New ML comp plan rumors

or Register to post new content in the forum

101 RepliesJump to last post

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Nov 18, 2008 7:26 am

Here are some details on the new ml comp plan. All details are just rumors at this point.



No pay on households under 100k even if the client is in a fee based platform. (I know this is fact)



Flat 35% grid across all product types.



Starting at LOS 5, a 1% bump on payout for every additional 5 LOS.



Grid flips at 1.8 million to 60% payout.



I love how BAC/ML lowered the grid for all producers under 1.8 million but would not tell anyone until the new contract was signed.

Nov 18, 2008 7:35 am

Any rumors about how they are treating production for a team?  I'm sure there is no way in hell they would do as UBS and pay based on the production of the highest generating team member.

 
I don't think it is any surprise the grid is being cut.  It is important to maintain the proper Wal-Mart of banking atmosphere.
Nov 18, 2008 11:59 am

RUMOR RUMOR RUMOR......the only thing we can do is wait and see exactly what it will be.  If you are correct leftml I will do thirty push ups!   Plus a 35% grid is great for BAI folk’s god knows our grid is not in line with industry standard.  Also, I just don't see how BofA would cut comp the first year and upset so many people.  Then again they have to pay for those retention checks some how! 

Nov 18, 2008 12:35 pm
BAI?:

RUMOR RUMOR RUMOR......the only thing we can do is wait and see exactly what it will be.  If you are correct leftml I will do thirty push ups!   Plus a 35% grid is great for BAI folk’s god knows our grid is not in line with industry standard.  Also, I just don't see how BofA would cut comp the first year and upset so many people.  Then again they have to pay for those retention checks some how! 

 
LOL and the ROYAL screw job on the retention didnt upset people????  Obviously, until it is in writing then its all speculation but if they were as regressive with the retention what makes you think they will be any less regressive with compensation?
Nov 18, 2008 7:13 pm

OK- this is just a rumour and I doubt it's correct, but let me just have some fun with it:

 
Suppose ML Management is thinking, "OK, we just basically told 60% of the sales force to go screw themselves (no retention package), so we'll cut their pay, and this will insure that most of them walk.  Then we will distribute their accounts to the 1/3 that stay, and their production will increase substantially- after all, they won't take all of their accounts.  Then we reduce the payout on the remaining sales force, but they are making more money b/c of more production.  ML Management has just managed to do what they've always wanted to do: cut the variable compensation expense making the company more profitable.  Then, ML management can take a huge management bonuses for being so smart and continue to rape and pillage corporate America.  They know they easy game of raping and pillaging is over, but if they can reduce FA Compensation, they can continue their game.
 
Just a warm thought about our "leadership"
Nov 18, 2008 9:20 pm

Are those cash rates or do they take the usual 10% FACAAP out of that?

Nov 18, 2008 9:43 pm

I heard from multiple sources that existing BAI will still keep the "trailer" grid.  It will go away when the ML and BAI grids are aligned at the end of next year.  And I agree with BAI?, if anyone asked if I wanted to keep the old BAI grid or move to an unknown ML grid, I would take the latter.

Nov 18, 2008 10:15 pm

Correct me if I am wrong, BAI FA's don't get paid on money markets, 12B-1, or CD's, is that right? They get a haircut on VA's down to the tune of 4% and 35% payout on the top end, too? I think the only thing they got a higher payout on was proprietary fee based managed account. I was there years ago but it was such a bad experience that I had to take drugs to erase those memories. Well, and I have a little drinking problem, too. But that started when I was with BAI, I just haven't quit yet.

Nov 19, 2008 6:58 pm
Phan2om:

OK- this is just a rumour and I doubt it's correct, but let me just have some fun with it:



Suppose ML Management is thinking, "OK, we just basically told 60% of the sales force to go screw themselves (no retention package), so we'll cut their pay, and this will insure that most of them walk. Then we will distribute their accounts to the 1/3 that stay, and their production will increase substantially- after all, they won't take all of their accounts. Then we reduce the payout on the remaining sales force, but they are making more money b/c of more production. ML Management has just managed to do what they've always wanted to do: cut the variable compensation expense making the company more profitable. Then, ML management can take a huge management bonuses for being so smart and continue to rape and pillage corporate America. They know they easy game of raping and pillaging is over, but if they can reduce FA Compensation, they can continue their game.



Just a warm thought about our "leadership"





I think you maybe onto something here.

Nov 19, 2008 10:33 pm
leftml:

Here are some details on the new ml comp plan. All details are just rumors at this point.

No pay on households under 100k even if the client is in a fee based platform. (I know this is fact)

Flat 35% grid across all product types.

Starting at LOS 5, a 1% bump on payout for every additional 5 LOS.

Grid flips at 1.8 million to 60% payout.

I love how BAC/ML lowered the grid for all producers under 1.8 million but would not tell anyone until the new contract was signed.

 
Something I was thinking about today: 



 
If a MER rep was doing 500k last year, at 40% grid, he'd be netting 200k.
 
So, with the takeover, let's say BAC drops the payout to 35% and doesn't pay on households of less than 100k. 
 
When I was at MER, you could get away with householding small accounts to non-related accounts.  However, I suspect BAC will crack down on this.  Let's assume the broker does 25k/year from these lower households.
 
Now, due to market performance, they are receiving 30% less in revenue, at a 35% grid and not getting paid the 25k in low households.  That puts this same producer at 116k net.
 
That's not even including losing assets.  That's presumably a very big paycut.
 
 
Nov 19, 2008 11:15 pm

Mucho, BAI Reps are not allowed to broker CD's (you have to move the money to your "partner" so he can meet his goals). That's taking dirt out of boss' hole. THey DO get 12b-1's, just at 25%. THey also get a little love on MMKTs somewhere around 5-10 Bps. Their bigger issues are no research since ole' Ken had too much of capital markets and the BAI guys can't recommend a stock without a "Buy". That left around 200 stocks no one had ever heard of. I had two separate managers suggest I mark trades unsolicited to put up more business in non-fee based months.   I was amazed. I responded that I wasn't willing to give up my license to help him hit some goal. The regulators ought to figure out a way to check that one.



Much, one more thing, always remember, you can't lose with booze.

Nov 21, 2008 9:32 pm

I heard today that the 3rd, 4th, and 5th quintile FAs are going to be, in the words of this manager I spoke with, "very unhappy." 



So when are they going to release this? Hmmm, maybe we will get an email on Wednesday AM that there will be a pre-recorded Direct Broadcast with no replays airing at 1 PM.  And if you have any questions, go see your manager!
 
The funny thing is that a 3rd quintile guy at Merrill is still a pretty good producer at most firms.  I don't know why everybody is so worried about BofA, looks like Merrill's own management is doing a pretty good job of banging the sales force.
Nov 21, 2008 10:06 pm
Phan2om:

I don't know why everybody is so worried about BofA, looks like Merrill's own management is doing a pretty good job of banging the sales force.

 
I think you should check out a post on the first page of this thread.  The author has a very interesting theory and one that sure could have legs, especially based on the message sent by the retention package.  You might even know the author of that post.
Nov 21, 2008 10:22 pm

This thread started off with RUMORS.

 
I know several complex managers at both firms, and a couple regional managers at both firms.  I have worked for both firms.  I am employed by one of the firms.
 
NOBODY AT ANY LEVEL BELOW THE C-LEVEL KNOWS ANYTHING AT THIS POINT. 
 
I, too, am anxious about potential changes and how I will be personally impacted.
 
Note to all readers:  DISREGARD all the crap you've read in this thread.  It's all speculation, and nothing more. 
 
It's amazing the b.s. some of the rumor spreaders can spread. 
 
I like this forum, but this is a thread where I think that if most if the posters allocated more of their time towards their their crappy bitness then they would if they actually were a good producer.
 
After 5 years of occasionally checking out the forum, and finally posting my first one a few weeks ago, I'm now thinking I'm wasting my time.  It appears I'm hanging out with a bunch of low life 200k producers trying to figure out whether a 35% payout vs at "fill in the blank" payout is going to make a substantial difference in their pathetic life.   (FYI, 90% of a tiny pie is sh*&ty little paycheck) 
 
HEY LOSERS.  LOGOFF THIS SITE AND GET TO WORK.   Allow regular people to exchange ideas here. 
Nov 21, 2008 10:26 pm

Reagan you should be a motivational speaker, good job. As an aside, in general how do quintiles breakdown for LOS >5 in general. What are the levels? Just curious, always heard about the quintiles don't know the levels. Thanks.

Nov 22, 2008 3:57 am

Will new plan be out this week?
I just got notice ALL Christmas parties are cancelled

Nov 22, 2008 12:34 pm
Reagan wrote:
 
"I like this forum, but this is a thread where I think that if most if the posters allocated more of their time towards their their crappy bitness then they would if they actually were a good producer"
 
Ummm...I am north of 1 Myn and do it without a "team" (and I was at the meeting where Ken Lewis appeared and was applauded), and If you "know" people at both firms and they know nothing, then you are talking to the wrong people.  This thread is rumour, but I did speak with a manager on Friday who told me the lower quintile FAs were going to be "extremely unhappy." Maybe this director is smoking crack- who knows?
 
FYI, there are guys in my office that are good guys and produce much less than I- I don't judge them on their production.  Anyone who defines somebody by their production is a true loser.
Nov 22, 2008 12:43 pm

Bondo- Thanks for the reference to page 1 ! A very intelligent post! 

Nov 22, 2008 1:14 pm

I guess I should have qualified where I received the rumor. It's from an old co worker at the ML branch where I worked. He received the info from our complex manager after he signed his contract. New comp plan should be out this week.



I do know there will be 0 payout on all accounts under 100k even if fee based. This from a member of the ACTM.

Nov 22, 2008 1:19 pm
leftml:

I guess I should have qualified where I received the rumor. It's from an old co worker at the ML branch where I worked. He received the info from our complex manager after he signed his contract. New comp plan should be out this week.

I do know there will be 0 payout on all accounts under 100k even if fee based. This from a member of the ACTM.

 
thats nice..so an account that was 200K in Jan is now 95K (possibly) and now do not get paid.  What kind of idiot in management would penalize a FA and not pay him on that account.  IF thats true and that trend spreads to other shops its says alot about where this biz is heading.