Morgan Stanley Comp Plan

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Feb 2, 2009 10:12 pm

Can anyone please tell me the tiers in the 2009 Morgan Stanley FA comp plan for 2009? Thinking of making a change from Merrill cuz my pay got cut so bad as a $320K producer. Thank you!

Feb 21, 2009 10:32 pm

You probably can negotiate a flat 35% payout for the first year or two.   i am meeting a MS manager next week and will let you know.

Feb 21, 2009 10:47 pm

Or you could go independent, and pocket about 80%.

Feb 21, 2009 10:55 pm
Bodysurf:

Or you could go independent, and pocket about 80%.

 
If by "pocket" you mean before local expenses. At least that's what I'm hearing in my research, having talked to more than a dozen Indy practices. More like 60-65%, but perhaps the percentages are at that level because they're all former wirehouse guys and have staffing and office space to match their old surroundings. Then again, 65% beats the hell out of 38%.
 
I'd like to hear from anyone doing net-net 80%, I'd love to learn how they're that efficient.
Feb 22, 2009 1:28 pm
Conrad Dobler:
Bodysurf:

Or you could go independent, and pocket about 80%.

 
If by "pocket" you mean before local expenses. At least that's what I'm hearing in my research, having talked to more than a dozen Indy practices. More like 60-65%, but perhaps the percentages are at that level because they're all former wirehouse guys and have staffing and office space to match their old surroundings. Then again, 65% beats the hell out of 38%.
 
I'd like to hear from anyone doing net-net 80%, I'd love to learn how they're that efficient.



I agree.  From what research I've done, you will net out around 60-65% unless you are working out of your mother's basement w/o any support staff.  I think that most guys quoting 80-90% are just trying to brag and make themselves look smart.  However, even 65% is still a 70% more spendable income than 38%!

Feb 22, 2009 1:39 pm

Another thing to remember: wherever you "start" once you get indy, think about the marginal payout as you grow (remember what that was like??). Assume two FAs grow $100,000 gross over a few years time...at the wire, you maybe bump up your net (pre-tax) by $40,000 or so (a bit more if you include benefits, etc). If you are indy and you don't let your expenses go crazy, you ADD $80,000-$85,000 net on that growth. I think you have to consider FUTURE revenue potential as much as what you clear right away, particularly if you have many years ahead of you.

Feb 22, 2009 1:45 pm

True enough Cowboy.  Here's another.  The wirehouses haircut everything.  Sell a variable annuity, for example, and 4.5% hits your grid.  As an indie, you get the whole 6%.   Ditto on the spreads for bonds, mutual funds, CD's--you name it.  What's more, look at all the wires who don't pay anything--zero--on households under $50,000, or under $75,000, whatever.  How much more of that would accrue to gross, that doesn't now?

Feb 22, 2009 2:08 pm

Why don't you look at a regional like Stifel? Better payout, no haircuts and open artitechture without the headaches of Indy. Not sure why you would jump from frying pan to fire by going to MS from ML? 

Feb 23, 2009 12:12 am

Where do you find info about stiefel?  I've googled them, doesn't seem they have a website.

Feb 23, 2009 2:38 am

I believe it is called Stifel

Feb 23, 2009 7:16 pm

Could a recruiter please PM me.  Looking for info on bank FA platforms.  Thanks

Feb 23, 2009 7:38 pm

As a former MD with ML i know the independent channel inside and out. How can I help?

Feb 23, 2009 7:39 pm

I know MS inside and out. How can I help?

Feb 23, 2009 10:12 pm

what does the recruiting package look like.  and do you expect it to go up or down in the next 3-6 months.

Feb 23, 2009 10:29 pm

deals are falling very fast. 120 -140 up (220 w/ back ends)is a big deal now but I predict we go back to 100 up with total backs to 200.

Feb 23, 2009 10:32 pm

I thought that was true, then SB raised their deals back to 245%. I think the deals will stay heavy for the top quintile guys. There will always be demand for books over $100MM.

Feb 24, 2009 8:13 pm

there was an early post that mentioned 140% upfront and then 3, 35% backends totaling 245%.  just out of curiosity is this still the scenario for the total packages?  and also do you know if there is fexibility in getting more of the 245% upfront or is the 140% upfront set in stone.  thanks for any inputs.

Feb 24, 2009 8:19 pm

I am with BAI and am presenting my numbers shortly. I will let you know. However I am reluctant to really do anything. Alot of brokers are leaving and good brokers will get a hell of alot of new assets. However if they completely eliminate our premiers I probably will leave. If I am going to work for a wirehouse, I might as well get a big check to do it.

Feb 24, 2009 8:54 pm

We met with UBS last week...deal is running 145 upfront(very neg.) with 100% on the back end...no stock all cash...The manager was even neg. on the asset levels we would be committed to bringing over. I think we could get 160 maybe 170 upfront. We're a 2 man, 2.3mTT team with 390m under management.

Feb 24, 2009 8:57 pm

I would take that deal all day long. I am hearing that huge teams from ML are all going to UBS. Any particular reason?