AGE cutting payouts

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Jan 20, 2006 11:54 am

I knew it was coming, AGE is raising commissions and cutting payout.  Although it's not by much.  It still appears we have the highest payout among the regionals and wirehouses though (by a nice margin). 

Jan 20, 2006 12:14 pm

How are you the highest in wirehouses?


What is the payout for someone doing 500k a year?


Wachovia has the highest for wirehouses except for the small producers.

Jan 20, 2006 1:54 pm

"We have the best payout of all the wirehouses...."


Compared to indy, that's kinda like saying:  "We have the best McDonald's franchise in town...."



Ok....so?

Jan 20, 2006 3:26 pm

dude, you'd know better than me, but at least based on an analysis done by OnWallStreet magazine last year, AGE had the lowest payout among the 15 wirehouse & regional firms they measured at varying production levels ($1mm, $600k, $400k) and second lowest for $200k producers (beating out RBC Dain).  That's at least based on the assumptions they made for product mix. 


They didn't include any non-cash comp in their calculations, so maybe AGE has a ton of deferred comp, stock awards, etc. that make up the difference to reach your conclusion of them having the highest payout.

Jan 20, 2006 3:50 pm

Joe,


Why do you, as an indy, need to persistently remind anyone and everyone (who already know) that indys have a higher payout (and higher expenses) than others, aka wirehouses, regionals, banks, etc


Are you trying to prove something?  I thought you wanted this to be a productive forum.

Jan 20, 2006 5:35 pm

Look,


I was not bragging, frankly I don't give a sh*t if someone gets a 20% or a 90% payout.  There's room for all of us.  I was just pointing out a fact that's all. 


Sounds like y'all have your panties all wound up from your jones rumble royal.  For anyone who keeps up with the industry it's well know that AG Edwards is considered to pay it's employees (brokers and back office) too much (from a shareholder perspective of course), in fact last months' ON Wall Street had an article about it.  Compensation at AGE makes up about 65% of expenses compared to about 50% for the wirehouses and most firms (not including indy's).


2004's 401K contribution was 12% , 2003 9.5%, 2002 9%, 2001 9%, 2000 11.5%, 1999 14.5%


Avg 401K contribution over last 6 years (does not require participant to contribute at all) is 10%


Payout on fee business is flat 40%, mutual funds are generally the same (except for small transactions).


So without getting into the bonus structure (for sake of simplicity) you can see that the payout is generally about 50% no matter who you are (unless you are penalized for being a "small producer over 5 years in doing <$162,500 gross").  For those getting bonuses it gets much nicer.


As for the indy guys who love to stroke their own indy d*cks, you sound like the Jones guys (We work for the best firm on the street!), and all the other kool aid drinkers.  I don't care who you work for (except Primerica, or chop shops which are pure junk), it's the broker and his/her clients.  Everything else is self fufilling ego gratification and delusion.  As long as the client is well served, what's it matter?

Jan 20, 2006 6:09 pm

What really stinks is the haircut on VA's.


It WAS a 50% payout (one of the highest among all wirehouses).


Now it's at 44% (a 12% pay cut)


I'll be working weekends for the next month getting in those hanging contracts that I've been dragging my feet on


Jan 20, 2006 7:31 pm
BankFC:

Joe,


Why do you, as an indy, need to persistently remind anyone and everyone (who already know) that indys have a higher payout (and higher expenses) than others, aka wirehouses, regionals, banks, etc


Are you trying to prove something?  I thought you wanted this to be a productive forum.



I guess I just couldn't resist....and you are correct on all county.  My apologies.....

Jan 21, 2006 12:05 am

I really APPRECIATE such a mature response...


Class act!    

Jan 21, 2006 1:49 am
BankFC:

I really APPRECIATE such a mature response...


Class act!    



Thanks.  Hey if I'm trying to teach my kids to be good little people I need to practice what I preach...


Jan 25, 2006 3:51 pm

what else do we know? I heard they were raising stock tickets from 40 to 50-ish. Options 20 to 40. money markets decreased and mutual funds took a big hit too.


in the bigger scheme of things, this is going to peeve a lot of people off when this kicks in in march.

Jan 25, 2006 4:58 pm

joedabrkr:
BankFC:

I really APPRECIATE such a mature response...


Class act!    



Thanks.  Hey if I'm trying to teach my kids to be good little people I need to practice what I preach...


 ...that was funny.


...just sitting here stroking my...checkbook...

Jan 25, 2006 5:02 pm

It certainly won't be an Advest type of exodus.  Nothing like it would be if they sold the firm.  It will just be mostly noise when all is said and done.  They're still too happy there to see big movement.


Plus, most of those that will leave, have already more than likely been in the pipeline for a time prior to this.

Jan 25, 2006 5:18 pm

What kind of graphics do you have on your checks, indy?


Jan 25, 2006 7:39 pm

The paycuts suck, but it's still a great firm to work for. I'm waiting for us to

get bought out and I can either go indy or take a 600K check. Either way,

life is good.

Jan 25, 2006 8:02 pm
dude:

What kind of graphics do you have on your checks, indy?


Don't get excited, Dude...they're pretty plain...

Jan 25, 2006 8:15 pm
BrokerRecruit:

It certainly won't be an Advest type of exodus.  Nothing like it would be if they sold the firm.  It will just be mostly noise when all is said and done.  They're still too happy there to see big movement.


Plus, most of those that will leave, have already more than likely been in the pipeline for a time prior to this.



You're right BR.


We are doing some b*tching about the cuts today because there were company wide meetings today that allowed brokers to vent to the regional vp's about our displeasure with the cuts & when all said and done, many of us after the meeting huddled to discuss the meeting and I don't know of any producers even remotely thinking about leaving because it's still a great place to build a business.


There were no cuts to fee based so I'll squeek by since my book is mostly fee's.

Jan 25, 2006 10:16 pm

AGE Brokers ranked lowest in IQ amongst Regional Firms.  Why do you raise commissions and fees to clients and lower payouts to brokers?  Do one or the other but don't do both.  Remember that internal memo on the Mass complaint and the October Wells Notice by the SEC.  A head honcho opened his not so smart mouth and said a settlement is coming.  Guess who is paying?  Please make your check payable:  U.S. Treasury Department.

Jan 25, 2006 10:33 pm

Jan 25, 2006 11:15 pm

I had almost ruled you out as just another juvenile 20-something wannabe...now, I'm not so sure...