Despite months of turmoil surrounding Chairman and CEO Philip J. Purcell and an onslaught of offers to leave, Morgan Stanley brokers aren't budging. And most observers don't expect an exodus of reps in the coming months, either.

"There's been a slow trickle, but no more than we've seen with other firms," says Rick Peterson, who runs a self-named executive recruiting firm in Houston.

Still, headhunters are busy making overtures. "Not talking with Morgan Stanley brokers these days would be recruiting malpractice," says Danny Sarch, who heads Leitner Sarch Consultants, a recruiting firm in White Plains, N.Y.

Several other recruiters, who all requested anonymity, confirm that Morgan Stanley's reps have been heavily sought after. The company has been characterized as the No. 1 target from which to extract candidates.

But the firm's reps appear to be willing to wait out the problems. One major Wall Street headhunter says, "Tons of Morgan Stanley brokers, when you call them, say, You're the fourth or fifth headhunter to call this week. Let me tell you: We are not interested in making a move. So back off!' "

Among the reasons that reps are sitting tight: Morale in the branches has quit declining. In addition, brokers believe the company is going to win an appeal that would throw out or at least decrease the highly publicized Florida jury verdict that awarded financier Ronald Perelman about $1.4 billion in compensatory and punitive damages.

It also doesn't hurt that Morgan Stanley's investment bank continues to crank out deals, and the firm's research is still highly respected. Brokerage analyst Guy Moszkowski of Merrill Lynch says Morgan Stanley in May led investment banks with a 40% share of announced merger-and-acquisition deals. Reps may also be staying put because of possible retention bonuses if the retail unit is sold. When Wachovia Securities acquired Prudential Securities, it paid about one-third of the Pru reps bonuses worth 30% of their trailing 12-month commissions.

Morgan Stanley spokeswoman Andrea Slattery says the second quarter was one of its best in attracting new reps in several years.

And one recruiter says the firm has been bringing on even bigger producers and is on track to reach its hiring goal of 450 experienced reps this year. As of June 1, new brokers averaged $531,000 in trailing 12-month gross commissions--higher annualized production than the current reps, he says.