What will a WFC/WB retention package look like?
433 RepliesJump to last post
SKBORKER…you and I are almost identical in LOS and production, but I just do not see them giving us 40% cash upfront. I truly hope I am wrong, but my expectations are low.
Wow! Looks like 500k is the new piker level, according to BAC, who is now calling the shots. What a jump up. I remember just a few years ago some of the big firms would bring out a stroking machine for the 500k guy. Wonder what the deals are going to look like over at UBS, C, MS.....for the MER 475k producer?
The problem is, now that the banks are calling the shots, 250-500K advisors are not that great. from their perspective, someone should be doing 250K in their first year. How many wirehouse brokers who don't have a relative in the business break $150K their first year?Not many.
I did about $85k my first year at AGE and I qualified for every advanced training program, most bonuses, etc. That would get me fired at any bank. Now the people who are used to bank broker numbers are setting the payouts and retention package for wirehouse brokers.one more thing, a buddy of mine had a $400k bank broker join his AGE office. left after 9 months - total production of $37K!
I think you’ll see mass exodus from the AGE legacy side if the retention package is not adequate. I know we have at 6 people in the branch who are looking to jumping ship to ray jay in the next few months. I have never been so shameful to say my companies name to prospects.
I guess a 14 month presidents club producer will get zip. Kinda sucks after all the BS I have had to deal with. Guess I’ll just keep my head down and move forward.
WFC has been paying and encouraging tellers to get their 7 the past year. From my buddies at the bank it has cost him over 100K in gross the past 12 months that 4 tellers in the branch already have their 7 and dont sent the customers to his corner anymore. Also recently any account under 50K for 90 days becomes a branch account, any trades done or trailers go to the branch. He says now hundreds of 100K accounts now heading to branch account status due to market pullback… Looks like like WB/WFC reps going from the frying pan into the fire.
Seen that many times. Think the ratio is about between 5 and 10-1 for what a guy does on his own vs what he will do at a bank. Guy doing 100K at wirehouse will do 500K to 1 Mill. at a bank and the reverse for guys who leave the bank. But that being said from what i here the people I know who work as bank brokers have to put up with so much b/s it drives them to the brink of walking all the time. At the bank they look at you as being replaceable all the time regardless of your numbers, no ego stroking, no suck up managers etcone more thing, a buddy of mine had a $400k bank broker join his AGE office. left after 9 months - total production of $37K!
AGE Legacy FC here:
Just my two cents: The retention package will be apply to all FC's just like the last retention package. That said it will be structured to reward increases in production, asset gathering and related activities. The reason it will apply to everyone is so WFC can retain all possible client assets. High production gets the best deal but everyone gets something. It's the culture that Wachovia got through the AGE acquisition and I believe they want to maintain it. The squeeze will come in the form of changes to the grid. I believe they will be targeting low producers and the more senior brokers (the old guys still flipping stocks). They want them out but can't fire anyone due to the threat of lawsuits. They'll kill with the grid and will force older brokers into book transition plans or teams. They want to increase profits and the best (and fastest) way to do that is through reductions in FC headcount. Bottom line: everyone gets something now only to be killed later if you don't produce.[quote=Herman Munster]AGE Legacy FC here:
The squeeze will come in the form of changes to the grid. I believe they will be targeting low producers and the more senior brokers (the old guys still flipping stocks). They want them out but can't fire anyone due to the threat of lawsuits. They'll kill with the grid and will force older brokers into book transition plans or teams. They want to increase profits and the best (and fastest) way to do that is through reductions in FC headcount. Bottom line: everyone gets something now only to be killed later if you don't produce. [/quote] sounds just like the place we all dream of working!I would say that a 20% payout on the first 10k production will wipe out alot of fc’s. When are they going to change the AGE fc’s to the WB grid?
I think that everyone goes to the new grid on January 1st. I think its supposed to be released next week.
Just got back from H/O. Wach reps go on new pay plan Jan 1. Age legacy will be paid there average production for Jan/Feb and start new pay plan March 1.
Kool aid makers say: Should be annouced this week. Best of both plans, most will be happy, 16 positives to new plan and only a few negatives. Also when asked about retention package ? Kool aid makers were quick to agree there would be one. expect to be out within 60 days if not sooner. Growth of book and recurring revenue % likely to be tied to retention bonus. Disclaimer: this was the same place Bob B said he would not sell AGEAll managers are in HQ for a jt WS/AGE managers conf. Grid will be presented to the BOM’s and then rolled out shortly. It will basically look like the present WS grid, 20% on the first $10k, 50% thereafter. It WILL include ticket charges to the FA on stock and options.
That will make the fee based folks SO happy about the change this spring to pay out fees on a monthly basis rather than a quarterly basis. Now more of the fees will hit at the 20% level rather than the 50%. Sweet. Wonder how much that alone will cost fee based folks?
I sure do miss having my chain jerked by Danny and the Dominoes.
I am not sure how the "new math" will work but, I typically avg about 37-39% payout/mo...if you do above $30k/mo, it should be an increase.
[quote=Morphius]That will make the fee based folks SO happy about the change this spring to pay out fees on a monthly basis rather than a quarterly basis. Now more of the fees will hit at the 20% level rather than the 50%. Sweet. Wonder how much that alone will cost fee based folks?
I sure do miss having my chain jerked by Danny and the Dominoes.
[/quote]
I dont know that it will be a big difference…if you do mostly fee based under the WS plan you would have one month with a really high payout and 2 with super low payouts, so I would think for most it would avg out the same.
ex.
360k producer (Crest Club)
30k per month = 40% payout
50k quarterly (fees) and 11k each month in between =30% payout
Looks like monthly fees works better doesnt it?
It really matters not either monthly or quarterly fees:
Say you did 10k, 10k, 80k… for the quarter vs. 33.333k, 33.333k, 33.333k…
10k @20% = $2000
10k @ 20%= $2000
80k @ 20% first 10k and 50% next 70K = $37000 total = $41,000
or
33.333k @ 20% first 10k and 50% of the remaining 23.333k = $2000 + $11,666 =$13666 a month…
Times 3 = the same $41,000!
What matters will be the ticket charges to the transactional guys. Or any other surprises they may spring. The high end FC’s will still be taken care of at the expense of the low end.