Can you say annuitization?
Prudential Securities brokers had better get comfy with that wirehouse jargon for fee-based advisory business – or get used to making less money. Pru announced that it has introduced a new payout plan that reduces its compensation grid by one percentage point across the board for traditional transaction business, according to several brokers from the firm.
That’s the stick. The carrot? At the same time, the new plan allows fee-based producers the opportunity to raise their payouts by as much as 5% across the board, reps say. (See chart at right.)
In another move, Pru informed its retail workforce that it is cutting payouts by four points to brokers with 10 or more years of service who produce less than $200,000 in total production.
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Moreover, brokers producing less than $100,000 in revenue may be laid off, the firm says. Pru’s announcement mirrors a similar lay off schedule that Salomon Smith Barney recently implemented.
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Pru Joins Fee-based Party: Lowers Commission Payout, Increases Fees
Can you say annuitization? Prudential Securities brokers had better get comfy with that wirehouse jargon for fee-based advisory business or get used to making less money. Pru announced that it has introduced a new payout plan that reduces its compensation grid by one percentage point across the board for traditional transaction business, according to several brokers from the firm. Thats the stick.
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