ML Team Compensation?
I am curious about the team compensation structure at firms. There are no teams at BAC but ML is big on teams. My questions are fairly simple. Is the compensation of the FA's added together and then divided by 2 to come up with the % payout? or Is the total compensation of the FA's added together and then the team is paid out at the higher grid rate?
EX: FA 1 produces 800,000 and FA 2 produces 400,000. is the team paid out for 1.2MM or does the team get paid at 1.2MM divided by 2 or at the $600,000 level?
Are the big firms the same or does it vary by firm? THX
Neither of your examples is correct. Using the hypothetical 1.2 Myn team (FA 1 @ $800,000 and FA 2 @ $400,000). The team is simply paid out as two individual producers- FA 1 gets paid at the $800,000 level; FA 2 gets paid at the $400,000 level. There is no recognition of the "team" for compensation purposes.
Cool. Thanks - That makes sense but my manager said it was paid out at the higher level. Thats probably why his days are numbered as a manager as the herd comes thundering in.
This is a big issue w/ me. Do any firms other than MS & SB have a team payout?
UBS. My understanding is they pay at the grid of the largest producer.
Bondo is correct. UBS pays all team members on the highest grid. So the 400m producer would be paid at 800m grid for their respective LOS.