Pretend For A Minute

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Jan 29, 2006 11:48 am

Pretend for a minute, you've just been installed a president of a major wirehouse. Turnover is rampant. (Assume you offer the same types of investments as your competitors.) Your first order of business is to keep the large producers from jumping ship. What do you do? Increase pay-outs? Hand out bonuses with an obligatory 5 year contract?


What would make a large producer refuse to take calls from a recruiter?

Jan 29, 2006 1:39 pm

Perhaps offer additional LP for those who stay?  Or are you referring to a different wirehouse?

Jan 29, 2006 1:45 pm
compliancejerk:

Perhaps offer additional LP for those who stay?  Or are you referring to a different wirehouse?



Tell me you're not calling EDJ a wirehouse, please.

Jan 29, 2006 4:13 pm

My example assumes a major wirehouse that recruits large producers from competitors, while suffering from its own large producers jumping ship.


It's somewhat like giving someone a transfusion while they bleed-out.

Jan 29, 2006 10:46 pm

They say informing your boss that you have a bigger offer and then getting an increase in pay... Is a loss in the end.. Something along the lines that within 6 months the employee is gone. Stats out there somewhere... Maybe this industry is different.. Seems everyone with time wants to go independent for best of both worlds... Of course this may be a falsehood, but just a theory.

Jan 30, 2006 8:10 am
doberman:

Pretend for a minute, you've just been installed a president of a major wirehouse. Turnover is rampant. (Assume you offer the same types of investments as your competitors.) Your first order of business is to keep the large producers from jumping ship. What do you do? Increase pay-outs? Hand out bonuses with an obligatory 5 year contract?


What would make a large producer refuse to take calls from a recruiter?



Massive deferred comp

Jan 30, 2006 8:33 am

Mike, succinct and very well put.

Jan 30, 2006 9:32 am

Treat those established, existing producers like you care.  Give them the tools they need and get out of the damn way!  Keep your sales meetings extremely brief and focused, maybe have "standup meetings" with no chairs to keep them moving along.


Take the money your throw around at new producers and the effort you spend 'rolling out the red carpet' for them and spend it on your existing advisors, perhaps dedicating a portion of it to marketing and sales assistance to help some of your 50th percentile guys take it to the next level instead of just calling them into your office every quarter and browbeating them.


Stop wasting money creating proprietary products and platforms that only the rookies use because most the established guys know better and won't succumb to subtle sales pressure disguised as 'information'.  Fire the investment bankers and most of the research staff, let someone else mess around with that stuff.  Use a small portion of the money you save to buy firm-wide subscriptions to Zacks, S&P MarketScope, and Value Line or Morningstar for all the advisors.  Maybe Zacks or Dorsey Wright.  Take the large sums of money you have left and either increase deferred comp, spend more money on branch-level support staff, or pay a huge special dividend to you shareholders-of which many are your long-time advisors.



Everyone will be happy and retention won't be such an issue.

Jan 30, 2006 7:26 pm

Everything JoeBroker says and fire anyone producing <$350,000 and

distribute their accounts to anyone >$500,000. Nothing like a fresh meat to

get big producers distracted from leaving.

Jan 30, 2006 11:06 pm
skeedaddy:

Everything JoeBroker says and fire anyone producing <$350,000 and
distribute their accounts to anyone >$500,000. Nothing like a fresh meat to
get big producers distracted from leaving.


dayum skee you're brutal!