Editor's Note: This story was updated May 16, 2001
Morgan Stanley enraged brokers last December when, without warning and on two weeks notice, the firm boosted its minimum gross production requirements. But, in light of the down market and with the prospect of brokers fleeing the firm, Morgan Stanley announced last week that it was reducing the minimum to $200,000 for eight-year veterans.
The previous minimum was $250,000. Brokers failing to meet the minimum would have payout cuts from 36% to 25%.
"It was incredibly generous to go to $200,000," says one Morgan Stanley broker about the firm's action, announced last week via a conference call. "In the long run, it'll pay off in broker loyalty."
When Morgan Stanley raised the production bar in December, it was "a big slap in the face," according to the rep.
Under the new plan, the minimum for three- to five-year brokers is $150,000; minimum for six- to eight-year reps is $200,000; minimum for nine-year reps is $300,000.
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