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What will a WFC/WB retention package look like?

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Oct 12, 2008 2:38 pm

This thread seems to revolve almost entirely around FA’s being disgruntled because of mergers, acquisitions, news headlines and future uncertainties. Those that are with some of these companies making the headlines want to get paid for doing nothing more than “staying in their seats”. I have heard nobody mention poor investment platforms, research or technology. These are the tools that you use to assist your clients. THAT is your job and what you should be paid for! If you are not happy with your current B/D, then leave. If I were a client of yours, I would not care about whether or not you received a check to stay, I would want to know how your leaving benefits ME, the client. Many of these large firms made investments over the past years that allowed them to pay us larger bonuses, large up front cash incentives and P/S contributions. We did not complain while that was going on. These same investments have collapsed, placing many firms in jeopardy and getting a lot of negative press and NOW some want to be paid again just to stay. Guys and gals, that is a big part of what is wrong with our industry. We always want to get paid for things. We get paid, handsomely I might add, for managing assets. If you are not happy, make sure the reasons focus on what is best for your clients and not yourself. (ie. Some say they should receive compensation for putting up with the turmoil of a merger or for numerous client questions. How does receiving a check make things better FOR THE CLIENT?). If your home office support is lousy and it is affecting how you serve your clients, make a change to a company that has great home office support. Bottom line: Don’t stay for the wrong reasons and leave only for the right ones. Expect to get paid for managing assets and expectations, nothing else.

Oct 12, 2008 5:09 pm

In this environment cant believe anyone would sign anything to stay anywhere for more than a week.

Oct 12, 2008 7:17 pm

On Friday, Danny Ludeman did say that a retention package is appropriate any time there is a change of ownership.  However, I can’t see this package being that large. 

  First, as a legacy AGE rep, I am already locked in for 5 1/2 more years before my retention loan is forgiven.  Second, when A.G. Edwards was purchased, we didn't want to be purchased and we didn't want to change platforms.  So, to keep us, we needed a good retention package.  The Wells purchase, on the other hand, is welcomed by FAs.  Also, Wachovia Securities gives Wells significant entree' into the brokerage business (They own HD Vest which is merely a platform of having CPAs sell mutual funds to their tax clients.).  So, the Wachovia Secuties platform probably won't experience many changes.  Third, with the economy being so weak, I think upfront deals may have to come down some.  Having said all that, I hope the deal is a sweet one, but I would have to guess that the average FA will get in the vicinity of 25% of trailing twelve gross.  Just my thoughts.  I could be way off. 
Oct 13, 2008 12:33 pm

I do not believe there will be different packages for leagacy AGE and WB advisors.  They are trying to pull the team together, the last thing they should do is treat them differently.

  Everyone will get the same deal is my prediction.
Oct 13, 2008 1:47 pm

[quote=Go_Long]I do not believe there will be different packages for leagacy AGE and WB advisors.  They are trying to pull the team together, the last thing they should do is treat them differently.

  Everyone will get the same deal is my prediction.[/quote]
Go_Long,

Take a breath.  Your obsession with what you and your WB/AGE bretheran may or may not be offered is understandable but does you no good.  All your predictions and huffing and puffing about what they should do or better do does nothing. 

What will be, will be, and once they decide what they will offer, you can decide to leave if you find it insufficient.  

Oct 13, 2008 5:24 pm

um, you’re wrong. They’ve been treating you differently since day one.

Oct 13, 2008 6:00 pm

Thanks for the concern but I don’t need to take a breath, and it’s not an obssession. Just normal curiosity.

  Take care,
Oct 13, 2008 9:48 pm

My prediction is that with all the deals still going on out there (I'm Legacy AGE and was just offered 100% plus bonus from Janney Montgomery and 100% + performance payout from RBC), we will still receive a nice retention from WFC.  Well Fargo is a highly respected firm and I'm sure they will want to retain the top talent (maybe even the top 2/3rd like the BAC/ML deal).

  Also, I would assume the top 2/3 would just include Crest Club ($350k or more).  Thoughts?
Oct 13, 2008 9:54 pm

100% + is solid unless production exceeds $500k, at which point 125%-150% cash + back end is out there.

WFC retention will be probably applicable for $350k+ producers with it being tiered up to pay out max 35-40% over 3 or 5 years.  The retention will not be able to compete with other firm’s transition deals, but will incent an otherwise loyal and happy FA to stay aboard.

Oct 13, 2008 11:03 pm

My what a nice little thread I started!

  I think fc's have been focusing on what this package might look like because the market had sucked so bad up until today that it allowed us to focus on something positive.
Oct 14, 2008 5:10 am

I think it will be close to what Merrill gets. Then we will be so expensive that the other Firms can not move us . Profit Formula and Finet will grow if we are allowed to move and keep retention. Pru and recruits got front money or retention a long time ago. It all works out the same. If you are making  up your mind based on money …you will stay…says Warren.

Oct 15, 2008 11:18 pm

I am looking at selling my old car to Car Max because it has deteriorated over the years and psychologically I would be relieved to dump it. Might take a mini bath on the sale but good ridance. I am coming to the conclusion that my old car is similar to WS.

Oct 22, 2008 4:18 am

we had another team in cali transition to LPL .   More to come if no package.  

Oct 22, 2008 2:34 pm

Guys, if Wells uses the BAI retention for ML as a guide, everyone over $500k is going to be very disappointed.  Those under $500k are going to be left on the sidelines I hear.  There’s a decent chance there’s a small wave of movement out on the bad news but I doubt many move. Too many FAs I talk to just don’t have the stomach to deal with the transition. Interestingly enough, I think it’ll be mostly $750k+ guys who jump and they can get seriously paid elsewhere still.  Nobody’s paying much for the smaller FAs right now. 

Oct 22, 2008 3:18 pm

WFC/WS retention will be small if any…the BAC deal will set the bar.  All this talk out of Danny about a retention bonus is just that, talk.  It will be small if any.  For some, it will be the final nail in the coffin.  With deals on the street going down, there will be many that try to recoup some $ by leaving sooner rather than later.  Like it or not both BAC and WFC are in the drivers seat for several reason: 1. The market sucks in case you haven’t noticed. 2. Deals are already slipping a little. 3. They realize that they will be Gov’t appointed “survivors” and will use that as leverage.  4. The banks are notoriously cheap and beleive that we are all overpaid prima donnas. 5. There attitiude is, “go ahead, I dare you to leave.”

Many will leave, some will stay.  I hear that the AGE side of things will get very interesting after mid January.  Lots of changes in HQ will be occuring.
Oct 22, 2008 5:44 pm

In my opinion, you guys at Wach/AG are floating on pipe dreams. There will be no retention package. Seriously. They just doled one out a year ago. Plus, can you imagine the PR nightmare that ANOTHER retention package will cause?

Oct 22, 2008 6:28 pm

[quote=shredder] 4. The banks are notoriously cheap and beleive that we are all overpaid prima donnas. [/quote]

This is a key idea here… the banks WILL try to break you guys. There is now way banks will let FA’s make more than their CFO’s, CEO’s, COO’s etc.

Oct 22, 2008 6:34 pm

I have to admit, you guys are not exactly making my day with this news.  I think I will go with the “ignorance is bliss” approach.

Oct 22, 2008 6:42 pm

I’m fairly certain this won’t be a popular opinion, but as someone on the outside of the AGE/WB/WFC or the BAC/MER mess looking in, why do you feel you’re entitled to several hundred thousand dollars just to stay in your seat (particularly you AGE guys who just had a bone thrown to you 18 months ago)? Maybe a little more gratitude that you still have a job at this point and a little more focus on the fact that your clients are getting killed by the market and are much more concerned with their portfolios than they are you, which company you work for, or which company is buying that company. Seems like that’s what you get paid for. 

Oct 22, 2008 6:49 pm

It’s not so much a feeling of entitlement as a feeling of “Oh my god… please… not again!”