Salomon Smith Barney producers are mildly supportive of a bonus plan the firm instituted for annuity sales at the beginning of the year.
Brokers can earn nonretroactive gross commission bonuses of 5% to 20% based on annuity production (see “Bonus Annuity Pay,” right). The extra juice rewards sales of both internal and external products, and will be credited in the month following every quarter — April, July, October and January.
“I'm all for getting paid more,” says one Midwest rep. “But I don't consider it an incentive to do more of that kind of business if it's not appropriate for the client.”
|For Total Annuity Production of …||Brokers Get a Bonus Gross Credit of …|
|$250,000 and up||20.0%|
|SOURCE: SSB BROKERS|
“For brokers who do a lot in annuities, it's a good enticement to know you get a 12.5% bonus on the commission you generate by cracking $125,000,” adds a Florida-based rep. “But to get the highest bonus level, you have to do about $5 million in sales” at 5% gross. “Obviously, that's a lot of product.”
SSB confirms that the bonus began Jan. 1, but would not comment on specifics.