500 or bust?
3938 RepliesJump to last post
it's 50bp of T12 into the 4front program....basically DL spit in your eye. "Go ahead, leave, I dare you....", DLCAN ANYONE ACTUALLY TELL ME WHAT DL ACTUALLY SAID AND HOW WE CAN MAKE 50% OF OUR TRAILING 12. I SPOKE TO 5 BROKERS AND NO ONE UNDERSTANDS ITS LIKE THE GIETHNER SPEAK
THAT STILL DOESNT TELL ME MUCH. HOW DO YOU GET TO THAT? WHEN IS IT PAID? HOW LONG IS THE NOTE ON IT? 4 FRONT WAS 25 PLANS GET DEFFERED COMP 50 PLANS GET MORE DEFFERED COMP AND SO ON. SO 25 PLANS YOU GET WHAT % OF T12. WHEN DO YOU GET THE MONEY? HOW LONG OF FORGIVABLE LOAN?
SO A T12 OF SAY JUST FOR EASY NUMBERS OF 1 MIL YOU DO 25 PLANS AND GET 25K. IF THAT IS WHAT YOU ARE SAYING THAT BLOWS
Smith Barney Retention Bonus Comparable To Merrill’s
Morgan Stanley’s retention package for Citigroup Inc.'s Smith Barney brokers is expected to resemble the bonus that Bank of America Corp. shelled out to Merrill Lynch & Co. brokers in October.
Morgan Stanley and Citi announced late Tuesday that they have come to an agreement for a joint venture called Morgan Stanley Smith Barney, which will combine Morgan’s 8,000 brokers with Citi’s 11,000 Smith Barney advisers.
Morgan Stanley will be paying Citi $2.7 billion in cash for a 51% stake in the deal set to close in the third quarter. The Smith Barney brokers are likely to be more affected by the venture than their Morgan Stanley counterparts because Morgan would be taking the majority stake in the combined entity.
But as with Bank of America’s retention deal with Merrill Lynch, brokers at both firms will be getting a bonus to stay on board, according to people familiar with the situation.
A Smith Barney spokesman declined to comment on the retention package.
“The level of disruption the brokers will endure determines what kind of retention package the firm needs to offer to blunt the urge for brokers to leave,” said Andrew Tasnady, compensation consultant at Tasnady Associates.
Brokers and other industry professionals are all speculating how many changes will be forced on advisers at each firm and how they will be compensated for that.
Because the Merrill Lynch retention bonus is the most recent package offered from one major firm to another, it serves as a data point for Morgan Stanley and Smith Barney, Tasnady said.
The Bank of America-Merrill package offered BofA brokers who brought in at least $350,000 annually a bonus ranging from 20% to 50% of production, with the top-tier brokers producing $2 million and up getting the 50%.
The Merrill brokers bringing in $500,000 in annual commissions and fees received a percentage of their production in cash up front in return for staying at the combined firm for seven years. The $1 million-and-up producers got 75% of their production in cash up front. Those who produced $750,000 to $999,000 received 50%. And the $500,000-to-$749,000 bracket got 25%.
This deal caused a lot of animosity among Merrill brokers bringing in less than $500,000 who thought they too deserved an upfront cash award. But the move was seen as an intentional effort to push out these lower-producing brokers as the industry trends toward a high-net-worth environment.
Morgan Stanley Smith Barney and will be led by Morgan’s co-president James Gorman as chairman. Citi’s Global Wealth Management president Charles Johnston will serve as president of the company.
Gorman has a reputation in the brokerage industry of focusing on the top producers and opening the door for the lower end to leave. His strategy worked wonders during his three years heading up Merrill’s brokerage force as well as his past three years leading retail brokerage at Morgan Stanley.
Analysts think Gorman is a good man for the job, as he has experience turning brokerages around. But the Smith Barney brokers are getting anxious.
“I haven’t heard anything about a retention package, so I’m nervous. Business is going to be down this year, and it’s just such a tough time already,” said a Smith Barney broker in the Southeast.
Smith Barney has already downsized its branch offices over the past few months, closing some and consolidating others. Some brokers and especially managers worry about overlap with Morgan Stanley causing layoffs.
Questions as to when the two firms would integrate offices and brokerage platforms remain. However, it generally takes many months to hammer out integration on such a large scale.
For example, Wachovia Corp. acquired A.G. Edwards in June 2007, but wasn’t set to complete the integration until February 2009.
Some Smith Barney brokers are starting to compare notes with former colleagues who are now at Morgan Stanley to get an idea of how the technology, investment platforms and client fees differ between the two brokerage houses.
The cultures of Morgan Stanley and Smith Barney are said to be more similar than those of Bank of America and Merrill Lynch, making this transition a bit less chaotic.
At Wachovia, brokers are getting impatient at the thought that Smith Barney advisers might have a retention bonus in hand before they do, even though Wells Fargo & Co. agreed to acquire Wachovia more than two months ago.
“I have been a broker for more than two decades and have never seen a firm buy another firm and not attempt to retain the brokers,” said a Wachovia broker in the South.
A spokeswoman for Wachovia said discussions about stay bonuses are ongoing and no decisions have been made. She couldn’t confirm that the brokers will receive a retention package at this point.
Wachovia’s Chief Executive Danny Ludeman promised brokers news of a retention package by Thanksgiving, and then by the first week of January, several brokers said. But they still have heard no word about their bonuses.
“Danny Ludeman has been great about addressing the brokers with conference calls since the merger, but he’s never given us any reassurance about our retention package,” said a Wachovia broker in the Northeast. “I’m starting to think we won’t even get one.”
here’s what danny said on the conference.
blah blah blah blah difficult environment blah blah blah client are down 40 percent blah blah blah media coverage blah blah blah envision blah blah blah bend over and take it.I took a heck of a lot more than 10-25% when I left and even today, I still have a few accounts trickling in. Of the assets I targeted as desireable, I took well over 90%. A couple of reasons that bank numbers appear low is that (1) some assets are by necessity, sticky assets, such as those where the bank is named as a trustee and (2) by choice, many bank brokers leave less desireable clients behind (such as the CD rate whores that banks make you service.) The supposition that banks are very good at retention is a myth in my world. Sell yourself and manage the relationship. Good clients will find you when you leave. You want a retention bonus? Go independent and your 70% payout will take are of your retention bonus each and every year.I posted a while back and knew when they moved ISG out of WS to WF Wealth that there would be no retention. Wells is a Bank, and Banks don’t pay…they could give a sh&t if you leave, you will only take 10 to 25% of your assets…these boys have this down to a science…
10 to 25% ???????? I hate it for you. If(when?) I leave I'll take 90% and leave them the shit.I posted a while back and knew when they moved ISG out of WS to WF Wealth that there would be no retention. Wells is a Bank, and Banks don’t pay…they could give a sh&t if you leave, you will only take 10 to 25% of your assets…these boys have this down to a science…
[quote=whartonkiddie] Pruwacitiwefarubs is the new name. No retention is the new game.
[/quote]
Looks like I got the name wrong… retention though, I nailed it.
Sorry wirehouse rats. Now you get to yell the old ‘I’m leaving’ battlecry, since you were paid nada. Next up… backpeddling your comments that Wells was a good firm, trying to telegraph to your bank’s (did you get that, the BANK’S) ‘customers’ that you are prepping the stagecoach for your exit.
Time to grab your ankles fellas…
custom branding…sick of mgmt…fire them later if we want, and have no physical move…works for us right now
[quote=skbroker]
are there any deals for 500k t12 los 8. Thanks
[/quote] Yes, you get the piker deal now. You could have got 100%, now when you say your from WS/AGE you get the "Special Deal" since they know about 2000 people will be on the market. Maybe you get 30-40%.[quote=nestegg][quote=CutterJon]Fizz…all these banks have “down to a science” is how to blow up an organization.
We're going FINET on March 20..our branch is closing because they lose us. Only take 10 - 25% of our assets with us?....whatever[/quote] Why do want to still keep that horrible name attached to your biz?[/quote] we aren't...custom branding....sick of mgmt...fire them later if we want, and have no physical move...works for us right nowi was just told by my rm that if you have the accounts in your book and can do 100 envisions for households over 250k they can be house holds with plan of records already you just need to modify them you can get up to 50% trailing 12. also if you hit the bogies before the pay date you can get a loan for the money. and the deals are 5 yr deals there is no fee based growth linked to the bonuses. Thats not that bad if you are already doing envision. also you will have to sept 2010 to get as many as you can. the bonus will start with 25 plan then more money for 50 even more money for 75 and top payout at 100 plans
Isn’t it amazing that Morgan is announcing (stop me from uttering the words) a Retention Bonus for the Smith Barney brokers. What has it been just weeks from the deal being announced. That says volumes about Wells Fargo, Luderman, et.al. MEOW! Who are these guys. I can max out this deal with 1/2 my trailing. But, come on, please. The Morgan deal is up to 105% of trailing. Hello?
Can you re-state this to clarify? I have perhaps 5 Envisions now. Have not really been impressed with program. Is it simply doing Envision plan, or does it onvolve other items (lending, etc)?i was just told by my rm that if you have the accounts in your book and can do 100 envisions for households over 250k they can be house holds with plan of records already you just need to modify them you can get up to 50% trailing 12. also if you hit the bogies before the pay date you can get a loan for the money. and the deals are 5 yr deals there is no fee based growth linked to the bonuses. Thats not that bad if you are already doing envision. also you will have to sept 2010 to get as many as you can. the bonus will start with 25 plan then more money for 50 even more money for 75 and top payout at 100 plans
Reading through the last 5 pages of this thread actually made me bust out laughing, as I understand it you Wells guys have a financial plan software named “envision”.
The firm will compensate you based on the number of plans that you guys write?!?! is that right? There's another firm out there that operates on the same basis..the name of this firm is called...Ameriprise! I specualate that Wells is simply ramping up all you guys to "train" you to do financial plans for your clients in order to "orient" you to the Ameriprise way of doing things. Don't be surprised if another shoe on this sad saga plays out & you all find yourselves as Ameriprise financial advisors one day!!!i miss wrote that here is how it will work
do 25 plans either new ones or old ones that are already plans of record and update them get a sign service agreement that basically says that you will contact the client 6 times a year you will get 25bps of all the assets of those 25 households combined
do 50 plans you get 50bps of the combined assets of all 50 households
do 100 plans get 75 bps of the combined assets of all the assets
the cap is 50% of trailing 12
you can either get a early payment in sept or oct of 09 and sign a deal that ranges from 3yrs to 9yrs depending on how much money under 50k is only a 3 yr deal. or you can wait and get paid 3rd quater of 2010 and not be locked into any deal.
Not exactly buy low. If you do 101 plans you will get paid 75 bps of those assets with a ceiling of 50% of your trailing 12. Additionally, any household that is over $3mm is capped at $3mm. For example, my partnership has an account that is over $30mm but it is treat like it is $3mm. The stars have to be aligned just right for anyone to achieve the 50% trailing number. Additionally, payments are either 108 mos starting Sept. 2010 or a loan that is tied to some rate.