500 or bust?
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[quote=FawnLiebowitz]Did anyone see this today?
Morgan/Smith Barney To Pay Retention To 75% Of Combined Force [/quote] Think 500K is right..UNDER = NO Retention. But what is wrong is I know a guy at 370K who is 3400 out of 8100. By my math 75% of the people will get NOTHING at MS, dont know about SB production.FYI…spoke to someone who was AT this meeting and no 500k threshold was established. They only spoke of “MASSIVE” packages to be announced within 2 weeks. As a former Morgan broker, only one guy in our office was north of 500k out of 15 brokers, so the 75% is no where near correct.
I did just shy of 400 in 2008 a WS… as bad as that may sound, I was squarely in the second quitile at the firm… Guys doing 350-500 are the back bone of this business. If you took a snap shot of the MEDIAN broker, that is what he looks like
think the median was right at 300K in 2008. Think 200-225 will be the 1/2 way mark for 09 at MS. Unless they cut the bottom 1/3 or whatever level.I did just shy of 400 in 2008 a WS… as bad as that may sound, I was squarely in the second quitile at the firm… Guys doing 350-500 are the back bone of this business. If you took a snap shot of the MEDIAN broker, that is what he looks like
Beeen in the industry 25 years - top producing FA and MAnager as well as RP… This idea of " retention" is a joke - and your using BAC to justify the statement ? 100 billion in taxpayer money with a 25 billion market cap ? yeah , that retention really made sense… Why shouldnt commercial bankers that bring in millions each in revenue get retention, and why shouldn’t RM’s that manage millions get retention… If I were John Stumpf I would say that the retention is the deferred comp that didnt become worthless since WFC bought the piece of crap WB, and the capital to continue to invest in tech, a competitive comp plan, and no SIPV coming in to send out certs becasue your firm went under… Its a joke… former Pru guys are on their 3rd retention in 6 years , and possible 4th if they moved near the end… The company never made a profit - boy, thats a great business model… keep paying those brokers retention ! Thats why the brokerage business will now become under the watchful eye of Washington and congress - and we’ll all be forced to work for salaries and bonuses…
Dont get me wrong , I want cash as much as the next guy , and I cant stand WB, but look at this rom a business perspective or a shareholder - PR perspective and there is only one decision to make -
Wow, with comments like that, I am definately not going to vote for MRADD to take DL’s spot when he gets canned.
Was thinking today how many car loans WFC would have to make to pay the retention for one 750K broker? Lets assume 75%...so around 500K "Retention." 2008 BMW 5 Series 55K with 20% down, so about a 36 month 45K loan at 6% interest. that would be about 5K of interest for WFC...So they would have to finance about 100 nice car auto loans to pay the retention for the broker. I guess some cars would be VW Jettas though so maybe 200 cars. I hope they dont have to repo any of them of else all the math falls apartBeeen in the industry 25 years - top producing FA and MAnager as well as RP… This idea of " retention" is a joke - and your using BAC to justify the statement ? 100 billion in taxpayer money with a 25 billion market cap ? yeah , that retention really made sense… Why shouldnt commercial bankers that bring in millions each in revenue get retention, and why shouldn’t RM’s that manage millions get retention… If I were John Stumpf I would say that the retention is the deferred comp that didnt become worthless since WFC bought the piece of crap WB, and the capital to continue to invest in tech, a competitive comp plan, and no SIPV coming in to send out certs becasue your firm went under… Its a joke… former Pru guys are on their 3rd retention in 6 years , and possible 4th if they moved near the end… The company never made a profit - boy, thats a great business model… keep paying those brokers retention ! Thats why the brokerage business will now become under the watchful eye of Washington and congress - and we’ll all be forced to work for salaries and bonuses…
Dont get me wrong , I want cash as much as the next guy , and I cant stand WB, but look at this rom a business perspective or a shareholder - PR perspective and there is only one decision to make -
The bonus is misleading since it is earned over such a long period of time. Over 10 yrs, what % of revenue generated by the broker does the retention bonus actually account for? If you get a total of 100% up front, that is only 10% a year, less if your production grows, which for most it will. You noticed I used the term revenue instead of gross commisions. If you add up all the fees the broker gets zero credit for, the spread on the money funds, the haircuts on bonds/mutual funds/syndicate products (how much does WB have baked into those cd's and structured products?), paying retention makes sense to keep your producers. The bonus AGE brokers got doesn't even make up for the loss of 401k/deferred comp/restricted stocks they will see over the term of the bonus.Beeen in the industry 25 years - top producing FA and MAnager as well as RP… This idea of " retention" is a joke - and your using BAC to justify the statement ? 100 billion in taxpayer money with a 25 billion market cap ? yeah , that retention really made sense… Why shouldnt commercial bankers that bring in millions each in revenue get retention, and why shouldn’t RM’s that manage millions get retention… If I were John Stumpf I would say that the retention is the deferred comp that didnt become worthless since WFC bought the piece of crap WB, and the capital to continue to invest in tech, a competitive comp plan, and no SIPV coming in to send out certs becasue your firm went under… Its a joke… former Pru guys are on their 3rd retention in 6 years , and possible 4th if they moved near the end… The company never made a profit - boy, thats a great business model… keep paying those brokers retention ! Thats why the brokerage business will now become under the watchful eye of Washington and congress - and we’ll all be forced to work for salaries and bonuses…
Dont get me wrong , I want cash as much as the next guy , and I cant stand WB, but look at this rom a business perspective or a shareholder - PR perspective and there is only one decision to make -
Want to hear more about Wednesday vote in favor of retention. I also heard same thing before reading post. Heard 2.5 bill set aside for retention and 400k and less will not be receiving. 1 mill+ is 50% upfront.
What FA’s do is really really really really really hard
Think about ur training class.
I bet maybe 2-3 out of 10 make it long term
Alright, heard this rumor from a close broker friend, who got this from a recruiter… So, his info is 3rd hand, at best. Heard it again from another friend in a different office, he got it from a different source, don’t know legitimacy.
But, from what I understand is that on Friday of this week, PCG will be spun off. Wells just wants the bank and the ISG guys. ISG guys will get retention. PCG gets retention from the new firm, which is being rumored to be UBS.
This came from someone who actually saw the retention document, though not sure I believe that part.
Take it for what it is, internet rumor but, it makes sense to me…
UBS sure has been super aggressive getting guys recently. how many FA’s would they have with WS?
But, from what I understand is that on Friday of this week, PCG will be
spun off. Wells just wants the bank and the ISG guys. ISG guys will get
retention. PCG gets retention from the new firm, which is being rumored
to be UBS.
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If true:
So what the heck would ISG be using for a platform? I cant imagine Wells has anything decent. That would be one cluster F.
As internet rumors have been flying rampant on this thread ... this one seems as believable as any. As it has been pointed out now there is SB & MS / BAC & ML unless UBS finds a dance partner they will be left in the dust. One has to believe that after 4 months into a takeover (wfc &wb) & the parent hasn't officially announced a damn "name" of the new company something is stirring behind the scenes. Time will tell.Alright, heard this rumor from a close broker friend, who got this from a recruiter… So, his info is 3rd hand, at best. Heard it again from another friend in a different office, he got it from a different source, don’t know legitimacy.
But, from what I understand is that on Friday of this week, PCG will be spun off. Wells just wants the bank and the ISG guys. ISG guys will get retention. PCG gets retention from the new firm, which is being rumored to be UBS.
This came from someone who actually saw the retention document, though not sure I believe that part.
Take it for what it is, internet rumor but, it makes sense to me…
wells’ bank ops are very similar to isg. similar mgd money platform and packaged products, but no l share annuities. huge focus on life insurance. wells is #5 nationally in life production, but they only have 1200 brokers.
i'd expect wells secures access to certain resources. kind of like ws access to credit suise research. this rumor really makes sense...All bullshit. UBS wont happen. They have the money to recruit but no way to buy WS. Retention will happen by Friday Feb 13th
51% on smith barney sold for $2.5b. a similar % of ws shouldn't be much higher. not exactly out of ubs' reach...
wells keeps enough to maintain access to the platform.