Brice Wallace
Global financial services company Morgan Stanley will expand in Utah, adding 800 high-paying jobs in Salt Lake County over the next 10 years.
The announcement was made after the company was approved for a tax credit of up to $6.54 million over 10 years by the Governor’s Office of Economic Opportunity (Go Utah) board at its October meeting in Cedar City.
The company has had operations in Utah since 1997 and currently employs over 1,600 people in the state. Its acquisitions in recent years include E*Trade Financial Corp. and Solium Capital Inc., which also have long histories in Utah.
“Given the opportunities we see for our business, coupled with the business-friendly environment in the state of Utah, we have selected Salt Lake County as the ideal location to focus our growth, which … is further planned 800 new jobs over the next 10 years with the investment of $1 million, at least, in our facilities to accommodate that growth,” Douglas Wenger, executive director of Morgan Stanley, told the board. “So we see this project as a great opportunity to not only meet our business needs but create rewarding careers for our employees, present and future, while giving back to the community where we work.”
“It looks like we have tremendous support for what you’re doing in the community already,” acting board chair Jesse Turley told Wenger. “We’re grateful for your expansion within Utah and look forward to a long relationship with Morgan Stanley. Thank you for what you’re doing for our communities.”
Founded in 1935, New York City-based Morgan Stanley is involved in business securities, investment management and wealth management services. The company has seven locations along the Wasatch Front that offer corporate and institutional solutions, retail brokerage services, technology solutions, strategic services for financial advisors, banking services, wealth management operations leadership and personal financial advice. Its Global Center features two locations in Sandy and South Jordan with more than 1,400 employees.
“Utah has been a key strategic location for Morgan Stanley since 1997, underscored by the recent E*Trade and Solium acquisitions, two growing businesses with extensive history operating in the state,” Andrea Verkic Pranic, head of Morgan Stanley Salt Lake, said in a prepared statement. “We are excited to build on our partnerships in Utah while creating rewarding careers for our current and future employees and giving back to the communities where we work and live.”
The new jobs are expected to pay an average of $83,703, with total wages being $575 million over 10 years. New state tax revenue is estimated at $21.8 million during that time.
Go Utah documents indicate Utah competed for the project with Georgia; Maryland; and Quebec, Canada.
In Go Utah documents, the company said the E*Trade acquisition has created opportunities, principally within its wealth management business, “to build on the strengths of the combined team and scale up accordingly.” The company hopes to invest significantly in its digital and virtual advisory platforms as well as products and services designed for institutional clients in supporting their own employees’ full realization of their benefits through equity, financial wellness, retirement solutions and financial empowerment, it said.
“Morgan Stanley is a global pillar in the financial services industry,” Dan Hemmert, Go Utah’s executive director, said in a prepared statement. “Currently, the company employs over 1,600 people in the Salt Lake Valley. We’re thrilled they’ll be adding more employees over the next several years. Since the company first arrived in Utah, we’ve been impressed with its commitment to employees, especially in its fellowship and education programs.”
“Morgan Stanley has long been an anchor of Utah’s robust financial services industry,” said Theresa A. Foxley, president and CEO of the Economic Development Corporation of Utah. “This expansion demonstrates their deep commitment to our community and their Utah employees.”
Morgan Stanley acquired Solium Capital, a provider of software-as-a-service for equity administration, financial reporting and compliance, in 2019 for a reported $900 million, with plans to rebrand it as Shareworks by Morgan Stanley. The company acquired E*Trade in 2020 in an all-stock transaction valued at a reported $13 billion.
Morgan Stanley reported net income of $2.6 billion, or $1.47 per share, for the third quarter ended Sept. 30. That compares with $3.7 billion, or $1.98 per share, for the same quarter a year earlier. Net revenues in the most recent quarter totaled $13 billion, down from $14.8 billion in the year-earlier quarter.
Go Utah does not provide upfront cash incentives. Each year that an incentivized company meets the obligations in its contract with the state, it will qualify to receive a portion of the new, additional state taxes the company paid to the state.