What's the total of departed reps in the NE?
Quick and Reilly had about 1000 brokers prior to the Bank of America merger. In the Northeast markets that I'm familiar with, all of them have lost at least 30% of those brokers. They have been able to make up some of that lost ground by rapidly hiring new Pathways (trainee) brokers but they haven't been successful in recruiting experienced advisors. So my rough guess would be that they've lost 300 advisors and had a small gain of 50 recruits, mostly new people.
Some rumors are circulating that the Banc of America Investments president, Tim Maloney, will be let go shortly if he doesn't stem the tide in the Northeast. I'm not sure what he can do about it at this point. It's too late to revamp the comp plan (even though they just negotiated a small concession on the managed products) and the bank's referring partners, Premier Bank, is probably in worse shape than the investment side. It's odd, though, that the Consumer Bank (which is the Bank of America that most people are familiar with: checking, savings accounts, CD's, loans, etc.) is doing very well.
Premier Bank, is probably in worse shape than the investment side.
How so, I thought BAI people were leaving beacuse the comp suck and that the Premier Bank was getting too powerful?
Premier Bank itself is very well funded. They have high salaries, nice furniture, and even company credit cards. However, to get a bonus, they have to hit very high loan, deposit, and investment goals. Most are unable to hit their goals so they're under constant pressure by management. The ones that do hit the goals do it by circumventing the investment numbers. Therefore, most of the Premier Bankers are cranky (they have a high turnover rate due to morale) and the ones that are doing well don't need to refer any investments.
“Im a Banker now”!!!
just got off conf call and it seems I should be calling for Loan biz on my clients. I dont get paid for it (other than getting back the trails they stole in the form of a bonous at the end of the year) It is obvious to me that the premier side banking is where they make all the money. No mention was made that of 60 brokers in a large metro office only 20 will do over 200k in production, which is less than 40k a year at out that payout level. They dont care if we make money. they dont pay us a salary!! Why should they care. We are here as a sidekick to premier as their “investment guy” while they try to take the quarterback postion in the relationship
I've heard client managers are leaving, reps are leaving.
Last year in the some parts of the NE, approx 80% of 140 brokers did less than 300k (BOAs target level).
I hope all who are there aren't sticking around for things to "get better". Or worse, waiting to pick off accounts of people leaving for other firms.
It's a bank, not a brokerage firm. Big money will get kicked up to private bank. There is no way the product platform can compete with MS, Mer, SB, and the good independants.
Build your book for yourself, not the bank.
My buddy is a client manager on the west coast and she said that client managers are flocking away from BAC because they made the goals so hard that only a few can hit. Didn’t Fortune rated BAC the most admired megabank in 2005? The problem with the NE BAI people leaving, is the problem only isolated in that area or through out the country?
I think it will only get worse for the FA. When I can’t stand it any more. I’ll move on to indy.
I know of many departures from West, East and Gulf Coasts. I laugh when I read claims about BAC being one of the best companies in the U.S. at which to work.
One only has to look at their W2 and compare to 10 years ago; going in the wrong direction. Terrible salary and cost of living increases not even keeping up with inflation. Bonus not achievable!!
They are going to have a lot leave over the summer.I know of 4 300-500k prod brokers signing up with the indys I am not ready just yet
Glad I made the move out of there.I had a trailing 12 of over 500 ,so received a nice package to leave. In my opinion , 2 types of brokers still there 1) trails(managed and C shares )greater than 300k waiting for something to change.2) trailing 12 production less than 300 and offers to leave are hard to come by.
Since I have left ,former collegues have not stopped ringing the phones .DONT BE THE LAST MAN STANDING.
I'm still at BAC and two years ago, I HAD a trailing 12 of $500K+. I lost it while waiting for this place to get better (and converting my book). Thankfully, the companies I'm talking to are aware of the awful merger in the Northeast. They look at it as buying a broker at half-price. That's part of the reason why Indy is looking attractive now. The wirehouses understand that my 12 month production is ramping up again because I wrapped everything (although the net amount to me sucks with the new payouts) but they're still basing their comp deals on my low trailing 12.
BACFA, Good luck. you produced before ,you`ll do it again. If you have developed some good relationships,your clients will follow. I have taken every A client that I sought.B clients have been calling and I have been holding most of them off until my non-solicit is up. I know that I could take them (they called me) I just dont feel the headache from BAI legal team will be worth it .
How many of you are from the old Fleet model? What did their grid look like? I see a few guys looking at PNC as they have a nice upfront deal with a merger kicker retention bonus. It’s nice they rolled back the CSG grid however they need to fix the trail issue. They also need to comp on lending as many others do. Wild, Don’t pay us for a product, take away trails and then tell us if you do not send lending you will not get the “bonus” OUR money! Should be criminal!
I was from the old Fleet/Quick & Reilly group. On the normal grid, every tier was higher by 4-6%. Not as much of a change on the higher $1 million dollar producer; those were similar to Bank of America’s grid today. However, managed products were paying 50% but the platform was horrible so nobody used them. There were small haircuts on annuites but it wasn’t too noticeable because the bank branches were referral machines.
does anybody know when you ACAT fund strategies accounts, do the go over in kind or do they have to be liquidated to move?
Great question. I’ve had some managers say that it had to be liquidated prior to ACAT but I think that was to scare people from taking the book. I can’t imagine why it can’t be ACATed but I’ll know for sure (from a friend, not me) on May 15.
I agree that it can be acat'd. There may be a restriction on the account like fidelity PAS does. Once the restriction is lifted, the account goes. See if there are any instituitonal funds in the account. Some cannot be accepted at your new firm possibly because of a deal your current firm cut with the fund company.