New Smith Barney Payout Package?

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Sep 19, 2007 3:58 pm
Sep 19, 2007 4:29 pm

Can someone explain what it is? I know some AG fc's went there already, maybe too soon?

Sep 19, 2007 4:32 pm
Sep 19, 2007 6:50 pm

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Sep 19, 2007 10:41 pm

They tweak our pay every year.  It really makes no difference. You want a pay increase? Bring in more assets.  You, not the firm, controls your compensation.

Sep 20, 2007 9:19 am
Lex123:

They tweak our pay every year.  It really makes no difference. You want a pay increase? Bring in more assets.  You, not the firm, controls your compensation.



Sounds like a manager..


While there was quite a bit of tweaking in the past, it was never an across the board pay cut. In the last few years, certain types of business have seen their payout decline dramatically (institutional business from standard grid to 20%, with ticket charges, for example). The decision to make the brokers bear the cost of this recent lawsuit was rather unprecedented.


While I agree with what you're saying generally, the reality is that the recent payout reduction was a significant break in tradition and SB really put itself at the bottom of the payout grids for wirehouses. The weight was being disproportionately placed on younger producers and it wasn't accompanied by any increased payouts anywhere else. As a consequence, SB has the highest attrition rate in the industry, particularly among younger producers, who looked at the MS or ML grid and rightly felt that they were getting screwed.


Krawcheck really had no choice, but to initiate these changes. Nevertheless, I applaud her decision. 

Sep 20, 2007 6:32 pm

I'm sure C shareholders are really pumped that they are paying even below average fcs more. Wasn't she on some million dollar march a few years ago (ie get the firm average at a million tt per fc)? 


Brokers will still leave for the upfront packages, they might stick around for the higher commish.


Sep 21, 2007 9:08 am

What is your problem with C shares? Gordon.

Sep 21, 2007 9:37 am
vbrainy:

What is your problem with C shares? Gordon.



C is Citi's ticker symbol...