MSSB Comp
MSSB announced the new comp plan today. Anybody hear about it?
Be Patient has a few calls into corporate. Let’s wait to hear from him
Its the new 100% plan, the company gets 100% the advisor 0%. The good news they promise not to mess with comp any more.
Very nice surprise. Everyone seems to be very happy. Penalty box back to 250k and Grid back up to were it was in 2008. Lots of the old benfits back losing only FCAP with the 25% discount.
Account minimums now $100k for payout
[quote=TopNotch]
Account minimums now $100k for payout
[/quote] Not exactly. There is still a payout. It's just reduced. I like it. It's a good incentive to get rid of any sub $100k accounts and build a real book. You can say, I'm sorry it's not me....it's the firm. Let the "independents" fight over them.You are giving BP too much credit..the story was never he had a direct line to the top. It was something like his wifes friend knows a lady who knows a guy who knows someone at the TOP. It takes years to get connections in place like that, no way he has had time to get that dialed in yet. Of course it would ultimately come out that this will increase his business from T-12 1,689,935 to 3,332,635 for 2010.Be Patient has a few calls into corporate. Let’s wait to hear from him
[quote=Lex123][quote=TopNotch]
Account minimums now $100k for payout
[/quote] Not exactly. There is still a payout. It's just reduced. I like it. It's a good incentive to get rid of any sub $100k accounts and build a real book. You can say, I'm sorry it's not me....it's the firm. Let the "independents" fight over them.[/quote] Typical brainwashing, "I don't mind getting paid less". So, you are actually ok with having the firm cut your pay while you do the same amount of work? You have managment written all over you.[quote=Lex123] [quote=TopNotch]
Account minimums now $100k for payout
[/quote] Not exactly. There is still a payout. It’s just reduced. I like it. It’s a good incentive to get rid of any sub $100k accounts and build a real book. You can say, I’m sorry it’s not me…it’s the firm.Let the “independents” fight over them.[/quote]
I will take your $100K account no problem… THey will be a nice addition to the $400-800K account I take from you now…
comp plan seems to be the same three card monte they play every year. it is a disappointment but it would be hard for the upper management to change now and come forward with a transparent competitive pay plan. they unfortunately have shown that they will be the same disingenous characters that they were before the two firms were put together.
My guess is you will see a bump in the number of FA's leaving over the next 6 months. Not the under 300k producer but the higher end.[quote=AGEMAN] [quote=TopNotch]
Account minimums now $100k for payout
[/quote]Is that an account minimum or a HH minimum?? If you have a client that has well over 100k with you but has an IRA or any individual acct under 100k, do they give you a lower payout on that acct??[/quote]
The $100k is a HH Minimum, not an Account Minimum.
does the 100k apply to fee based? (fund solution) (choice – or whatever its called now)
yes. it applies to all HH under 100k fee or not.
Sad part is....Seems like this is a good initial step towards making us salary. This makes it impossible for a new guy to get into this biz. Make no mistake, this is going to be the new normal.yes. it applies to all HH under 100k fee or not.
According to one of the slides they showed us, the new comp plan is “net Zero” compared to the old plan. They just took comp from certain areas and redistributed it to others.
As a legacy SB FAA, I really got screwed. Beginning FAA comp was at 37% and went to 39% after $200k production. Now it has been dropped to 34% (ouch!)
They have all kinds of bonuses for growth, etc, like… you get $5,000 cash for every $1MM household you get… UNLESS you have been here less than 2 years. Then you get nothing!
They got rid of the BOM that hired me and brought in a new one. I miss the nice one who made sure my A/C was working properly. This new one sucks! When another FAA started asking questions about why we were not eligible for any extra bonuses and why our payout has dropped so much… the BOM literally shouted, "You just need to forget about this and start selling!"
Apparently, there is a new FAA comp plan guide that has some other types of bonuses for FAA’s but the BOM refused to show any of us when whe asked. Is this typical management behavior? I find it to be quite odd…
I miss my old manager…
[quote=MBA2FA] According to one of the slides they showed us, the new comp plan is “net Zero” compared to the old plan. They just took comp from certain areas and redistributed it to others.As a legacy SB FAA, I really got screwed. Beginning FAA comp was at 37% and went to 39% after $200k production. Now it has been dropped to 34% (ouch!)They have all kinds of bonuses for growth, etc, like… you get $5,000 cash for every $1MM household you get… UNLESS you have been here less than 2 years. Then you get nothing!They got rid of the BOM that hired me and brought in a new one. I miss the nice one who made sure my A/C was working properly. This new one sucks! When another FAA started asking questions about why we were not eligible for any extra bonuses and why our payout has dropped so much… the BOM literally shouted, "You just need to forget about this and start selling!"Apparently, there is a new FAA comp plan guide that has some other types of bonuses for FAA’s but the BOM refused to show any of us when whe asked. Is this typical management behavior? I find it to be quite odd…I miss my old manager…
[/quote]
Yes, that is typical behavior. They screw you and try and tell you it’s for the best. Enjoy 34% while it lasts.
I am on the SB side too. I have asked around and they do not even have a new FAA comp plan out yet. So anything you here now is just rumor. I did confirm we are going to be held to the $100K small household policy and that are grid will likely be the 34% lower one. That is still much better than most big firms starting out. I was in banking for 4 years before this. Just a hint on your manager, you shouldn't care a bit about them other than the fact of what they can do to help you. You will have probably 3 - 4 manager changes in the next 5 years I bet. Some will suck, some will rock, but the only thing that truly matters is you.According to one of the slides they showed us, the new comp plan is “net Zero” compared to the old plan. They just took comp from certain areas and redistributed it to others.
As a legacy SB FAA, I really got screwed. Beginning FAA comp was at 37% and went to 39% after $200k production. Now it has been dropped to 34% (ouch!)
They have all kinds of bonuses for growth, etc, like… you get $5,000 cash for every $1MM household you get… UNLESS you have been here less than 2 years. Then you get nothing!
They got rid of the BOM that hired me and brought in a new one. I miss the nice one who made sure my A/C was working properly. This new one sucks! When another FAA started asking questions about why we were not eligible for any extra bonuses and why our payout has dropped so much… the BOM literally shouted, “You just need to forget about this and start selling!”
Apparently, there is a new FAA comp plan guide that has some other types of bonuses for FAA’s but the BOM refused to show any of us when whe asked. Is this typical management behavior? I find it to be quite odd…
I miss my old manager…
I miss my old manager…
[/quote]
Let's face it, it sucks to be a manager today. Most have ZERO options aside from toeing the company line and sucking it up. Too many have been non producing managers for years and now they're essentially forced back into production, pay cuts, etc and for too many rather late in the game for them personally.
MBA man, i think you should post the name of your manager, so that he cant recruit. Then he’ll lose his job and you’ll have a new manager!
Has anyone heard anything on the new FAA comp plan? My manager won’t tell us anything.
We just know we are on the reduced 34% payout and not eligible for any of the other bonuses (new accounts, etc).
In the old plan, FAA’s could earn cash bonuses for growth in addition to the base payout. The BOM won’t tell us if that is still in effect, if it’s gone, or if there is some other type of program.
Does anyone know ANYTHING?
Financial Advisor Associate - trainee at SB
I spoke with an MSSB FA yesterday. All accounts under $100,000 are subject to no commission on tickets. For managed accounts, payout is 10% under $50,000; 15% from $50k to $74,999; 20% from $75,000 to $100k.
I’m also close to FA’s in Los Angeles, who told me that there are several FA’s taking early retirement. The legacy package with a 5-year payout based on trailing 12 will actually be more of a benefit than trying to rebuild the part of the book that the firms are now taking.
As a new Indy, I think it’s crazy. A $100,000 account was an account that was $170,000 just a year or two ago, not even including withdrawals. And in small markets like I came from, there just aren’t that many people with those account sizes. So the firms will be beating themselves up trying to get the same accounts. And the rest of us grab the rest.
I wonder how many households in, say, Des Moines, Iowa would take kindly to hearing that their $95,000 IRA isn’t worth fooling with?
Wirehouse guys are whinning again!
Why am I not surprised! One week they are on here bragging the next whinning! I do not feel sorry for them, they have had several years to get out and yet they fall prey to next deal (bone) the firm throws them. It is tough to move a book agreed, but at this point they are like frogs in boiling water they just stayed in the pot and just now noticed the water is hot.Greenbacks:
"Wirehouse guys are whinning again!" Winning is spelled W-I-N-N-I-N-G! There's no H in winning.
Bodysurf, you are wroing on many counts. Why do you post innacurate, secondhand, lost in translation information. You have stated "I spoke with an MSSB FA yesterday. All accounts under $100,000 are subject to no commission on tickets. For managed accounts, payout is 10% under $50,000; 15% from $50k to $74,999; 20% from $75,000 to $100k." First, it is a small household policy not a small account policy. The decrease in payout is applied to households under $100,00. How many relationships do you really want that don't have $100,000 for all family members and their accounts? Next, there are many exceptions to the policy. The following products/accounts are at full grid regardless of household size:DVP, Futures, Insurance and annuities, new households (last 6 mos.), 529 plans, AI, Retirement plan trusts, SAR-SEP, SEP/IRA, SIMPLE IRA's, VIP/RPM accounts, mutual fund wrap and managed accounts @ 10% if household less than $25,000 otherwise full grid. The bigger issue is the lowered grid at under $400M. At $375M it amounts to 38%. That's 2% less on tier 1 and 1% more on tier 2 (transactional) business. This is easily offset by opening three $1,000,000 household during the year ($5,000 bonus each). There are always good and bad changes to comp which generally favor top producers and larger client relationships. If you carefully go through it you can find enough loopholes to make a good living and continue to build that pension.How many relationships do you really want that don’t have $100,000 for all family members and their accounts?
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I’ll take all the ones you don’t want. The reason you think a $90,000 relationship is garbage is because you’re not getting paid for them. I am. What’s more, I would rather have 10 $75,000 accounts than 1 $750,000 account. I manage them all the same way, and I know that the smaller accounts are off limits to the big wirehouses.
And no, you’re wrong. A managed account between $25k and $100k is not at full grid. Ditto for your TRAK program. In the past, you used to get paid for IRA and FMA fees. Then they changed it to say it counted for phantom gross–to hit breakpoints–but paid nothing. Now, you don’t even get that.
I wish you the best at MSSB. I’m going to be picking up a 3.5% position in MSSB at options expiration next week, given how much more profits the first is sure to pick up, courtesy of its sales force. Morgan Stanley will be a money machine to its stockholders. For its brokers, not so much. So, thank you, in advance.
BTW–your “new household” exception only applies when the client eventually sends in enough money to go over the $100,000 minimum. I was at SB for five years.
Maybe that’s true for legacy SB. I couldn’t say, I’m legacy MS. Managed is at full grid over $25,000. If you have 10 $75,000 accounts vs. one $750,000 account don’t you need to make 10 times as many phone calls (if they answer your first call), record 10 times as many conversations in your notes, and review 10 times as many accounts every quarter.
My experience was that I started with a lot of smaller accounts...and they loved me so much I got lots of smaller referrals as well. I eventually had to change or I would've gone nuts. Call me lazy if you like but I prefer a smaller number of households...that allows me to be more attentive to their needs. Then I'll happily take the occasional referral from them. I still have many of the small households that I like. I'm talking about the ones that feel almost like family. I don't want to fire them. But we're so expensive for them I end up covering a lot of their fees. With new relationships I just send them somewhere else. It's better for them and better for me.Source URL:https://www.wealthmanagement.com/forums/whats-firms/mssb-comp