500 or bust?
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I dint here that? Where did you read that Obama wants to look into retention packages?
Here's some interesting news:
NEW YORK -(Dow Jones)- Wachovia's research department suspended coverage of a large swath of consumer-oriented and financial stocks Tuesday and said six of its lead analysts had left the firm.Wachovia suspended coverage of 90 stocks in total, including those of apparel retailers, broadline retailers such as Wal-Mart Stores Inc. (WMT) and Home Depot Inc. (HD), and retailers that sell so-called hardline goods like home furnishings and auto parts. Coverage of household and personal-care product makers, as well as box and packaging makers, was also suspended.
The firm, acquired by Wells Fargo & Co. (WFC) in January, also suspended coverage of insurance-company stocks and asset-manager and brokerage stocks, including Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS).....
A person familiar with the matter said the analysts resigned because the 2008 bonuses that Wachovia awarded all its analysts last Friday were more than 90% lower than what they had received for 2007. On Wall Street, a lead analyst's bonus is usually several times his or her base salary.
"The real reason these people left was because they weren't getting paid," the person familiar with the matter said.
And.. UBS is acquiring us according to this story... Here's the end of it: Earlier Tuesday, the New York Post reported that Swiss banking giant UBS AG ( UBS) was in preliminary talks to acquire Wachovia's wealth-management unit, which includes its retail brokerage and financial-advisory service. The wealth- management unit doesn't include Wachovia Capital Markets LLC, which houses the research department, Wilkinson said.More “sources”, more “I heard”, it cracks me up. I do not think Hays will talk retention tommorow, I believe Ludeman will announce amount of retention by Friday Feb 13th. Hays just said “You will be pleased with retention” 10 days ago. What has happened since then - nothing.
So if you have 12 nights booked starting Friday and you cancel - do you suppose WFC had cancellation insurance?
I would assume that they have already paid or will still have to pay for the rooms, entertainment reservations, catering, etc...so, nothing saved - just nobody going.Damn I miss John. And knowing the guy he is he wouldnt be laughing he would be disapointed that he wasnt able to take more guys with him when he left. I am taking my March 16 bonus, taking my retention, and in 5 years I will be a Stifel employee
Be Patient What has changed since the last 4 times they promised an announcement about retention- nothingMore “sources”, more “I heard”, it cracks me up. I do not think Hays will talk retention tommorow, I believe Ludeman will announce amount of retention by Friday Feb 13th. Hays just said “You will be pleased with retention” 10 days ago. What has happened since then - nothing.
BP, The questions today is, "who will you be working for until you go to Stifel?"Damn I miss John. And knowing the guy he is he wouldnt be laughing he would be disapointed that he wasnt able to take more guys with him when he left. I am taking my March 16 bonus, taking my retention, and in 5 years I will be a Stifel employee
I come back to this forum from time to time, and always leave feeling a bit dumber, and even more confused at what the hell is going on.
Compensation? Retention? Spin and the death of entrepreneurship at the wires. Thank you senior management and socialist politicians.
I have been reading this post for weeks and hearing all of the bewilderment of where their retention is… is it coming yet?
Let’s discuss who holds the cards in this mess.
The compensation issue begins at the top and that should be the focus here and not the advisor comp. How about the wall street bonuses of Senior management?
They will devise arguments to avoid your retention. These firms will hide behind the TARP excuse or ethical BS to try to revise advsior compensation. They’ll balk about retention and stall to break the morale while they slice and dice. Meanwhile, after imploding their equity values, the greed at the top majorly contributed to the mess retail advisors are stuck explaining to clients - handholding for the non sense above. And yes, that’s an advisors job - but it’s remarkable how the firms have figured out how to collectively squash the front line. Where is the leadership at the top of Wall Street or any sense of respect for advisors? Well, who needs to respect the new era advisor if there are only 3 major firms left for clients to go to? The need for advsiors is being reduced by a banking “scaleable” model. Maybe you’ll be salaried now and even have walk-in business as clients have fewer choices. Thus the salary compensation model. Of course hours will become bankers hours and you’ll handle much more assets. After all, “this is best for the firm’s clients and for you the advisor.”
And these ethical bankers will continue to devise ways to fee clients further and get creative with non-compensable revenue - haircutting products and “maintaining great payouts”. i.e. the tiered money sweep accounts, lending spreads, account fees.
So be careful what you wish for. With retention comes the handcuffs and submission. Get ready for mediocre firms and locked up advisors. Now let the cost cutting and reduced support to care for clients begin!
Any firm leadership who says advisors make to much sadly believes that it’s okay to avoid transparency and sadly forget who fights in the trenches. And politicians should be grateful advisors help maintain some sense of order and sanity in this crisis. It’s sickening to see the bonuses and parachutes of senior management. Come down from the towers and know what your reps are dealing with…
As far as the swiss thinking advisors make too much in the U.S.A. - advisors do because of fierce competition and a culture of pioneer entrepreneurs unlike swiss bankers who enjoy less competition and a completely different type of clientele. Go home if you don’t like it here. Cheers to the American broker.
MMMM? Consolidation, Less firms… demise of capitalism? Power shift to management who will enjoy total control of your former business. A Banking takeover of the wirehouse brokerage industry. Lock 'em boys with retention…How wonderful!
Viva le Revolution. While the power has shifted for the time being, someday soon it will cycle back to trusted advisors who overshadow the broken firm models. The first major firm who realizes and values this will be the next leader and place that will attract the advisor talent. They won’t have a need for “retention” or to pay and lock people at their firm because advisors will want to be there. And there aint a firm today worthy of this notion.
[quote=LogansRun]
Viva le Revolution. While the power has shifted for the time being, someday soon it will cycle back to trusted advisors who overshadow the broken firm models. The first major firm who realizes and values this will be the next leader and place that will attract the advisor talent. They won’t have a need for “retention” or to pay and lock people at their firm because advisors will want to be there. And there aint a firm today worthy of this notion.
[/quote]
I beg to differ. Of course, you’ll miss them if you define “major firm” as one of the ailing/failing wirehouse firms, and only determine “major” by number of advisors instead of by growth or profitability.
Two that come to mind as fitting your description would be Stifel and LPL. Maybe RayJay as well.
[quote=BE PATIENT]I am taking my March 16 bonus, taking my retention, and in 5 years I will be a Stifel employee[/quote]
Ooohh! Wait 5 years! That’ll show them they can’t jack you around!!
The more I see the landscape changing the more I am convinced that going independent is the end game for advisors who want to run the business like it was a year and a half ago. These big firms are going to squeeze and squeeze until they force people into a salary/comp model that equates to you getting paid a LOT less and they having complete control of the client relationship.
I can see it now, they will advertise that "our advisors are salaried employees of the bank so you can know with complete confidence that the advice you get is completely unbiased, unlike your current advisor..." The volicity of change in our business right now is greater than at any other time any of us have been in the business. Headline article states that the MGT broker trip to Vegas was cancled. I am really starting to think that there is no retention because of the heat Banks are taking with how money is spent. In the article I read the journalist was truthful enough to specifically point out that NO Tarp money was going to be used for the Vegas trip but that didnt stop Politicians from spining it to look as though Wells was using TARP money. Guys and Gals I think, we are screwed on retention.The only issue with the future of Indy, thanks to the FPA (I am a CFP), is that there is bound to be additional regs on the indy channel. FPA has argued they have the superior type of regs using disclosures and .brochures and ADV’s. Madoff et. al has shown that doesn’t protect anyone. The B/D rules are disclosures and oversight. If I were in charge of simplifying the regs to benefit the clien, I would unify the rules with disclosure that is limited and clear and have oversight.
What exactly is the reason to BE PATIENT. How much has changed in the LAST 5 years? If you had tried to paint the picture of what is actually happening now, they would have taken you away to the padded room.[quote=BE PATIENT]I am taking my March 16 bonus, taking my retention, and in 5 years I will be a Stifel employee[/quote]
Ooohh! Wait 5 years! That’ll show them they can’t jack you around!!
In the end, more Indy’s, and yes, more Reg’s on Indy’s. That’s ok. It’s no use being mad at the big wirehouses. Their model needs and requires brokers/teams with higher production. Wirehouse/Indy—neither is good nor bad in and of itself. Just different.
Why would you wait 5 years? 5 more years of BS?Damn I miss John. And knowing the guy he is he wouldnt be laughing he would be disapointed that he wasnt able to take more guys with him when he left. I am taking my March 16 bonus, taking my retention, and in 5 years I will be a Stifel employee