Morgan Stanley has toned down its emphasis on diversity in its latest annual report, reflecting a strategic shift amid changing political and regulatory landscapes under President Donald Trump’s administration.
Previously, the bank highlighted that “a diverse and inclusive workforce is important to Morgan Stanley’s continued success.”
The new report replaces that language with a focus on meritocracy, stating: “Meritocracy is at the heart of Morgan Stanley’s talent development,” and emphasizing the importance of a workforce that reflects global society and clients.
Broader Corporate Trend of DEI Adjustments
Morgan Stanley’s revised stance aligns with a broader trend among major corporations adjusting their diversity, equity, and inclusion (DEI) policies. Companies such as Citigroup have dropped diversity hiring mandates, while Goldman Sachs has scrapped its policy of only taking public companies with at least two diverse board members.
Diversity has long been a challenge on Wall Street, with Morgan Stanley previously facing scrutiny for presenting an all-white, all-male slate of candidates to replace former CEO James Gorman. However, the firm still maintains several women in key executive roles, including Chief Financial Officer Sharon Yeshaya.
Current Workforce Demographics
Morgan Stanley reported that 40% of its global workforce and 29% of its officers—comprising managing directors, executive directors, and vice presidents—are women. In the U.S., 35% of its workforce and 28% of officers come from ethnically diverse backgrounds.
While the firm maintains that it strives for a diverse and inclusive workplace, its adjusted messaging signals a recalibration in response to shifting political and corporate trends. A spokesperson declined to provide additional comments on the changes.