12% of what they retain is what was overheard in my office.  Good source.  Gives you an idea of why the managers are so rah-rah right now about the deal.

12% of what?  Avg gross of all the office?  Please elaborate.

[quote=benjamin]12% of what they retain is what was overheard in my office.  Good source.  Gives you an idea of why the managers are so rah-rah right now about the deal.[/quote]

That’s not what they said on the manager’s conference call. It's a little too confidential for me to post the actual numbers on a public forum but I can confirm this is not accurate.

They have to keep at least 80% of the production to get a bonus.  I do not know the amount of the bonus.

NEW YORK (Dow Jones)--Wachovia Securities isn't just courting A.G. Edwards (AGE) brokers to stay via a retention deal. It is also splurging on managers of the 745 A.G. Edwards branches that the Wachovia Corp. (WB) unit will absorb. Wachovia Securities unveiled a two-part retention deal for those managers. The first part will give managers 50% of their compensation as of the end of A.G. Edward's fiscal year on Feb. 28, plus 0.25% to 0.50% of the branch's total production, provided they are able to retain at least 75% of the commissions and fees that the office generates annually. The second part of the plan will be based on two snapshots. If the deal closes this October, the branch production bonus will be based initially on measurements taken in October 2008 and on July 1, 2007. Then, another measurement will be taken, based on October 2009 production versus that of July 1, 2007. Managers who are able to keep between 85% and 100% of their branch revenue on both cases will be paid a bonus equal to 50 basis points of the revenue they have retained, while those who retain between 75% and 85% can get an award of 25 basis points. The package applies to both nonproducing and producing managers - those who oversee a branch while keeping their own book of business. Producing managers will also be entitled to the retention deal that Wachovia unveiled last week for A.G. Edwards' 6,745 financial advisors on top of the bonus for managers. A Wachovia spokesman confirmed details of the retention deal. "It's a big financial loss to the firms if they lose managers, particularly those who have a strong bond with their advisors," said Andy Tasnady, a compensation expert who deals with Wall Street firms. Managers in regional firms that tend to have more collegial atmospheres than large wirehouses play a crucial role in convincing financial advisors to stay, Tasnady said. Wachovia, which expects to close its $6.8 billion acquisition of A.G. Edwards in the fourth quarter, is hoping to lose no more than 3% of the brokers that it wants to keep, which is similar to the "regretted" attrition rate that the company saw when it acquired Prudential Securities in 2003. Although Wachovia's retention deal for brokers is rich enough compared with those offered by other major firms that have acquired regional brokerages, some observers question whether it is lucrative enough to retain top brokers amid a fierce recruiting war for prized advisors. Wachovia announced its retention bonus for A.G. Edwards brokers last week. The bonus plan offers brokers 20% to 100% of their annual commissions and fees via an upfront cash payment in the form of a forgivable loan or cash award in six equal installments and an additional cash retention award that they get after 10 years. Separately, RBC Dain Rauscher announced Thursday that it has hired Doug Carl, a 17-year A.G. Edward broker veteran who produced more than $1.6 million and oversaw more than $200 million in client assets. Carl, who jumped ship this month, joined the Royal Bank of Canada (RY) unit in Portland, Ore. His plans to join RBC, though, has been in the works prior to the announcement of the Wachovia-A.G. Edwards deal, said a person familiar with his move.