MWD layoff started
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For those of you at MSDW...do you feel that your colleagues that will feel the effects of this will be let go "nicely" and with some dignity, or are all of the FAs in the office going to go after their accounts aggressively right away?
Are there any chances they will be able to move any of their business to another firm?
Also, can anyone confirm that this is actually the formula that HR is using for the cuts:
Brokers with at least 8 yrs experience who produce under $225,000 in annual fees and commissions will be let go. Those with four to eight years of experience who produced under $150,000 in the past 12-months will be let go.
Those with two to four years' experience will be evaluated relative to their peers, and brokers over age 60 with at least eight years of experience will be dealt with on a case-by-case basis.
I couldn't agree more. I am with a Regional firm and I have never been happier. I was with Mother Merrill and MWD for 20 years and I thought that there was no life outside of the majors.
I got news for you all, there is life at the Regionals and at the Indy's. Take Jerry's advice and call him to explore your options.
"For those of you at MSDW...do you feel that your colleagues that will feel the effects of this will be let go "nicely" and with some dignity, or are all of the FAs in the office going to go after their accounts aggressively right away?"
Cmon now, thats a silly question. This business is cutthroat. Once those reps leave, before they even get to their car to open the trunk and throw their box in, their friends upstairs will be slamming the phones to those clients... I have seen it before... Once, a broker was leaving, walked by an office on his way to the door, and an FA was ALREADY calling the guys best client... It is what it is...
Any of you Morgan guys ever deal with Mike Turpin? He used to hi
five his little cronies when he fired people…apparently that is
what gets you promoted at MSDW…
Eventually, any Morgan reps under $500K will be shown the door. They
don’t call him Mack the Knife for nothing.
Morgan Scumley- I started right after 9/11. Came from a regional firm
in NY that clients thought was “conservative” but was really a “boiler
room”. I stayed with MS during the next four years until today.
Immediately after I started- they got bagged in Massachussets for the
"sales contest". Then it was one more crooked, embarassing deed after
another. Reaching a crescendo with the push to oust Phil. I defended
the hell out of the firm to my clients as each piece of news came out.
My clients stayed because of me! The relationship and their results
with me. I moved out of state nine months ago, and between getting my
house ready to sell, and moving and trying to re-establish new business
in my new locale, my trailing 12 suffered. So, after all of this
,Morgan put me on their list. Screw them- I had my letter of
resignation ready before I could get knifed (Mac). I’m starting at a
regional bank in a branch with 500 million on deposit. I should do well
there. People I speak to are shocked that a company of Morgan’s caliper
didn’t offer any severance… But Purcell and Crawford walked with 150
Million!!! To HELL with Morgan!! Good Riddance!!!
[quote=skeedaddy]Eventually, any Morgan reps under $500K will be shown the door. They
don't call him Mack the Knife for nothing.[/quote]
Given their average production that would mean 50% of the company is leaving.
at a certain tenure, the minimum should be 500k. they can start out easy with 10 LOS 500k is min.
I am new to the business, but with the payout % that I have seen, I wonder why anyone would still be in this business after 8 years and only 250k in production?
Because it's really all about expectations. Even at 30% $250,000 still gives you $75,000 which is allot more than the average worker in the US makes. There are LOTS of FA's that see that income level as perfectly good, especially in certain parts of the country. Here in LA you can't even find a decent condo let alone have a high standard of living on that amount of income.
Problem is that we are surrounded by high income earners via the top producers and we think ( at least I do ) that making anything less than $400,000 to $500,000 per year and amassing a $ 2 million 401K is unnacceptable.
There is a place for all income levels though.
This business is just too hard to settle for 75k per year, especially after 8 years experience. I don't blame MDW for the cuts. If I were Mac I would do the same thing. People who have 8 years experience an only 250k in production are certainly not working like they should be
Age Discrimination in Employment Act of 1967?
"Recently (4/2005), the Supreme Court ruled that older workers may sue their employers under the Age Discrimination in Employment Act for the employer's use of a practice or policy that, although non-discriminatory on its face, has a disproportionately negative impact on older employees as a group."
My office let go nine 40+. Last month they hired six in their 20's. Does something smell bad?
Maybe MWD is going to write another big check to settle this matter. MWD may think they were correct in the policy of using LOS, but the court still allows a case to be filed. I'm sure we'll be seeing some sort of action soon.
Does the supreme court tell a sales organization they can’t fire a guy who is over 40 but can’t sell? This is a sales job. If you can’t sell, you can’t stay.
The court stated that "workers may sue ".
Another case last year against MWD.
"On July 12 (2004), Morgan Stanley, a corporate finance leader, settled a sex discrimination lawsuit brought against them by Allison Schieffelin, a bond trader who had been fired by Morgan Stanley over four years ago. In the settlement, Schieffelin will receive $12 million, and another $40 million will be available to any of the 340 women who worked in Schieffelin’s department who can prove that they were also discriminated against. Another $2 million will go towards corporate education hoped to curb sex discrimination.
It is likely that Morgan Stanley agreed to the settlement because they wanted to avoid the embarrassment associated with having the activities of some of its employees aired in public. They also probably did not want to disclose many of their corporate salaries and incentive plans. As for the actual case, the odds of winning were in their favor."
Right or wrong...a court could have the final anwer. It seems that Wallstreet is finally having to deal with workers rights.
[quote=rickmwd]
Age Discrimination in Employment Act of 1967?
"Recently (4/2005), the Supreme Court ruled that older workers may sue their employers under the Age Discrimination in Employment Act for the employer's use of a practice or policy that, although non-discriminatory on its face, has a disproportionately negative impact on older employees as a group."
My office let go nine 40+. Last month they hired six in their 20's. Does something smell bad?
Maybe MWD is going to write another big check to settle this matter. MWD may think they were correct in the policy of using LOS, but the court still allows a case to be filed. I'm sure we'll be seeing some sort of action soon.
[/quote]
BFD, people were let go because of production, not age. I doubt MS is worried no matter how worked up the usual ambulance chasers get.
Allison was not is sales, she was on the bond desk. ANY sales organization can let anyone go who is not meeting their expectations. I would be scared to walk onto a car lot if sales organizations were not allowed to thin off their lower producers. I would be stampeded by 2000 chain smoking guys in short sleeves and ties.