How did the retention bonus for AGE/WS?
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Everything I’m hearing from folks I know at Wells in SF is that Wachovia folks need to be ‘prepared’ to be disappointed with the retention package. One of my best friends wife is pretty far up the Wells Fargo ladder at HQ in their HR group. I’m told the culture at Wells and the view of Wachovia is that there is a ton of cost cutting to come to the Wachovia world. I’d guess Profit Formula will probably be first to go or get a major re-design due to razor thin impact if not losses on too many branch P&Ls as well. I’ve heard nothing yet that makes me think the masses at Wachovia are going to be so happy about things down the road. I wish it were otherwise.
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HR? HR doesn’t know how to run a business. Sure there is always plenty of fluff in management but to think that HR has any input into a retention pkg is laughable.
I could not agree more. HR could not run a popsicle stand imho. That’s why I hope it’s hearsay, not factual. We shall see.
Just talked to a buddy of mine from College who is doing big numbers at WFC as a branch broker, he has been on the miserable side there for awhile but hard for him to walk from the 50K month trailers..he said payout cuts coming to all WFC brokers and WB guys would get 1 year grandfather to old WB grid, then transition to WFC grid, which he says he was too embarrassed to tell me. Also thinks retention package will be low to non existant for most...Not in the culture there to give $$$, and their main focus on the merger was to get east coast branches, not more brokers. They are already encouraging all tellers to get 7's and that has hurt his gross already pretty good this past year. He says even with him doing 7 figures there they do not care of he leaves, in their eyes on of his 3 assistants will just step right in and service the book. Anyone thinks that this is going to be a great scenario for WB brokers is probably going to surprised.Everything I’m hearing from folks I know at Wells in SF is that Wachovia folks need to be ‘prepared’ to be disappointed with the retention package. One of my best friends wife is pretty far up the Wells Fargo ladder at HQ in their HR group. I’m told the culture at Wells and the view of Wachovia is that there is a ton of cost cutting to come to the Wachovia world. I’d guess Profit Formula will probably be first to go or get a major re-design due to razor thin impact if not losses on too many branch P&Ls as well. I’ve heard nothing yet that makes me think the masses at Wachovia are going to be so happy about things down the road. I wish it were otherwise.
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This is all very simple. If Wells Fargo wants to retain some of the best Financial Advisers in the business, we will see a retention package similar to what the WB/AGE deal was.
If they are not interested in the billion dollars that we produce each year, then they will offer us a crappy retention bonus and they will see a MASS exodus. So far I respect WFC and I hope they respect us.
Is that Billin dollars t-12 or going forward..Can tell you my buddie did not want to go motivational speaker pep talk last week, and they pretty told him he is "replaceable". He does well over 1 Mill and they do not care about him, so what does that say..he has been there 15 years.This is all very simple. If Wells Fargo wants to retain some of the best Financial Advisers in the business, we will see a retention package similar to what the WB/AGE deal was.
If they are not interested in the billion dollars that we produce each year, then they will offer us a crappy retention bonus and they will see a MASS exodus. So far I respect WFC and I hope they respect us.
Just talked to a buddy of mine from College who is doing big numbers at WFC as a branch broker, he has been on the miserable side there for awhile but hard for him to walk from the 50K month trailers..he said payout cuts coming to all WFC brokers and WB guys would get 1 year grandfather to old WB grid, then transition to WFC grid, which he says he was too embarrassed to tell me. Also thinks retention package will be low to non existant for most...Not in the culture there to give $$$, and their main focus on the merger was to get east coast branches, not more brokers. They are already encouraging all tellers to get 7's and that has hurt his gross already pretty good this past year. He says even with him doing 7 figures there they do not care of he leaves, in their eyes on of his 3 assistants will just step right in and service the book. Anyone thinks that this is going to be a great scenario for WB brokers is probably going to surprised.[/quote][quote=burtonfinancial1]Everything I’m hearing from folks I know at Wells in SF is that Wachovia folks need to be ‘prepared’ to be disappointed with the retention package. One of my best friends wife is pretty far up the Wells Fargo ladder at HQ in their HR group. I’m told the culture at Wells and the view of Wachovia is that there is a ton of cost cutting to come to the Wachovia world. I’d guess Profit Formula will probably be first to go or get a major re-design due to razor thin impact if not losses on too many branch P&Ls as well. I’ve heard nothing yet that makes me think the masses at Wachovia are going to be so happy about things down the road. I wish it were otherwise.
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I would not pay much attention to what HR or a WFC bank broker says. I would look to what BAC pays MER as a starting point. Listen its been hard on both WS and AGE brokers over the past year. WB screwed the pooch and it employees have paid for it. Now that there is some stability you need to get on the phone and touch your book. If you don't someone else will.
It’s not apples to apples to compare the branch brokers to whatever it is they call us Legacy AGE guys. That being said, I would not be shocked if they offer a small amount given the condtions.
I don't even know what I'd compare a million dollar branch broker to at a wirehouse. The TT is impressive but I think they are expected to double the average production given the handouts they get. Those clients are stickier to the bank versus wirehouse clients I would think. These days, I don't profess to know a whole lot...Wells Fargo does not have a track record of running a large scale brokerage firm like WS. What makes anyone think that they will get this integration right? They are first and foremost bankers and I wouldn’t expect them to change their 100+ year old banking culture because they just picked up 14,000 disappointed brokers.
And there is always the possibility they (WFC) sells off WS to the highest bidder. Hence, I and a lot of fcs are doing our homework elsewhere. I've found with all the crud going on these days, the competition is too busy dealing with their own crud to worry about recruiting.
[quote=Gordon Gekko]It’s not apples to apples to compare the branch brokers to whatever it is they call us Legacy AGE guys. That being said, I would not be shocked if they offer a small amount given the condtions.
I don't even know what I'd compare a million dollar branch broker to at a wirehouse. The TT is impressive but I think they are expected to double the average production given the handouts they get. Those clients are stickier to the bank versus wirehouse clients I would think. These days, I don't profess to know a whole lot... [/quote] Dont think in their eyes it matters, but interesting note from you..I have seen about a dozen rookies who did not or could make it at wirehouses Ive been at and couple other producers go to bank..and what ive seen is someone who could not do 50K in production will do 300K at the bank and guys doing 200K at wirehouse can do about as much as they want at the bank, their own ethics are the only thing controlling of they do 500K or 1 Million, the non stop stream of suckers walking though you door lets you decide what product is right, CD paying 4% or a fixed annuity and then flip them into another one as fast as you can.You don’t seem to control your own destiny as much at the branch versus wirehouse in my opinion. A premium is paid for individuals who can grow a business on their own versus having it semi-handed to them.
Anyone who gets it would agree with you... But who knows how smart people are. My shop paid 200% for a 2 million T-12 team of 3 from Wamu..after 6 months they are at around 225K..My common sense would be not to pay bank brokers any up front money, all back end based on whether they can do it with bank customers.You don’t seem to control your own destiny as much at the branch versus wirehouse in my opinion. A premium is paid for individuals who can grow a business on their own versus having it semi-handed to them.
Is that Billin dollars t-12 or going forward..Can tell you my buddie did not want to go motivational speaker pep talk last week, and they pretty told him he is "replaceable". He does well over 1 Mill and they do not care about him, so what does that say..he has been there 15 years.[/quote][quote=Jeroxide]This is all very simple. If Wells Fargo wants to retain some of the best Financial Advisers in the business, we will see a retention package similar to what the WB/AGE deal was.
If they are not interested in the billion dollars that we produce each year, then they will offer us a crappy retention bonus and they will see a MASS exodus. So far I respect WFC and I hope they respect us.
If he works in a bank branch than he is very replacable, the assets came to him becasue of WFC and will stay becasue of WFC....the legacy AGE, and non bank WS reps did not get any business that way...so if WFC doesnt understand that then the brokers and assets will walk away...that may work for a crappy broker that sits in a bank branch waiting for referrals...but not for a broker in a branch office.
The hate for the bank broker is unbelievable. If SOME of you guys are so angry that we (yes, I work for ISG) get these “lay-ups” why would you not do the same thing. I guess nobody wants an endless referral source, huh?? For what it is worth, I do not work in a branch anymore, 50% of my business is managed money (or at least it USED to be 50%). For a lot of guys, working in the branch still makes sense, but once you have been in the same place for more than 5 years, it becomes more of a nusance than anything else. My referral come from my top clients, and I would assume that is true for most people in my position. I also believe that my clients are loyal to me, not the bank. If I move, we will soon find out for sure, but to assume that WS Bank Brokers are doing mostly fixed annuity business is simply not true. We as a collective do more Managed Money every month than anything else.
You're right duster but I don't believe it's hate for the bank broker I believe it's either envy or ignorance that is prevelent on this board. There seems to be this prevailing attitude here on the RR forums that working in a bank & being handed an endless referral source (at LEAST a dozen a week in my case) is some how dishonorable. Last time I checked there was no dishonor is working smart & being successful.
Many on here are of the belief that the bank brokers only product/tool is the fixed annuity and all of his clients automatically get slammed into a fixed or equity index annuity...they don't understand that my broker/dealers plateform is unresticted & wide open & many of us can sell whatever is most appropriate for the client just as any independent rep would do. True there are wide variations and many bank brokers do have limited access to products & services but some of us are as flexible as any independent with respect to our product offerings. Like anything else there are positives/negatives to woking in the bank channel...I simply believe that the business is big and diverse enough to accomodate a number of different channels & no one has a lock on "mine is best". Fortunately we are all free to select what is best for our clients and ourselves and run with it. That's the beauty of the business - there's more than one way to skin a cat.I agree with you in concept, that they need to come up with a good retention package to compensate us for the pain of the last few months, but then I wake up. Here’s the reality: times are crazy! Look at the public outcry over the AIG $400K executive trip. I can just see the headlines now “Taxpayer Money From Bailout Goes Directly To Give Millions To The FA’s Who Just Lost You 40%”. Now matter what the money is really for, the public will not like it. Nor will Congress. If you think that they have limited executive pay and won’t limit our packages, wake up.
Not trying to be a pessimist, but I just don’t see much coming. I think that is why BAC/MER has been delayed so much. They are trying to guage public opinion.
However, I really hope that I am wrong.
I dont work for either ML or BAC…but the only logical reason for waiting this long is they want as many ML brokers to leave as possible so they dont have to give $$$ out. From what I have heard is there is some serious regret about their purchase of ML.