The "New" MSSB FAA Comp Plan
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Apparently there is a new comp plan called FAA. I was hired under the "old" comp plan called RFE (Rech for Excellence).
There is a bit of a rebellion going on.
The new plan, for hires I think starting in October has the following- from memory
1st year Exceelent level is 3.6 mil in assets, 50K production and if you hit the goals, you get $12,000 in bonus
2nd year it is like 6-7 mil AUM and I think 70K production, and you get bonuses of $15,000
3rd year 12 mil AUM and 120K production $36,000 in bonuses
The old plan
1st year 7 mil AUM and 70K production 8K bonus
2nd year 15 mil AUM and 150K production 12K bonus
no third year comp
50% payout on fee based, 10% cash bonus of production if tier one, 10% restricted cash- you sign a 2 year promissory note.
For those under the old plan, they are getting screwed. The new plan asks for about half the AUM and production, pays much higher bonuses and has a thrid year of 36 K in bonus. The new plan gives you three years to get to where you need to be in the old plan in 2 years, and you will receive $43,000 more in bonuses for doing the same work in three years compared to two.
I am very disappointed- I am under the old plan and have not started production yet-
It sucks. Management says we cannot get into the new plan. Why switch plans- to insure more people succeed and retain more FAs, is what management says- so why not extend it to current trainees?
Really sucks.
Really.
Any thoughts or ideas?
Too early to jump ship, but I know this is indicitive of treatment going forward....
What is the base comp during the new/old plan? Does it carry into the third year?
With all due respect, if you are a first year FAA and you are already bitching and moaning about management, you should just pack it in.
You haven't earned that right yet.Quit being a wimp and produce… You are complaining about 3rd year bonuses when it is obvious you won’t make it to year 2. Update your resume and look for a new job.
I started, I got a salary of $25K. and there were no bonuses, you just had to produce. This job is about production, not bonuses or salary(called "subsidy")You liked the comp plan when you started there, don’t worry about the new guys comp plan. One thing is for certain–neither plan is requiring you enough assets to make a living. If no one has told you yet, once you are off your salary, you need $20 million at 1% to make 70k-80k per year at a wire.
I think the 50% payout is a huge item that is being overlooked. That could be a great opportunity for you. If you are performing well, then you will be rewarded for that effort.
I agree that the new program is foolish because half of the individuals who hit that top tier will still leave the business. The program tricks them into thinking that they are a big deal, when in reality they are barely getting by. Year 4 is the big wake up call. Big bonuses for rookies is pointless, in my opinion. Let's help them actually build a sustainable business rather than pushing sales goals.Compare base salaries…I’m in the new FAA class and have gone through this in detail with the RFE sitting right next to me. You know what they say about it always being greener on the other side…
Thanks for the replies.
Yes, when I initially heard others complaining, I literally said, what a bunch of whiners, you’re not even in production.
I also agree that the RFE plan requiring 15 mil after two years is just getting you started in the biz, with lots of hard work ahead.
Also agree that the numbers even for top tier need to be surpassed to succeed long term.
So, why did I post? Seems a bit of BS to pay people at the same firm more for half the production. And I felt like bitching about it- and my wife really doesn’t care…or my dog…but at least I got some feedback here!
Re the 50% payout, good point, of course one has to exceed the base salary for this to kick in.
I’ll run some numbers and see how things look.
Bringiton, I have no idea what others are making as their base, we don’t discuss it. Are you saying the RFE starting salaries are better? I don’t know if that is the case or not- could be the RFE people you talked to had a history of higher income and would have received the same amount under either plan.
Thanks to all…
[quote=iconsult100] I think the 50% payout is a huge item that is being overlooked. That could be a great opportunity for you. If you are performing well, then you will be rewarded for that effort.
I agree that the new program is foolish because half of the individuals who hit that top tier will still leave the business. The program tricks them into thinking that they are a big deal, when in reality they are barely getting by. Year 4 is the big wake up call.
Big bonuses for rookies is pointless, in my opinion. Let’s help them actually build a sustainable business rather than pushing sales goals.[/quote]
I disagree on the illusion of doing well. I think it is a great plan, especially for guys starting out. At least it gives the new guys breathing room to figure out the business. You can always hustle during the last half of the program to get where you need to be when they graduate you from the program.
You should see what they have at other B/D…not even close. Now I know why they have a hard time to recruit…MSSB is kickin everyone’s ass. This will attract the best talent no doubt.
The new comp plan is different, its actually harder to reach than your old plan goals.