Morgan Stanley’s Pay Climbs as Goldman Sachs’s Falls

Morgan Stanley, buoyed by rising revenue, set aside 37 percent more money to pay employees in the first half of 2010 even as rivals Goldman Sachs Group Inc. and JPMorgan Chase & Co.’s investment bank lowered their compensation expenses.

Morgan Stanley allocated $7.94 billion to pay employees in the first six months of 2010, up from $5.78 billion a year earlier, company data show. Goldman Sachs’s first-half compensation dropped to $9.3 billion from $11.4 billion and JPMorgan’s investment bank set aside $5.3 billion versus $6 billion. All of the figures exclude U.K. bonus tax costs.