A few days ago I was visiting with a corner office guy. He was talking about hiring a JR broker or bringing in a minor partner or doing something to "get to the next level". He was babbling on and then said something about how "it's all going to change the first of the year" because of the "new comp plan." He said he was referrring to a change in how we are paid due to some of these broker overtime lawsuits or whatever. Does anybody know what he was talking about?
The gist of the new rules are that the firms are going to treat us more like employees and less like independent contractors. (I think this is a bad trend.) For example, we will no longer be allowed to comp our S.A. In addition, we will no longer be responsible for errors.
If I understood it right from my BM a few months ago firms had until October to figure out a plan of how they were going to implement these new policies. Have not heard what they are doing, but I am certain the move to squash out the smaller producers by many of the larger firms has something to do with it. If they have to make us employees and cover our losses they are not going to want to keep the guy that pulling in less that $250k (opinion).
In the conversation, he mentioned something about not being able to comp the SA. I didn't know what he was referring to.
So, there might be a trend where the bigger producers, instead of having a SA, hire a JR broker to do SA work?
...oh, and expect payout cuts to pay for the firm's cost in compensating SA's for their lost income and also in recovering the cost for our errors. Firms will say they don't want to cut our pay, but are mandated by the recent lawsuits in California. (Actaully, what they will SAY is that it's revenue neutral...that's manangement-speak for we're cutting your pay.)
Isn't socialism grand?
I think Wachovia's already in the process of getting "low" producers to hit the door. Not sure what they consider "unacceptable" levels of production but "low" producers did get letters a few weeks ago stating they were on a 90 day probation period and specifying exactly what they needed to start doing on an individual basis. Some comments I heard were:
1. Show up at the office every day
2. You're wasting too much time on the computer
3. Weekly meetings with BOM to discuss "new prospects"