MSSB Joint Venture
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We had another thread about this topic but it seems much more timely now as the JV closing approaches and a little more information is out about possible job loss as a result.
Gorman has mentioned publicly that there would not be any FA cuts similar to UBS. I have read others on this forum who have indicated that there may not be any "cuts" just some would not be invited to join the JV, that is, FAs on either side may not automatically be moved over to the new entity. Common sense would dictate that this is ridiculous as SB has lost about 12% of its advisors YTD (and almost 500 last month alone). What would any further cuts, even the bottom decile, do to morale and the health of any new venture? My guess is it wouldn't be good. Yet, no one in managment it seems is to be completely trusted, just look at the track record. Has anyone on the MS side received any indication that they would be retained outside of the retention package (i.e. email or firm memo)? There has not been any firm-wide emails on the SB side. Don't want to leave SB as I genuinely enjoy the office coworkers, the entrepeneurial atmosphere, and especially the clients that have become friends. Just worried that if I leave or am forced out, that they will make it very difficult to take anything and there will be very little to go to. My problem is that I'm in a tough spot, three years in and mid-range, not killing it gross and asset wise, but I have a solid pipeline and I work hard. I'm close but I need a little more time. Any thoughts or anyone hearing anything about this? Your contributions are appreciated in advance.HAAIC, he said “entrepreneurial atmosphere” which is different. Plenty of business owners feel at risk of being “forced out” by competition.
[quote=OS]HAAIC, he said “entrepreneurial atmosphere” which is different. Plenty of business owners feel at risk of being “forced out” by competition. [/quote]
I think that is exactly the point that Hank was making. Entreprenuers may feel pressure from competitors, but they don’t have to worry about their own firm cutting their throat…
Got it. This is true and there are advantages to being truly solo, which is appealing. There are many things that are distasteful about the big B/D that I have noticed and experienced. There are also some disadvantages, though. Yet, don’t think that the asset base is big enough to break away in that sense yet.
Wondering if anybody has any info they would like to share on any FA or staff movement in their branches, voluntary or involuntary. I know some rookies were let go (still salaried) in several offices recently.[quote=IllinoisEagle]
We had another thread about this topic but it seems much more timely now as the JV closing approaches and a little more information is out about possible job loss as a result.
Gorman has mentioned publicly that there would not be any FA cuts similar to UBS. I have read others on this forum who have indicated that there may not be any "cuts" just some would not be invited to join the JV, that is, FAs on either side may not automatically be moved over to the new entity. Common sense would dictate that this is ridiculous as SB has lost about 12% of its advisors YTD (and almost 500 last month alone). What would any further cuts, even the bottom decile, do to morale and the health of any new venture? My guess is it wouldn't be good. Yet, no one in managment it seems is to be completely trusted, just look at the track record. Has anyone on the MS side received any indication that they would be retained outside of the retention package (i.e. email or firm memo)? There has not been any firm-wide emails on the SB side. Don't want to leave SB as I genuinely enjoy the office coworkers, the entrepeneurial atmosphere, and especially the clients that have become friends. Just worried that if I leave or am forced out, that they will make it very difficult to take anything and there will be very little to go to. My problem is that I'm in a tough spot, three years in and mid-range, not killing it gross and asset wise, but I have a solid pipeline and I work hard. I'm close but I need a little more time. Any thoughts or anyone hearing anything about this? Your contributions are appreciated in advance.[/quote]Sorry, about ^^^ hit the wrong button.
Illeagle,
I am at MS and I am receiving retention but have many friends at my
branch who are not getting retention. None of them are not being
"invited" into the JV. You work for SB, you are part of the JV. PERIOD. My two cents - - anybody who says FAs will not be “invited” is giving you a line of BS. If
your T12/LOS is “substandard” you’re going to get tossed into the
penalty box but my understanding, at least on the MS side, is that
there will be no “you are in the bottom 10% so we have thoughtfully
left packing boxes in your office and please be off the premises in the
next 15 minutes” situation.
Not that I would ever believe anything a wirehouse BM would tell me but I would guess they are going to strave reps out!
With a 20% payout.Eagle,
Keep your head up, I am in the SB world, I think that attrition alone will take care of any layoffs. We had 5 underproducers leave to smaller firms, nothing against them they had to do what they had to, but I know that they are struggling to bring over their big clients. It is a bad environment to move, clients seem real reluctant to move if they are comfortable with their accounts setup. Our branch profitability margin has jumped this year, it is the nature of the beast to weed out the weak and the remaining will get stronger. I trust that Mgt is telling the truth, there is too many moving parts to jump in and say this is the minimum levels, plus it will be 18 months before a new platform is developed and shared I cannot see a major merger of branches until then.