Wall Street Firm Settles Class Action Sex Discrimination Suit
Two days ago, Wall Street brokerage house Morgan Stanley agreed to pay $46 million to settle a class action brought by female stock brokers alleging widespread discrimination in the distribution of new brokerage accounts. Three years ago, the firm paid $54 million to settle unrelated claims of gender discrimination in pay and promotions.
As part of this week's settlement, Morgan Stanley will also change its policy for distributing accounts among its brokers. Under the challenged system, brokers were rating on a "power ranking" system, which distributed high dollar accounts to those brokers who were already generating the most revenue. This system entrenched brokers who already managed the largest accounts, disproportionately burdening women. According to attorney and ACS supporter Cyrus Mehri, who represented the plaintiff class, the prior regime "institutionalize[d] historical bias from the freewheeling wild west days."
Mehri will present his experiences with this case to a conference of human resources professionals this Sunday in New York City.
As part of this week's settlement, Morgan Stanley will also change its policy for distributing accounts among its brokers. Under the challenged system, brokers were rating on a "power ranking" system, which distributed high dollar accounts to those brokers who were already generating the most revenue. This system entrenched brokers who already managed the largest accounts, disproportionately burdening women. According to attorney and ACS supporter Cyrus Mehri, who represented the plaintiff class, the prior regime "institutionalize[d] historical bias from the freewheeling wild west days."
Mehri will present his experiences with this case to a conference of human resources professionals this Sunday in New York City.
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