BAI Retention

Oct 24, 2008 9:47 pm

Got “transition” package info today. Here’s how it looks:



2mm+   50%

900-2000 40%

600-900   30%

350-600   20%



all are paid in 3 annual installments beginning in 2010. paying 4% interest on unvested balance.



What are your thoughts? Would really have liked upfront note with same vest. Why do you think structured this way? I am in the 900 -2000 category.

Oct 24, 2008 10:00 pm

Bonded-

  What is BAI's payout grid.  I hear Merrill is change our grid to yours?
Oct 24, 2008 10:35 pm

bye bye ml fa’s. enjoy your life with the “bank” it should be fun, but not profitable, lucrative, or fullfilling.

Oct 24, 2008 10:40 pm

41% trailing 6 months annualized at one million. I think around 600 is 36 or 38. I can check on Monday. Can’t remember. We get about 6.5% additional in restricted stock if you make certain amount of deposit referrals to the bank about 4mm annually, and about 12 new bank clients per year. Pain in the ass with a couple other sort of admin things ou have to hit . Funded largely by a cut in 12 b1 fees, paid out at 30% with 10% used to fund the “success award.” Hear you guys don’t get paid at all on c shares or 12b1 fees. On a 2 man team doing 3mm, with about 500 coming from 12b1s.

Oct 24, 2008 10:44 pm

To ezmoney: not much should change for advisers. They’ll be amazed by the compliance, but other than that, it should not be much change for advisers. For us, we’re doing all the changing. But some of our guys are doing 6mm a year, so some real guys. Look out on the job cuts though. They say 7bb, they mean 9bb. They mean sooner than later. These charlotte guys will smile at you while they cut your throat.

Oct 25, 2008 12:37 am

Bonded-  You are correct we do not get paid on 12b1 fees.  It’s a real sore subject for most advisors. 

Oct 25, 2008 1:06 am

thats obviously going to be sore point for me. I suppose that will be as they say an opportunity to move to fees but What do you think about our package? There ae about 500-700 wirehouse type guys here. Just so you know, no leads. no leads at all. really. Some small pockets get them, but not with all you guys too. seriously.

Oct 25, 2008 1:09 am

having come from there I feel fo you guys. A very bad place to make a living.

Oct 25, 2008 1:18 am

ezmoney: you must be a recruiter or something or just one of those guys that you should just avoid in the office. You know the guys always bashing the firm and dragging people down around you. Can’t we all just get along and bitch with rationality?

Oct 25, 2008 1:23 am

harshworld: whats the mood like there? are you guys (mer) as big o Aholes like everyone says? seems from our vantage point like you guys don’t have to change at all, and we have conversions, systems, statements, training, management changes, everything. Most of our guys, at least the 1 millions dollar guys would rather go through that with a check in their pocket, than stay and go through it with you aHoles ( no offense). All cirlceling with 200+%

Oct 25, 2008 1:25 am
Bonded:

ezmoney: you must be a recruiter or something or just one of those guys that you should just avoid in the office. You know the guys always bashing the firm and dragging people down around you. Can’t we all just get along and bitch with rationality?

  LOL Spoken like a real broker that is dealing with the new reality.
Oct 25, 2008 1:28 am

brokerfee: nice! what do you have to add? More or less just looking for info. What do you know?

Oct 25, 2008 1:35 am

Sorry Bonded...I'm just browsing through this tread I'm not BAC or ML, I made already made my jump to freedom (Indy) from the wirehouse model. EZ is right about one thing and that is...no matter how much info you uncover as long as a large bank is involved the chances of building a good profitable business is almost impossible. But good luck to you.

Oct 25, 2008 1:41 am

Bonded:  Some of the “advice” on here will be a little harsh but you can certainly wean through the sarcasm.  You have less than 10 posts so you’re a little late to the Bank of America bashing in this forum.  No need to be defensive.

  On topic, I'm just shocked to get anything in terms of transition.  I'm suprised that BAC is as generous as they are, considering the peanuts they paid out during the Quick & Reilly / Fleet merger.  By the way, those stock grants from that merger STILL haven't vested and they're worth half of what they were 4 years ago (yeah,  I know, at least it's not zero).
Oct 25, 2008 1:44 am

Several restrictions on who is entitled to the BAC retention money (regardless of grid):

1. Anyone with a current transition package. 2. Anyone hired after December 2005.   Both of those caveats effectively eliminate half of the FA's in the Northeast, where there was a lot of turnover from Quick & Reilly.
Oct 25, 2008 1:47 am

I posted this on the Merrill Retention Bonus thread already.

They are doing absolutely nothing for FA's who started 2005 or later with any type of agreement regardless if you are a 350, 500, 800 etc. You are completly excluded which is a bunch of cra... I can see a group lawsuit coming from those 500 plus advisors who signed promissory notes based on working for BAI in bank setting not a wirehouse. At the least they should let all the people in that category be able to pay their notes back right now and get bonused back to do away with any remaining years on the notes.   I might be reading this thread wrong but from the conference call I was on for BAI today it sure sounds like the 2000 FA's at BAI will be transitioned to ML platform and nothing will change over there for a year. Keep the ML grid,etc.   The PB & I model appears to be dead which is great since most FA's never got referrals anyways and will not actually be on a wirehouse grid vs the lowly bank grid. Other pluses I would think is ML has there own clearing house instead of using the horrible NFS which claims no accountability for any errors, a superior bond desk and probably much better client connections and financial plan software.   Oh,  one thing will definitely change for all ML guys, NO MORE BROKERED CD'S! I'd bet money on that one.   Just a bunch of random thoughts. See pros and cons for the BAI guys nothing really changing for ML guys for the first year anyways then watch out for Lewis to start shedding the commission grid with reduced trailers etc.
Oct 25, 2008 1:47 am

BACFA you just ruined the weekend for all of theose NE bank reps that had plans to spend that whopping 20% bonus payout

Oct 25, 2008 1:49 am

BACFA,

ARE YOU SURE THAT ISN"T JANUARY 2005? It wasn't specified on the phone call but all of us assumed January. I have a lot of friends who came before December but after january
Oct 25, 2008 1:55 am

Isn’t it amazing how anything under 500k makes you feel like a scrub on either side. I remember at Jones you were treated like gold if you made that. I believe at 40% that is 200k net and a great living in almost all parts of the country. I guess you aren’t profitable enough at this firm because of the immense overhead of idiots at the top.

Oct 25, 2008 2:06 am

Broker Fee: If you had to deal with our measly “trailer” grid and awful bank partners, you’d be delighted with the 20%, too! 

  southcampus:  I was on the today's call but I'm not sure if it's the same one that you were on.  This forum doesn't like it when we mention names and I don't know whether there were multiple ones scheduled.  My guy said December 2005 but he also mistakenly said the trailing 6 month number was from January to August.  I couldn't find a printed version of the package anywhere.   I think BAC has made it very clear on this and previous calls that we are moving entirely to the ML platform.  Like you, I hated NFS so this will be a spectacular change.   I can only hope that the PBI model is dead.  All the CM's are talking about these days is loans and credit.  It gets pretty annoying.   I don't know about the fate of brokered CD's.  It's a popular product at ML but you're right, BAC is very heavy-handed about being a BANK first, anything else is second.   I believe that ML is giving the package to anyone that qualifies and the money is used to pay off any remaining notes (from a previous move).  Not sure why BAC won't do that with us.    
Oct 25, 2008 2:07 am
southcampus:

Isn’t it amazing how anything under 500k makes you feel like a scrub on either side. I remember at Jones you were treated like gold if you made that. I believe at 40% that is 200k net and a great living in almost all parts of the country. I guess you aren’t profitable enough at this firm because of the immense overhead of idiots at the top.

  I got AVP at MS in 2000 at 225K and the region manager handed me the a certificate, they took my picture and clapped at the "achievement."  Now 7 years later in a much tougher enviroment you are grouped with satan.. It is a totol joke what this business has become, now 500K and they make you feel like a deadbeat.  People doing 250k, 300K at most shops make north of 100K, a good living, if that is the $$$ they want to do good for them, if they want the extra headaches of 500k thats great also..My MS branch has 15 empty offices, a 150K guy would be better than the dust collecting on the monitor.
Oct 25, 2008 2:10 am

Honestly, I am wondering why they paid anything at all to 350k -500. Maybe some LOS perks, but really, should we be paying someone who no one else will give a deal to? Sorry… Hope they figure out some compromise between grids. This money will not keep me in my seat for more than a chance to look at new grid.

Oct 25, 2008 2:14 am

profitability breakeven is 240k at BAC. Why should they pay for somebody at BAI doing 350 when they make 20% or about 22,000 above 250. Keep working. someday.

Oct 25, 2008 2:17 am
Bonded:

profitability breakeven is 240k at BAC. Why should they pay for somebody at BAI doing 350 when they make 20% or about 22,000 above 250. Keep working. someday.

  Dont know about BAC bank branch..but do know the ML office around the corner has about 5 brokers in there about of 20+ offices..Do not think that empty office has a 240K breakeven point, 75% of the offices are empty.
Oct 25, 2008 2:47 am

per broker. not a well known number but fairly standard industry wide. Would suspect those brokers will be moved out or partnered depending on LOS

Oct 25, 2008 3:05 am
Bonded:

per broker. not a well known number but fairly standard industry wide. Would suspect those brokers will be moved out or partnered depending on LOS

  Know the manager there, lease was signed Jan 07 for 10 years.  And it has signage, it is not going anywhere unless they turn the floor into a teller training center. Guess thats an option, but if 240K is breakeven than why have they still been giving 100%+ deals to 3 people this year who were doing around 250K?  Think they do what it takes to put bodies in the chair.   One guy was LS 9 years 265K and got 125%.
Oct 25, 2008 3:48 am

I think that there will be some very rough times in store for many advisors involved in the transition process. Remember, the focus of BAC is ALWAYS on banking products, regardless if they are going to convert to the ML platform or not. The cross selling opportunities being advertised to the ML advisors are a facade, they really want it the other way around so they can get more business for the banking side. IMO, they will cut the dividend, the stock will drift lower, and advisors will jump like rats off a sinking ship over the next few years.

Oct 25, 2008 4:44 am

[quote=BACFA]

Several restrictions on who is entitled to the BAC retention money (regardless of grid):

1. Anyone with a current transition package. 2. Anyone hired after December 2005.   Both of those caveats effectively eliminate half of the FA's in the Northeast, where there was a lot of turnover from Quick & Reilly.[/quote]   This is a bit confusing to me.  I started at BAC in 2003 and received upfront cash forgivable over 6 years - ending in April 2009.  Am I eligible for the transition payment since I started prior to 2005 or am I not eligible since the final 1/6th of my note hasn't been forgiven??  Would I be considered someone with a "current transition package?"  My production falls in the $600 - 900K range.
Oct 25, 2008 1:58 pm

youv’e got a transition package. you’re out.

Oct 25, 2008 2:23 pm

A question for recruiters…

I have TT of about $450K, but LOS 10+. BAC hosed me. Am I attractive to other firms?

Oct 25, 2008 2:30 pm

you need to go indy.

Oct 25, 2008 2:57 pm

or regional

Oct 25, 2008 3:17 pm

What about lawsuit protection.  I believe the wirehouses have a no-lawsuit deal amongst themselves.  If I went indy or regional, would BAC sue me or put a restraining order on me?  Thanks for all your help.

Oct 25, 2008 3:41 pm
ezmoney:

youv’e got a transition package. you’re out.

  After talking to a few other BAI FA's, I'm not so sure I would be excluded.  I was hired as a recruit in 2003 and was not part of a larger "transition" like the Q&R acquisition.  It seems the eligibility restrictions are designed specifically to exclude the Q&R guys who may have rec'd some $.    Also, are we sure the first payment doesn't come until 1/2010 ????  We were thinking it was 1/2009.
Oct 25, 2008 7:42 pm

I'm in the Northeast and received the horrible QR package.  The FA's up here think that the exclusion means FA's that signed on individually with an upfront loan deal.  I can see why others may think it means a large transition package like the QR.

Maybe we're just all optimists (based on geography).
Oct 25, 2008 8:22 pm

[quote=BACFA]

I'm in the Northeast and received the horrible QR package.  The FA's up here think that the exclusion means FA's that signed on individually with an upfront loan deal.  I can see why others may think it means a large transition package like the QR.

Maybe we're just all optimists (based on geography). [/quote]   Hmmh - clear as mud!  I guess we'll have to wait until next week. 
Oct 25, 2008 9:12 pm

keep dreaming. you’re not included in the package.

Oct 25, 2008 9:24 pm
ezmoney:

keep dreaming. you’re not included in the package.

  EZ$, were you on the call?  Have you seen something in writing?  If so, please share.
Oct 25, 2008 10:08 pm

Something was mentioned about 2005 off the cuff but no clairty. A person coming on in 2005 got an upfront. Would NOT be fair if they didn’t get a RETENTION as they will still have to deal with transitioning their clients to the new platform. If it where me and I had to transition and get paid or transition and not get paid I would choose to get paid everytime. Silly if they are this shortsighted.

Oct 26, 2008 2:35 am

EZ…you are a little retarded, and don’t know the info.  I’ve been reading your posts for years, and you clearly ate paint chips as a child.

  Flipper......you are correct, according to what I am hearing.  If you were hired prior to 2005 with a package, I believe you do qualify.  The local MER manager called me today to compare notes, as I am BAI.  He believes the restrictions are similar at both firms.
Oct 26, 2008 3:44 am

<SPAN id=userPro111845 title=“View Drop Down” =“msgSidePro”>Piker1487 … Like you I have been a sporadic lurker on this forum for quite awhile.  I never thought I’d actually participate since it seemed like most of the time the discussions turned into pissing contests between guys who were most likely hanging by a thread in the business.  I suspect in many cases there’s a strong inverse relationship between number of posts and gross production.  Heaven forbid some successful experienced producers want to actually exchange some useful information. 

  That's interesting that you've already been contacted by a MER manager.  I guess soon we'll see the management shakeout.  I worked at MER prior to joining BAI.  I actually believe my BAI manager is stronger than the MER guy in my local market.   What is your understanding about when the first 1/3 of the $ will be paid?
Oct 26, 2008 11:15 am

I may have eaten paint chips but who had the balls to leave that sh!tty bank and go indy, succeed, and make more money than I ever dreamed of.

  Who is sitting at Bank of Amigo hoping and praying they get the package because they're struggling to do 200 gross. Who doesn't have the balls to leave and do for themselves and their family.  I'll give you a hint. YOU!
Oct 26, 2008 3:06 pm

Flipper...our understanding of thr 1/3 is that it will work like restricted stock....it'll be granted in January 09 and we will be able to look at it on our screen, but the first third will not be payable to us until 1/10.  Then on 1/11, the second 1/3...and so on.

The MER boss has been in contact about once a week.  He was trying to recruit me prior to the announcement, and now he's checking in to see how the attitudes are in the office.

I thought the MER management might dominate the combined firm, but our regional folks are saying that each position will have to compete and differentiate.  We do have some strong managers that will prevail.

Oct 26, 2008 4:48 pm

Well, if you can see it on your screen, it must be good! Believe me the bankers will run the show not the Merrill mgmt.

Oct 26, 2008 10:58 pm

ezmoney: first thing you’ve said thats “on the money”. But most of that will be be done higher up. Local merrill will win and especially in big city offices.