than Merrill?** By reported client assets, yes. Morgan Stanley reported $8.08 trillion in wealth management client assets at June 30, 2026, including self-directed E*Trade accounts, or $6.27 trillion advisor-led. Merrill reported $4.1 trillion in client balances at the same date. Neither firm publishes a current advisor headcount.

**Which firm is losing more advisors?** Diamond Consultants counted Merrill as the biggest net loser of experienced advisors among the four wirehouses in the first half of 2026, down 404, while Morgan Stanley was up 23.

**What recruiting deals do Morgan Stanley and Merrill offer?** Merrill offered up to 400% of trailing-12-month revenue to teams with $5 million or more in production, with up to 250% upfront and a nine-year commitment, according to a December 2023 AdvisorHub report. Morgan Stanley's profile doesn't list a current deal percentage, but its forgivable advisor loans stood at nearly $4.9 billion at year-end 2025, typically amortizing over nine to 12 years.

Sources:
[1] Morgan Stanley: Second Quarter 2026 Earnings Results Quarterly Financial Supplement (https://www.morganstanley.com/content/dam/msdotcom/en/about-us-ir/finsup2q2026/finsup2q2026.pdf)
[2] Bank of America: Bank of America Second Quarter 2026 Earnings Press Release (https://d1io3yog0oux5.cloudfront.net/_115fc026bfee716099bb924d2923dd51/bankofamerica/db/806/10579/earnings_release/The+Press+Release_2Q26_ADA.pdf)
[3] Morgan Stanley: Morgan Stanley Second Quarter 2026 Earnings Results (https://www.morganstanley.com/about-us-ir/shareholder/2q2026.pdf)
[4] Bank of America: Bank of America Review & Update Second Quarter 2026 (Fixed Income Investor Materials) (https://d1io3yog0oux5.cloudfront.net/_2520a086209edd7a8d0edce5657bb0df/bankofamerica/files/pages/fixed-income/2026-0714_Fixed_Income_Investor_Materials_ADA.pdf)
[5] Financial Planning: Morgan Stanley asks advisors to produce more to keep same pay (https://www.financial-planning.com/news/morgan-stanley-asks-advisors-to-produce-more-to-keep-same-pay)
[6] ThinkAdvisor: Morgan Stanley Advisors Face Higher Revenue Hurdles in 2027 (https://www.thinkadvisor.com/2026/09/23/morgan-stanley-advisors-face-higher-revenue-hurdles-in-2027)
[7] AdvisorHub: 2026 COMP: Merrill Lynch Doubles 'Small Household' Threshold to $500K (https://www.advisorhub.com/2026-comp-merrill-lynch-doubles-small-household-threshold-to-500k/)
[8] AdvisorHub: 2026 COMP: Morgan Stanley Reworks Deferred Comp, Boosting Advisors' Take-Home Pay (https://www.advisorhub.com/2026-comp-morgan-stanley-reworks-deferred-comp-boosting-advisors-take-home-pay/)
[9] AdvisorHub: Merrill Seeks 'Momentum Change' With 400% Recruiting Deals–Sources (https://www.advisorhub.com/merrill-seeks-momentum-change-with-400-recruiting-deals-sources/)
[10] AdvisorHub: Morgan Stanley Recruiting Loan Tab Nears $5 Billion (https://www.advisorhub.com/morgan-stanley-recruiting-loan-tab-nears-5-billion/)
[11] Wealth Solutions Report: Diamond Report Finds Accelerating Wirehouse Advisor Movement In H1 2026 (https://www.wealthsolutionsreport.com/diamond-report-finds-accelerating-wirehouse-advisor-movement-in-h1-2026/)
[12] Wealth Solutions Report: Diamond Report Finds Accelerating Wirehouse Advisor Movement In H1 2026 (https://www.wealthsolutionsreport.com/diamond-report-finds-accelerating-wirehouse-advisor-movement-in-h1-2026/)