ML “Transition†Packages are out
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And every investor survey run by an reputable organization. There are thousands of accounts at Merrill who think more of themselves because they have an account at Merrill Lynch. There is no more difficult firm to steal an account from than Merrill Lynch. Years ago I was part of a team testifying before The House regarding the Telephone Protection Act. Our leader was able to turn the table on Congressman Markey and asked him, "Mr. Markey, suppose you inherited a significant sum of money and wanted a financial advisor. Who would you call?" Mr. Markey, without missing a beat said, "I suppose I'd call my local Merrill Lynch office and ask to speak to the manager." At that point we won. Our leader responded, "So would most people Mr. Markey--which is why it is important that Congress allow all brokerage firms to use the phones to contact prospective investors." They--the House--had been considering a complete ban on any calling. There would be no need to keep a DNC list, every number in the country would be on it. Those same hearings yielded a very telling comment. The testimony was being stimulated by a member of the staff rather than a member of the House. At some point, in response to some comment, this staffer said, "Sir, the problem with your industry is it is too capitalistic." Several of us just looked at each other and remained silent--you can't talk sense to somebody who hates the entire system. Anyway, that sort of thing is what those stupid failures who sink to management end up doing.[quote=ezmoney] ML brokers are creme de la creme??? says who??[/quote]
ML brokers
Best part of the deal is the exlusive non-compete clause that if they sign they can’t take clients with even IF they pay back the 7 year forgivible loan.
If you liked ML before, you really better love it if you're signing your book away. I wonder if the 7 years applies to non compete too?are you kidding me? You are drinking too much kool aid. The bank of america way is you get along or you get gone. In any normal year, bank of america makes 5bb a quarter. Do you think they care about some guy doing 3 mm with a lousy margin? They make 250bp net profit on assets. You guys should get over yourselves. On a good day, you make about 40bp. Nothing more than a necessary evil. Get used to it. Just so you know… they will do it with that southern smile.
not sure what the defination means, but they do have the most million dollar producers if you keep score that way. I can say two things about this. I came from AGE, and there certainly is a different level of achievement mindset at ML then at AGE, and that can be a good or bad thing depending on where you are in your life. I view it as a good thing. I also view this retention package as good. Keep the top producers happy, this way ML continues to attract and hold onto the top tier of producers. By the way, since I just came over, I am not receiving anything, and certainly did not expect to.ML brokers are creme de la creme??? says who??
BAC has made two awful buys..CFC could have had been had for ZERO and even then sure if they waited a couple months they would not taken them even if they got 10BB to take over their crap..and ML I have heard from several sources if they had known now the current environment they would have never done it. Stock pushing new lows, w/o govt money this thing would be trading single digits and be on the hot seat for BK. Not out of the woods, can't think the company is too full of itself, they are in survival mode, nothing more.are you kidding me? You are drinking too much kool aid. The bank of america way is you get along or you get gone. In any normal year, bank of america makes 5bb a quarter. Do you think they care about some guy doing 3 mm with a lousy margin? They make 250bp net profit on assets. You guys should get over yourselves. On a good day, you make about 40bp. Nothing more than a necessary evil. Get used to it. Just so you know… they will do it with that southern smile.
You can tell by Lewis’ interview that he is sensitive to the fact that he overpaid for Merrill. The guy has a Napoleon complex and refuses to be told he is wrong. The package requires they get 25% growth to get the 25% stock piece (for those under 1.75MM). Lewis and his yes men think they should grow at 25% - the acceptable level when I was at BAI.
To you Merrill guys - When I was at BofA - they cut fee based by 15% because (in 1996) the “regulators made them” which is total BS. The bankers as someone has said before cannot get over the fact that the margins on wealth management assets are so low compared to the 300 Bps plus they get on deposits (net interest spread). And their problem is that they treat an investment account, in their minds, like a “bank” asset.
[quote=bancofamigo]You can tell by Lewis’ interview that he is sensitive to the fact that he overpaid for Merrill. The guy has a Napoleon complex and refuses to be told he is wrong. The package requires they get 25% growth to get the 25% stock piece (for those under 1.75MM). Lewis and his yes men think they should grow at 25% - the acceptable level when I was at BAI.
To you Merrill guys - When I was at BofA - they cut fee based by 15% because (in 1996) the “regulators made them” which is total BS. The bankers as someone has said before cannot get over the fact that the margins on wealth management assets are so low compared to the 300 Bps plus they get on deposits (net interest spread). And their problem is that they treat an investment account, in their minds, like a “bank” asset.[/quote]
I’ve been in the business for just five years but I can tell you that it is INCREDIBLY EASY to lift account from Merrill Lynch. I would have to say that 80 - 90% of the accounts I have transferred in the past five years have been from ML.
Merrill brokers think more of themselves than their clients do.I’m an LOS 5 producer at ML and am 1st or 2nd quintile in all areas. This retention package completely ignores the rising stars at ML and has me scratching my head. Why wouldn’t they want to make up and comers happy. I’m 90% out the door now and I wanted to stay. BTW, the deals remain as rich as ever for an FA with my metrics.
My office was pretty quiet today and I heard the same about the others in our complex. I cannot imagine what it will be like when the new compensation plan comes out.
Fritz, I am on for McCain plus 5 by the way.
As far as moving accounts from one to another - your book is as good as you are. If you sell your firm you have made a horrible mistake. If you have educated yourself (like CFP) and maintain contact with more than the “hang in there” then your clients will see more than the firm. I have moved accounts from Indies, firms etc. I got the accounts because the reps were either not taking care of the clients or failed to implement a needs based approach (and therefore sold them the American Funds du jour).
Back to point - ML reps are getting the shaft from a firm that has absolutely thrown them under the bus. Granted, it wasn’t Thain’s fault - his patient had a sucking chest wound after ESON leverage the balance sheet up by 30 times. Thain is a hero for getting .8595 shares of BofA and Lewis is the dim bulb he always will be. But the Private Client side is not to blame here and they are getting the rusty.
Any of you that are 1-2 quintile that are under the line due to time in the saddle ought to look around. The future will not be brighter with the team you are about to sign on with.
just so you know, been involved with 4 BAC mergers. None of the guys you see here signing up today will still be here a year from now. Thats from the horses mouth. Its a fact. they smile, and then you see all of these charlotte people talking too loud, smiling too much, laughing too often, and you’ll say these people are stupid, and way too happy. They are happy because they know they have jobs and you don’t! Beware non-producers, because payback for the crap that you people wrought on merrill et al… is soon to be vistited upon you. Bac for 10+. Mark my words.
Can somebody help me out? I’ve been reading over the legal documents they gave us today (I’m getting a low six figure up-front payout, not bad for staying put and doing the same thing I was going to do anyway). One thing I can’t find anywhere: do we get taxed up-front on this or just over time as they pay back the loan? Obviously Uncle Sam’s 36% makes a big difference between “great” and “good”. Any help would be appreciated.
Most likely over time. In the past, you would write a check to BAC every year for the prorated portion and they would write a check back to you, less the taxes.
Ok, that make sense. That’s what the documentation states…they’re giving us a monthly service bonus every month we stay around, which equals the pro-rated monthly amount of the loan, and the taxes are taken out of that. So I get all the $$ up front but I should escrow for taxes until my net production gets high enough to cover the extra taxes every month. Thanks for the clarification.
You have to pay the taxes over the term of the note (7 years) It’s a draw that comes out of your check monthly.
Wait though. BofA also charges 5% imputed interest and it hits payroll as income not as a bonus. That means it also gets the 7.65% for SS and Medicare. UBS counts the 100% plus as bonus (no FICA) and it posts on the monthly comp as gross earnings but hits only against the FIT and State lines. When I was at Banc of Amigo I had to write a check each year for (in this case) 1/7th of the amount gross, then I’d get 45% back net. Welcome to Amerika! My advice is to keep one year liquid (or semi) now, then save each month to accumulate the next year etc.