Paying back retention bonus?
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Has anyone themselves, or does anyone know of any Legacy AGE brokers who have left recently and paid back the retention bonus? If so, did Wachovia take any legal action or TRO's to try and block the solicitation of clients even after the bonus was repaid, or did they just stay hands off?
I left Friday and was called by my old manager today regarding the bonus. They simply wanted to know when i was planning on sending them the money. They gave me a final balance. There was no mention of holding up transfers.
Are you planning on paying the "asked" for balance or planning to make a deal with them.I left Friday and was called by my old manager today regarding the bonus. They simply wanted to know when i was planning on sending them the money. They gave me a final balance. There was no mention of holding up transfers.
I am talking with the legal advisors of the new firm this week and get their opinion. At this point i just want to get on with my business and am inclined not to get into a spitting contest with WS.
I’m planning on paying back the balance, I too just want to get on with my business and do not want a spitting contest either. I just want to be able to bring my clients along. I have had my attorney review the retention paperwork and his only concern with paying the money back is the way the paragraph on the non-solicitation is worded. He feels there is some ambiguity in the way they define a one-year period and repayment of the loan, and is concerned that even after the loan is repaid they may try and argue that there is still a one year non-solicitation. I’m curious about what the recent behavior of the firm is.
I believe that as signers of the protocol that as long as we follow the protocol rules WS will not try and stop you from taking your clients.
We had a guy leave our office a few weeks ago. He has transferred most of his book already. I have not spoken to him since he left, but at the pace the accounts are flying out the door, I am guessing he had no problem with WB’s legal department.
Too many FC’s leaving for the legal team to keep up with. I have been told that about 1500 AGE FC’s have left already and they are still going at the rate of 75 to 100 per month.
My new firm (SF) has a person who handles this and I hear they are extremely familar with the whole WS pay-back procedure. Basically the amount owed for the Wachovia Securities Promissory Note was deducted from the new Stifel Demand Note and I kept the difference. SF mailed them a check and I did absolutely nothing except answer an email to someone at SF’s HQ.
A letter was mailed from Wachovia Securities; 10700 Wheat First Drive; Glen Allen, VA from a Senior Adjustor in the FA Collections Dept. It stated: "The Note due specifies that if you leave the employ of this firm for any reason, the balance owed by you shall be accelerated and become immediately due and payable." Continues with: "Please take note that the Nonsolicitation Covenant paragraph of the Promissory Note provides - In consideration of the amounts advanced by Wachovia or any successor company ends for any reason before the entire amount of this Note has been paid in fuill, FOR A PERIOD OF ONE YEAR THEREAFTER, you will not solicit, directly or indirectly, the business or accounts of any of the customers of Wachovia (a) serviced by you during your emplyment with Wachovia or (b) whose names became known to you during your employment by Wachovia until such time as you have paid Wachovia the remaining unpaid principal balance and accrued interest then owed under this Note. This nonsolicitation covenant will terminate and be of no further force and effect after the remaining unpaid principal balance and accrued interest due under this Note have been paid in full pursuant the terms hereof." (All caps and bold in the letter). Also states: "You acknowledge that a breach of this nonsolicitation covenant may result in Wachovia or any successor company suffering immediate and irreparable harm, and you therefore consent to the issuance of a temporary restraining order or other injunctive relief to enforce the terms of such nonsolicitation covenant." Finally: "Please be advised that if this matter is not resolved within ten (10) days of the date of this letter, Wachovia will initiate proceedings against you in order to secure payment. We will claim the full amount due, plus interest, attorney's fees and all costs and expenses incurred during arbitration." The End, and the Legacy AGE rep moved on and had a much better life.....[quote=Kendall]
A letter was mailed from Wachovia Securities; 10700 Wheat First Drive; Glen Allen, VA from a Senior Adjustor in the FA Collections Dept.The End, and the Legacy AGE rep moved on and had a much better life.....[/quote]
And yet...I can't help but wonder if his new firm also has an 'FA Collections Dept', and why anyone would continue to subject themselves to a business model with that mindset.....
That would be a stunning out flow of rep's if it is accurate. Imagine what will happen after the retention packages (or lack of) are released. They may loose more than 3% of the reps they want to keepToo many FC’s leaving for the legal team to keep up with. I have been told that about 1500 AGE FC’s have left already and they are still going at the rate of 75 to 100 per month.
[quote=ezmoney]do not pay back the balance. you can negotiate paying back only 65-70%. [/quote]
Are you predisposed to trying to screw everybody or just B/D’s?
Has anyone got nailed with a TRO leaving Wachovia recently? If so, how long did it take to get hit with after leaving?
My understanding is that individual brokers leaving has been uneventfull. However, when an entire branch (or most) goes it is a different deal.
That is the jist of what I am hearing too. They might need to hire accountemps in St. Louis to keep up with the departures.
That was pretty good Gordie. However, I think AIG needs to hire all the AccountTemps to handle all of their outgoing 1035’s. I have a few in process and have been waiting nearly a month for them to x-fer. I called AIG and they said they were simply overloaded with all of the requests and all the extra help was out of town at some junket or something like that…
[quote=Fortune1]Too many FC’s leaving for the legal team to keep up with. I have been told that about 1500 AGE FC’s have left already and they are still going at the rate of 75 to 100 per month.
That would be a stunning out flow of rep’s if it is accurate.
Imagine what will happen after the retention packages (or lack of) are released. They may loose more than 3% of the reps they want to keep [/quote]
Again, if this is even close to true, it makes it very difficult for WFC to low ball on retention unless they just do not care. Its clear that BAC was only interested in keeping the top end of MER producers because that is who they paid. I dont know the numbers but I am going to assume that the population of producers doing north of 1MM is fairly significant.
If you look at the top 100 FA’s at WS (the run includes top AGE brokers) 1.3 million in production gets you into that group. There is a very large group of FA’s producing 400-800 if you ignore those people, you risk losing the firm.
Easy enough to get at least an idea of how many AGE FC’s have left. Look at production profile and see how many FC’s are left. take in to account that WS changed the way the total number of producers is calculated to include anyone in the branches that had any production. Feb. of 2007 there were about 6600 FC’s and there are now about 5600. Figure they added a few hundred with the change in figuring who is included, add in hires and 1500 may be conservative.
It takes over 30 days for Wachwards to send you your letter. You’re skating on thin ice if you solicit before then. You pay what is due, there is no room to bargain.