Some 2,700 female Morgan Stanley advisors and trainees (oh, and their lawyers) just got $46 million richer. A federal judge approved settlement of the class action lawsuit six months after the women settled with the firm.
The plaintiffs’ case, which says the firm discriminated against women with respect to account distributions, compensation, training and promotions, covers those women who worked at Morgan Stanley between August 5, 2003 and June 30, 2007.
Jim Wiggins, a spokesperson for the company, says the firm will institute programs designed to advance the success of women financial advisers at Morgan Stanley." For example, a revised methodology used to determine account distribution will be made available to advisors with an explanation of the system. The firm will also appoint two psychologists to help develop diversity programs to attract and retain female advisors, and a “diversity monitor” to ensure the new policies are being implemented. The settlement terms are set to last five years. “We are please to move forward,” Wiggins says.
In 2004, the firm’s Institutional Equity Division settled with the U.S. Equal Employment Opportunity Commission (EEOC) for $54 million in a gender discrimination case.
