Retention
76 RepliesJump to last post
[quote=Ferris Bueller][quote=Vin Diesel]i agree with fritz…upfront cash is usually spent on luxury items or lost in the market. then rep is locked in to a longterm contract with the firm. on top of that the rep has to pay tax each month on the $ they spent.
on a few occasions some reps make good decisions with upfront deals but they are the exception. i took a check in last market downturn and it carried me for a while. i ended up leaving early and settling for pennies on the dollar. the lesson learned was keep $ aside to pay for taxes[/quote] What the rep does with the money shouldn't make it a good or bad deal. If they foolishly spent it or lost it via investments, then they are to blame. I kept mine in short term cd's, just in case I decide to leave.[/quote] its not thats its a bad deal, but its not something for nothing - as some advisors believe. question is; is it worth it...If what I am being told by my recruiter & firm that is trying to hire me, there is a dead-period that happens the last two weeks of the year where Advisors can’t move licenses. So, I am guessing that WS retention package will come out some time at or after the 15th of Dec.
Not sure how it works but, I wonder if some of the deals that are on the table for FAs will be available in January.
I could be off but, wanted to bring it to the attention of the board.
Some people in the firm think the deal will be modeled after the ML/BAC deal. One thing that does support that view is the extended silence. The longer this goes without any commentary from management the more you have to believe they are going to screw guys doing less than 1MM in production
unlike Merrill brokers I dont we have that many 1 million producers at Age/WB. My best guess is about 5 percent of the firm doing that level of production.
10% of ISG does 1mm+, I have no idea what PCG does. I am hearing anybody above 500K shoul b e taken care of, meaning at least 40% retention. No fact behind this, just what I hear, and the same littel birdies are saying week after turkey day.
Go to FA rankings... Guy in my office is on track to do around 1.2 he is currently ranked #868 in the firm Im guessing the number is probably 10-12%unlike Merrill brokers I dont we have that many 1 million producers at Age/WB. My best guess is about 5 percent of the firm doing that level of production.
Again, I have a tough time seeing how they can float out something that is drastically less than what they did 18 mo’s ago for the WS/AGE you run a very real risk of guys walking if it is too far outside that deal. The deals are MUCH bigger now than they were 18 months ago.
Buki…our FA ranking only apply to ISG. A 900K guys ranked 100th, out of the 1400 ISG Reps. For what it is worth, I do about 600, and I am ranked 300th. I am assuming that the FIRM ranking you guys (PCG) use is based on about 12,000 reps, or does that only apply to AGE??? None-the-less, the ISG never got a retention when we bought AGE, but we absolutley expect something from Wells Fargo. I would think that 40% for the 500K guys, and 50% for the 750K guys would get it done, with something additional on the back end.
[quote=skbroker]unlike Merrill brokers I dont we have that many 1 million producers at Age/WB. My best guess is about 5 percent of the firm doing that level of production. [/quote]
Believe me there are more then that. One large office had 12 out of 50 including a few multi million. I think a few West coast offices had similar %.
that maybe the case a year ago but you got to assume that there less million dollar producers in this enviroment.
OMG WTF
Let me break this down.
You do 500k in production @ Merrill
You leave.
You get a 500k check from Smith Barney. That check is a loan at 3 %.
You are required to pay back the loan.
Luckily the firm also gives you a bonus each month, with a 3% inflation kicker that PERFECTLY coincides with what your monthly loan balance is.
The bonus pays off the loan, you keep the funds upfront.
Any questions?
You still have to pay TAXOMG WTF
Let me break this down.
You do 500k in production @ Merrill
You leave.
You get a 500k check from Smith Barney. That check is a loan at 3 %.
You are required to pay back the loan.
Luckily the firm also gives you a bonus each month, with a 3% inflation kicker that PERFECTLY coincides with what your monthly loan balance is.
The bonus pays off the loan, you keep the funds upfront.
Any questions?
BukiRob,
I have a little old lady client who is just like you. She hates to pay taxes. I tell her that we have a solution for that. Don't make any money! She has taken this so far as to not sell stocks with huge gains because of the taxes. In the last three months she has achieved her goal. No more naughty taxes on those stocks...because she has no more gains. Why are you in this business? If you stay at home and eat mac and cheese all day you will have a much lower tax liability. And that's really the most important part.[quote=skillopie] BukiRob,
I have a little old lady client who is just like you. She hates to pay taxes. I tell her that we have a solution for that. Don’t make any money!
She has taken this so far as to not sell stocks with huge gains because of the taxes. In the last three months she has achieved her goal. No more naughty taxes on those stocks…because she has no more gains.
Why are you in this business? If you stay at home and eat mac and cheese all day you will have a much lower tax liability. And that’s really the most important part.[/quote]
Wow, you are completely missing the point. How many people do you know who have moved? How many have you talked to about the monthly tax hurdle? There are SEVERAL in my office that have moved from other firms to our office downtown. In many cases the tax hurdle is several thousand a month that comes out of your NET pay. That means that most of that upfront money ends up being what you use to subsidize your living expenses. There is a reason they give you so much money up front at its not cause your such a nice guy…
I did not listen to dannys call today, but it seems that danny and Carroll will be heading to Cali on the Monday following Turkey day to deliver the numbers on retention. The thought is that we will see something in the middle on Dec. I am sure that the top producer in the firm leaving will rattle a few cages, but only time will tell.
[quote=duster10] I heard Kurt Sylvia down in West Palm left today…BIG producer. Left for UBS.
Guy doesn't show up on the October production report. No Kurt's in West Palm either. Check your facts next time.[/quote]
http://www.kurtsylvia.wbsec.com/section3.cfm
<SPAN =Pageer id=ctl00_lblPageer>KURT F. SYLVIA
As of 11/21/2008
Currently employed by and registered with the following FINRA Firms: WACHOVIA SECURITIES, LLC
I looked him up too, he showed up in Lotus Notes. I think he did check his facts.