Starting Salaries at ML, UBS, SB

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Jul 4, 2006 10:05 am

For those of you who are wondering.. here is a break down of the top three. 


Starting Salaries


Merrill Lynch is on the high side, but "buyer beware"...   Usually between 40K and 80K.


UBS is up there also.  Usually between 50K and 70K.


Smith Barney is decent too.  Usually between 45Kand 70K.  (I have a candidate I was able to negotiate 100K for, but that was an exception)


Total Compensation


At Merrill, you only get to keep commissions if they exceed your salary in any given month. Definition:  monthly forgiveable draw.


At UBS, it's salary plus commissions, but if you are not meeting your goals, they take a percentage of your salary away.


At Smith Barney, it's salary PLUS commissions, and if you're not meeting your goals, they only bonus you less than if you are meeting your goals.


Translation


Let's assume you have been offered 60K (5K each month) at each of the three firms,and let's assume you are are beneath your goals and only generated  4K in commissions that month, of which your take is about $1,200. 


At Merrill, you take home 5,000 that month.


At UBS, you take home 85% of your salary, plus the 1,200.  That's about  4,250 plus 1,200 = 5,450.


At Smith Barney you take home 6,200.


Jul 4, 2006 11:15 am

Thanks for the post, Ace.


To me, it's always interesting to get an inside view of how the "big boys" operate.

Jul 4, 2006 11:21 am

Yeah AGE hs offered me 50k to jump aboard...they told me it was "preapproved"..XP

Jul 4, 2006 11:23 am

still, it's a great offer for a 26 yr old. I dont know what happens in yr 2 and 3 and despite not working for the biggest team in the world i might jump at the chance just for the money (plus, the quotas are realistic and very do-able)

Jul 4, 2006 12:35 pm

Hey Anabuhabkuss,


Congrats.  You're right, that is good for a 26 year old.  My advice is to work your butt off for a couple of years, show some strong production, and then re-visit your options.


Option A: Go to a bigger firm


Option B: stay where you are


Point being, when you are a proven producer, everybody wants to hire you!


Good luck!


Jul 5, 2006 2:51 pm
RecruitingAce:

For those of you who are wondering.. here is a break down of the top three. 


Starting Salaries


Merrill Lynch is on the high side, but "buyer beware"...   Usually between 40K and 80K.


UBS is up there also.  Usually between 50K and 70K.


Smith Barney is decent too.  Usually between 45Kand 70K.  (I have a candidate I was able to negotiate 100K for, but that was an exception)


Total Compensation


At Merrill, you only get to keep commissions if they exceed your salary in any given month. Definition:  monthly forgiveable draw.


At UBS, it's salary plus commissions, but if you are not meeting your goals, they take a percentage of your salary away.


At Smith Barney, it's salary PLUS commissions, and if you're not meeting your goals, they only bonus you less than if you are meeting your goals.


Translation


Let's assume you have been offered 60K (5K each month) at each of the three firms,and let's assume you are are beneath your goals and only generated  4K in commissions that month, of which your take is about $1,200. 


At Merrill, you take home 5,000 that month.


At UBS, you take home 85% of your salary, plus the 1,200.  That's about  4,250 plus 1,200 = 5,450.


At Smith Barney you take home 6,200.





In the interest of candor, when you post one of these comparisons, how about noting that you're only paid to recruit for SB?

Jul 5, 2006 3:32 pm

isn't what he described a drawal?

Jul 5, 2006 3:47 pm
anabuhabkuss:

isn't what he described a drawal?


Drawal?  Like a Southern speech pattern?

Jul 5, 2006 5:09 pm

dont ask me what i was thinking or doing when i typed that.


anyways yeah, monthly draw. is money still owed by the new guy if he has a bad month? from my understanding, if you have a draw and generate commish of say 1000, in this instance does that 1000 simply go to the company without burning a hole for yourself?

Jul 5, 2006 5:17 pm
mikebutler222:

In the interest of candor, when you post one of these comparisons, how about noting that you're only paid to recruit for SB?


That thought crossed my mind also...and why you're at it, some of us might be curious where Morgan Stanley comes in at...

Jul 5, 2006 5:35 pm
Indyone:
mikebutler222:

In the interest of candor, when you post one of these comparisons, how about noting that you're only paid to recruit for SB?


That thought crossed my mind also...and why you're at it, some of us might be curious where Morgan Stanley comes in at...



are you not with it all you have to say is morgan as in i will be getting an offer from morgan and want to know if i will have to repay my training costs when i fail to open a single account

Jul 6, 2006 5:34 pm

NASD Newbie...


If I'm not mistaken, from reading these threads, Indyone is actually Independent and probably not looking to "jump into the business" with Morgan Stanley. 

Jul 6, 2006 6:03 pm
entrylevelFA:

NASD Newbie...


If I'm not mistaken, from reading these threads, Indyone is actually Independent and probably not looking to "jump into the business" with Morgan Stanley. 



Who said he was?

Jul 6, 2006 7:42 pm
Indyone:
mikebutler222:

In the interest of candor, when you post one of these comparisons, how about noting that you're only paid to recruit for SB?


That thought crossed my mind also...and why you're at it, some of us might be curious where Morgan Stanley comes in at...



MS only pays a salary in year 1, but in year 2 it's a salary plus 50% payout ( on anything but stock & bond trades).  There is also a stock bonus at the end of year 2 of 20% of your revenue (also excluding stock and bond trades).


In this example the total could be as high as $7,000 cash plus $800 in stock.


Keep in mind that this may have changed in the last 30 days since Gorman is on a cost cutting tear.

Jul 6, 2006 7:52 pm

Actually, the exact compensation breakdown for Morgan Stanley depends on performance (I would imagine they all do), but in year 1 you receive salary, no commission, and a 20% trailing revenue bonus at the end of the first 12 months. Bonus at the end of year 2 is 25% trailing 12-month revenues, assuming you are in their "leaders" tier. Commission begins in year 2, also, if you last that long :)


iconsult100:
Indyone:

mikebutler222:

In the interest of candor, when you post one of these comparisons, how about noting that you're only paid to recruit for SB?


That thought crossed my mind also...and why you're at it, some of us might be curious where Morgan Stanley comes in at...



MS only pays a salary in year 1, but in year 2 it's a salary plus 50% payout ( on anything but stock & bond trades).  There is also a stock bonus at the end of year 2 of 20% of your revenue (also excluding stock and bond trades).


In this example the total could be as high as $7,000 cash plus $800 in stock.


Keep in mind that this may have changed in the last 30 days since Gorman is on a cost cutting tear.

Jul 6, 2006 8:33 pm
NASD Newbie:
entrylevelFA:

NASD Newbie...


If I'm not mistaken, from reading these threads, Indyone is actually Independent and probably not looking to "jump into the business" with Morgan Stanley. 



Who said he was?



It seemed as though you were implying so...perhaps I was just reading too much into it. 

Jul 6, 2006 10:56 pm

I just threw MS into the mix because Mike had pointed out the SB recruiter's bias, and I knew Mike was with MS.  I honestly thought that MS would merit a mention with the other three...they surely are considered in the same ballpark, aren't they?


...and yeah...I don't ever intend to be someone's W-2 bitch again...just thought I'd clear up that question in case anyone wondered...

Jul 7, 2006 8:36 am
Indyone:
mikebutler222:

In the interest of candor, when you post one of these comparisons, how about noting that you're only paid to recruit for SB?


That thought crossed my mind also...and why you're at it, some of us might be curious where Morgan Stanley comes in at...



I really couldn't tell you, Indy, I haven't spoken to a recruit in a long while...

Jul 7, 2006 1:08 pm
iconsult100:
Indyone:
mikebutler222:

In the interest of candor, when you post one of these comparisons, how about noting that you're only paid to recruit for SB?


That thought crossed my mind also...and why you're at it, some of us might be curious where Morgan Stanley comes in at...



MS only pays a salary in year 1, but in year 2 it's a salary plus 50% payout ( on anything but stock & bond trades).  There is also a stock bonus at the end of year 2 of 20% of your revenue (also excluding stock and bond trades).


In this example the total could be as high as $7,000 cash plus $800 in stock.


Keep in mind that this may have changed in the last 30 days since Gorman is on a cost cutting tear.



Do you know the first year asset and revenue targets?  Thanks.

Jul 7, 2006 1:29 pm

I think their 2 year AUM goal is $12MM, not sure I would imagine 1/3 of that is the 1st year.  That would make it an even $2MM/quarter, but I'm not sure.  I'd tell you for sure but I never made it through to recruiting!   Also, I have no idea what the revenue targets would be.