ML Payout Plan Announced
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Burton originally posted this on the billionth page of another topic, so without his permission I am re-posting his entry into a new topic.
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By Annie Gasparro
A DOW JONES NEWSWIRES COLUMN
NEW YORK (Dow Jones)--Merrill Lynch & Co. (MER) is likely to push out many of
its lower-producing brokers with its 2009 broker compensation plan, according
to people familiar with the new grid.
Executives at Merrill released the payout plan to branch managers Wednesday
afternoon and are set to announce it to the 16,000-plus brokers on a conference
call Thursday.
A Merrill spokeswoman could not confirm the plan because it has not been
released to employees.
The plan cuts the payout for brokers who have been in business six years or
longer to 20% of production if they generate less than $200,000 in production,
and 25% of production if they generate $200,000-$299,999.
The "penalty box," as some brokers call this category, also includes brokers
who have been in the business for 10 or more years and produce
$300,000-$399,999. They will receive a 35% payout.
"This is a huge cut for these people. Anyone who's in this penalty box is
going to leave," one Merrill broker said. "But I guess we're all bankers now."
Some brokers blame the major changes in the pay plan on Bank of America
Corp.'s (BAC) acquisition of Merrill, which was approved by shareholders this
month.
But the changes also come at a time when other firms are cutting pay for
similar categories of low-producing brokers. Brokerage analysts say that
overall, the industry is trending toward high producers.
The 2009 Merrill compensation grid is also a big change in that it includes
one payout rate regardless of product type or ticket size. For example, it used
to offer different percentage payouts for insurance sales or managed accounts.
The basic cash payout for brokers not included in the categories mentioned
above will be as follows:
$0-199,000 will receive 36% of production.
$200,000-299,000=37%
$300,000-399,000=38%
$400,000-599,000=40%
$600,000-799,000=41%
$800,000-999,000=42%
$1-1.49 million=43%
$1.5-1.99 million=46%
$2-2.99 million=47%
$3-4.99 million=48%
$5 million and more=50%
This new pay plan will be a step up for the high-end brokers bringing in $1.5
million or more in production.
With additional bonus opportunities, it could mean a pay increase for other
brokers, too.
There is also longevity award that provides brokers who have been with the
firm for five or six years and have at least $500,000 in production a bonus of
1% of production.
For seven-, eight- and nine-year brokers there is a 1.25% bonus if they bring
in at least $750,000.
For brokers with 10 to 14 years at Merrill doing at least $1 million in
production, the award is 1.5%. And for those with 15 years or more and $1.75
million in production, there is a 2% bonus.
Other bonus opportunities on the new plan include an award for bringing in new
clients with at least $250,000 in household assets.
It also offers brokers awards for doing more fee-based business as opposed to
commission-based business.
Similar new-client and fee-based account bonus opportunities were offered on
this year.
Households in the U.S. must reach $100,000 in assets for a broker to receive
to get paid for business done with the client.
The new plan goes into effect at the start of 2009.
I’m a recruiter and regularly monitor this site too. Decent business intelligence at times. What I think is pathetic are the few numbnut recruiters who post here hoping to drag the unsuspecting out. Get on the phone and grind it out you pukes. Earn some trust, build a rep, get your name and firm recognized for quality work and guidance. You make the experienced vultures like me look bad! What’s next, posts by “Studrecruiter” or Superturborecruiter" or maybe “TopGunrecruiter”… I could go on. Anyone want my handle? It’s for sale to the next douchebag that decides to openly use this sight for recruiting! $1.00
[quote=BrokerVulture]I’m a recruiter and regularly monitor this site too. Decent business intelligence at times. What I think is pathetic are the few numbnut recruiters who post here hoping to drag the unsuspecting out. Get on the phone and grind it out you pukes. Earn some trust, build a rep, get your name and firm recognized for quality work and guidance. You make the experienced vultures like me look bad! What’s next, posts by “Studrecruiter” or Superturborecruiter" or maybe “TopGunrecruiter”… I could go on. Anyone want my handle? It’s for sale to the next douchebag that decides to openly use this sight for recruiting! $1.00
[/quote]
What a tool.
Listen up tool vulture... just because you are having a tough time grinding it out... don't be mad.. My pipeline is full right now and we have represented top end brokers for the top firms for the last 11 years...so while you're sitting in your garage/office cold calling don't get mad at a few highly experienced recruiters who have been around this business for over 25 years. Just because times are tough "grinding it out" doesn't mean you need to spew your problems out on this board. Tell it to people that care.[quote=BrokerVulture]I’m a recruiter and regularly monitor this site too. Decent business intelligence at times. What I think is pathetic are the few numbnut recruiters who post here hoping to drag the unsuspecting out. Get on the phone and grind it out you pukes. Earn some trust, build a rep, get your name and firm recognized for quality work and guidance. You make the experienced vultures like me look bad! What’s next, posts by “Studrecruiter” or Superturborecruiter" or maybe “TopGunrecruiter”… I could go on. Anyone want my handle? It’s for sale to the next douchebag that decides to openly use this sight for recruiting! $1.00 [/quote]
What a tool.
Recruiters soliciting on this board are (in my opinion) the equivalent of an attorney following an ambulance to the ER after an auto accident.
Brokers are exploring all options. We are simply here to help them get the best deal.
[quote=Incredible Hulk]Recruiters soliciting on this board are (in my opinion) the equivalent of an attorney following an ambulance to the ER after an auto accident.[/quote]
Show me where I did any soliciting on the boards? I am an active member of the Registered Rep Forums who happens to be a recruiter. Why are you so hostile towards recruiters, anyway?
What was the grid before?$0-199,000 will receive 36% of production.
$200,000-299,000=37%
$300,000-399,000=38%
$400,000-599,000=40%
$600,000-799,000=41%
$800,000-999,000=42%
$1-1.49 million=43%
$1.5-1.99 million=46%
$2-2.99 million=47%
$3-4.99 million=48%
$5 million and more=50%
What was the grid before?[/quote][QUOTE] $0-199,000 will receive 36% of production.
$200,000-299,000=37%
$300,000-399,000=38%
$400,000-599,000=40%
$600,000-799,000=41%
$800,000-999,000=42%
$1-1.49 million=43%
$1.5-1.99 million=46%
$2-2.99 million=47%
$3-4.99 million=48%
$5 million and more=50%
check out this link
http://www.onwallstreet.com/attachment-cache/iag/pdf/ows/payoutgrids/2008/merrill_lynch.pdf
Listen up tool vulture... just because you are having a tough time grinding it out... don't be mad.. My pipeline is full right now and we have represented top end brokers for the top firms for the last 11 years...so while you're sitting in your garage/office cold calling don't get mad at a few highly experienced recruiters who have been around this business for over 25 years. Just because times are tough "grinding it out" doesn't mean you need to spew your problems out on this board. Tell it to people that care.[/quote][quote=SuperRecruiter] [quote=BrokerVulture]I’m a recruiter and regularly monitor this site too. Decent business intelligence at times. What I think is pathetic are the few numbnut recruiters who post here hoping to drag the unsuspecting out. Get on the phone and grind it out you pukes. Earn some trust, build a rep, get your name and firm recognized for quality work and guidance. You make the experienced vultures like me look bad! What’s next, posts by “Studrecruiter” or Superturborecruiter" or maybe “TopGunrecruiter”… I could go on. Anyone want my handle? It’s for sale to the next douchebag that decides to openly use this sight for recruiting! $1.00 [/quote]
What a tool.
This is hilarious....the bottom feeders are beating up on each other....
Listen up tool vulture... just because you are having a tough time grinding it out... don't be mad.. My pipeline is full right now and we have represented top end brokers for the top firms for the last 11 years...so while you're sitting in your garage/office cold calling don't get mad at a few highly experienced recruiters who have been around this business for over 25 years. Just because times are tough "grinding it out" doesn't mean you need to spew your problems out on this board. Tell it to people that care.[/quote][quote=BROKER RECRUITER][quote=SuperRecruiter] [quote=BrokerVulture]I’m a recruiter and regularly monitor this site too. Decent business intelligence at times. What I think is pathetic are the few numbnut recruiters who post here hoping to drag the unsuspecting out. Get on the phone and grind it out you pukes. Earn some trust, build a rep, get your name and firm recognized for quality work and guidance. You make the experienced vultures like me look bad! What’s next, posts by “Studrecruiter” or Superturborecruiter" or maybe “TopGunrecruiter”… I could go on. Anyone want my handle? It’s for sale to the next douchebag that decides to openly use this sight for recruiting! $1.00 [/quote]
What a tool.
This is hilarious....the bottom feeders are beating up on each other....
[/quote]
Bottom feeders? big statement coming from a guy who failed in the real-estate business?? And now because your production is poor you have to start attacking people to feel better. I have read your posts time and time again and we are all sick of you complaining. I will admit, we help a lot of brokers, but you might be a lost cause.<?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Any updates? C’mon Merrill guys take a deep breath and confirm or deny the article that was posted earlier today please....
GraciasListen up tool vulture... just because you are having a tough time grinding it out... don't be mad.. My pipeline is full right now and we have represented top end brokers for the top firms for the last 11 years...so while you're sitting in your garage/office cold calling don't get mad at a few highly experienced recruiters who have been around this business for over 25 years. Just because times are tough "grinding it out" doesn't mean you need to spew your problems out on this board. Tell it to people that care.[/quote][quote=HymanRoth] [quote=BROKER RECRUITER][quote=SuperRecruiter] [quote=BrokerVulture]I’m a recruiter and regularly monitor this site too. Decent business intelligence at times. What I think is pathetic are the few numbnut recruiters who post here hoping to drag the unsuspecting out. Get on the phone and grind it out you pukes. Earn some trust, build a rep, get your name and firm recognized for quality work and guidance. You make the experienced vultures like me look bad! What’s next, posts by “Studrecruiter” or Superturborecruiter" or maybe “TopGunrecruiter”… I could go on. Anyone want my handle? It’s for sale to the next douchebag that decides to openly use this sight for recruiting! $1.00 [/quote]
What a tool.
This is hilarious....the bottom feeders are beating up on each other....
[/quote]
Bottom feeders? big statement coming from a guy who failed in the real-estate business?? And now because your production is poor you have to start attacking people to feel better. I have read your posts time and time again and we are all sick of you complaining. I will admit, we help a lot of brokers, but you might be a lost cause.
[/quote]My production is just fine, although of course all of us would like more.
I've never been in the real estate business. Obviously you're confused. Does that happen often?
Trust me, I don't need your "help".
So far you're the only one who is tired of "my complaining".....
It’s for real but missing some key parts. It is a step up for those $750k/year with 7+ years and gradually gets better for those even higher up on the totem pole. For those like me, who are LOS 2, it is not good. My FOG (Focus on growth) has been cut to almost nothing. My annuitized PC rate is cut dramatically. It is a clear sign the ML only wants those with 5+ years experience and who have growing books. For those like me who are starting out, this is a difficult time. Without significant FOG bonuses, the next few years will be a challenge.
–WM