What will a WFC/WB retention package look like?
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[quote=Gordon Gekko]Well, ignorance is bliss!
I ran that report today, only to find out I am already getting jipped on small trades. So, I can look at it one of two ways. I can keep getting jipped under the new plan in March and I won't notice much of a difference OR I can be proactive and move. I am burned out listening to various firms and I am sitting tight for the time being. How's that for avoidance behavior?[/quote]There is a big difference betwen 28-40% and 0% though!
http://www.charlotteobserver.com/597/story/302174.html
Cutting high paying IB jobs and still PCG planning on getting a big retention package? Once again, not so fast my friend![quote=Gordon Gekko]http://www.charlotteobserver.com/597/story/302174.html
Cutting high paying IB jobs and still PCG planning on getting a big retention package? Once again, not so fast my friend![/quote] No tickey no laundry!.....I'm outta here.[quote=Gordon Gekko]Morphius, I am like the dude from “The Matrix” who sees how the world really is but decides he wants to go back to fantasyland. [/quote]
"This is your last chance. After this, there is no turning back. You take the
blue pill - the story ends, you wake up in your bed and believe whatever you
want to believe. You take the red pill - you stay in Wonderland and I show you
how deep the rabbit-hole goes."
What will it be Gordo?
Life is short. Some opportunities don’t knock twice, much less three times.
Ribbet, ribbet.
[quote=Gordon Gekko]VA’s, trails on fund, new fund purchases, managed futures trails -currently 40% or higher
All those 100 shares of GE, 20k of a CD, little nickle and dime stuff that I thought counted - not so fast my friend![/quote]Any Equity trade over 55 we currently get paid on...moin of 28% and up from there depending on discounting etc. So unless you are doing trades under that amount you are getting paid...that minumum will now double.
That was the line I was thinking of, Morphius!
Mmmmm, blue pill! Ironically, Wachovia's colors are blue and green. Trippy!First yr they ding you on payout in FiNet but that’s minor.
Shredder, What are the specifics of the ding? Also, I heard u give up the back end of the retention going to Finet.Go_Long, I agree on most counts, I am growing assets, prod and fees every year, so that is great…I just like gettign paid now not later, and prefer not to nickel and dime my clients, and I expect my firm to not do that to me either.
[quote=dizzy]First yr they ding you on payout in FiNet but that’s minor.
Shredder, What are the specifics of the ding? Also, I heard u give up the back end of the retention going to Finet.[/quote] You get 75% instead of the 90% to offset the "loss to the branch" in the first year and, yes, you "lose" the back end of the retention....that would be the fairytale portion of the retention that I have only seen listed 1 time when they announced the deal and vests in year 10 (thanks Danny and Bob B.). You will also have the retention bonus spread out over an additional 8 years vs. the 5 yrs remaining. Part of the scuttle butt I have heard recently is that they will make the "back end" part of orig. AGE deal vest with the WFC retention (if there really is one) I'd like to see how they spin that one.....hey maybe that's what the $10BB offering is about....yeah, that's the ticket. I can all ready hear it now: "....ummm umm ummm we are going to advance the umm umm defered portion of the uummm umm original AGE deal as part of the ummm uuummm WFC pkg of 10% uuumm umm which will make it the uuum oops highest payout EVER given to FA's in the uuumm ummmmmm entire galaxy....Gosh we are good!"I’m hearing we should expect an accelerated payout plan, a higher payout for 2 yrs for ex.
Cash outlay to execs may not go over well if we're part of the TARP I thinking. Henry Waxman is all up in it.[quote=dizzy]I’m hearing we should expect an accelerated payout plan, a higher payout for 2 yrs for ex.
Cash outlay to execs may not go over well if we're part of the TARP I thinking. Henry Waxman is all up in it.[/quote] We ARE NOT EXECS!!!I hear you. The negatives are... well negative. Legacy AGE advisors product mix isnt as high (on average) with the fee based biz as the WS advisors -- so the idea of not getting paid on some stock trades and the $10 ticket charges are a negative and do seem like a nickle and diming of the advisor and client. It is possible that what the new firm is saying is that we don't want small tickets and/or the smaller clients. One other positive. Expense accounts once you reach a certain level of production.Go_Long, I agree on most counts, I am growing assets, prod and fees every year, so that is great…I just like gettign paid now not later, and prefer not to nickel and dime my clients, and I expect my firm to not do that to me either.
I hear you. The negatives are... well negative. Legacy AGE advisors product mix isnt as high (on average) with the fee based biz as the WS advisors -- so the idea of not getting paid on some stock trades and the $10 ticket charges are a negative and do seem like a nickle and diming of the advisor and client. It is possible that what the new firm is saying is that we don't want small tickets and/or the smaller clients. One other positive. Expense accounts once you reach a certain level of production. [/quote][quote=nestegg]Go_Long, I agree on most counts, I am growing assets, prod and fees every year, so that is great…I just like gettign paid now not later, and prefer not to nickel and dime my clients, and I expect my firm to not do that to me either.
That is exactly what they are saying...unfortunately that is the polar opposite of what most of us built our biz on since the AGE focus was vastly different.
Am I the only FA here who has this opinion?
1) PF will be one of the first casualties of the WF/WS deal- my opinion!
2) PF is not profitable…it’s killing small branch P&Ls where it’s in place and most small market managers don’t want anyone on it. They regularly turn opportunities to bring PF teams aboard!
3) Big branch managers who have teams in PF want them gone because they are neutral at best on the branch P&L and only a few in the system are worth having from a BM comp standpoint.
4) Wells Fargo is KNOWN for it’s very cautious and careful view of every facet of a business it operates. How in the world will the super low margin and unprofitable PF get past their microscope? They are going to slash and burn. PF is an easy target and not the first or last.
I love Profit Formula and I think it’s a great platform for a larger producer or team. The model is solid for the advisors. Will is be part of a Wells Fargo future? I think not a chance.
[quote=iceco1d]
Too bad firms have to play games like this. Why not just a simple - 30% here’s your payout. No admin fees. No tickets. No minimum to get paid out. So stupid.
[/quote]When I was living in the wire world I came to develop the theory that the reason the payout structures were so complicated was in no small part to keep FA’s from thoroughly understand how they were being compensated.
[quote=Gordon Gekko]http://www.charlotteobserver.com/597/story/302174.html
Cutting high paying IB jobs and still PCG planning on getting a big retention package? Once again, not so fast my friend![/quote] *sigh* WS is PRIMARLY a brokerage production firm. IB is so minute at WS that it basically was non existent. Makes perfect sense to do this. When you offer crappy or non existent retention to production, production leaves in droves. I went through the PSI WB meger and I will not go through another merger without gettting paid. It is a MONSTEROUS pain in the arse. The issue isnt stay because there will be no change. Change IS coming.... the only thing WS brokers have to decide is if the retention is meaningful enough to endure the change. Again, AGE producers are not yet on SmartStation. In February the system load will double. When PSI was added to SmartStation it was an ABSOLUTE and total nightmare.... For me and my clients (yours if you work at WS or AGE) change is going to happen. It can happen at WS or another firm.... the only quesiton is do I get paid to deal with the mess that IS coming. There is no way that Danny L isnt explaining those very basic facts to the WFC management team. WFC is in a tough spot. How do you explain a retention package that is smaller than what WS offered AGE brokers doing MUCH less on a per FA basis at a time when the market place is offering deals that are much bigger than they were when the AGE/WB merger occurred. The culture at WS is as different from MER as day is to night. If WFC floats a similar package as MER's they will lose people in droves.[quote=BukiRob] The issue isnt stay because there will be no change. Change IS coming… the only thing WS brokers have to decide is if the retention is meaningful enough to endure the change.[/quote]
Generally good points you make, BukiRob, but I would nit pick over the above comment.
I agree that change is coming regardless, but disagree that the only thing brokers have to decide is if the retention is enough to endure the change.
It’s not just the hassle of the transition - it is what exactly are you changing TO? I know lots of American just demonstrated that they are more concerned with the idea of change per se, but this still begs the question: change to what? If the retention is enough to endure the transition headaches, that is only a small part of the equation.
What will you be changing to over the long term, especially once the transition period is over (for this merger)?
FAs face change all right. But they ought to recognize that they need to decide much more than you mention - they need to decide where they choose to work, which in turn will determine what type of change they need to “endure” or not.
There is no way that Danny L isnt explaining those very basic facts to the WFC management team. WFC is in a tough spot. [/quote] I can assure you that he is explaining those very facts--and he is worried about it. He told a group of us yesterday that the package has been presented to WFC and we should be hearing something soon. He went on to explain there is a very basic difference btw "brokers" and bankers, and generally banks dont see why we should be comp'ed to keep our jobs. I was surprised by his candor, and willingness to discuss details about the past few weeks. I certainly am not one to EVER drink the Koolaid---however, if you get just a fraction of his vision...it looks pretty damn good comparatively speaking.[quote=Gordon Gekko]
There is no way that Danny L isnt explaining those very basic facts to the WFC management team. WFC is in a tough spot. [/quote] I can assure you that he is explaining those very facts--and he is worried about it. He told a group of us yesterday that the package has been presented to WFC and we should be hearing something soon. He went on to explain there is a very basic difference btw "brokers" and bankers, and generally banks dont see why we should be comp'ed to keep our jobs. I was surprised by his candor, and willingness to discuss details about the past few weeks. I certainly am not one to EVER drink the Koolaid---however, if you get just a fraction of his vision...it looks pretty damn good comparatively speaking.[/quote] I know the CEO of WFC views WS as a the jewel of WB and that he is "very excited" about having a national scale brokerage firm. I have been told that BAC was supposedly shocked to learn that they needed to offer retention packages to brokers...[quote=BukiRob][quote=Gordon Gekko]
I still think the package they offer is going to be fairly close to what was offered AGE when WS aquired them.