For sticking it out during the transition of the merger with Royal Bank of Canada, Dain Rauscher reps will receive retention bonuses worth an estimated $100 million, according to Ron Tschetter, president of Dain’s Private Client Group.
The four-year plan will distribute bonuses in phantom Royal Bank of Canada stock based on production from October 1999 to September 2000. The shares will be valued at the price five days prior to the closing of the deal in December. A portion of the phantom stock will be paid out in cash at the end of each year (one quarter vests each year).
The bonuses shown below are for reps with five or more years of experience and production of more than $300,000. Reps with less than six years experience can qualify for a 22.5% bonus; and veteran producers with annual gross of under $300,000 are eligible for a one-time 5% cash bonus if they boost production 15% or more in 2001 and crack the $300,000 level.
Dain Rauscher Regular Retention Program
Production Ranges--Retention Award
$1,675,000 or more--35.0%
$870,000 to $1,674,999--30.0%
$630,000 to $ 869,999--25.0%
$530,000 to $ 629,999--22.5%
$455,000 to $ 529,999--20.0%
$375,000 to $ 454,999--17.5%
$300,000 to $ 374,999--15.0%
Source: Dain Rauscher
