SB "Partners Awards"
Read in WSJ the other day $500 Million of partners awards were given out (last month) to" brokers whose personal finances were getting squeezed." What is that?, everytime I have suggested on here that brokers need retention to live off I have been torched.
The firm gave brokers the option of taking their next five years of Length of Service Bonuses up-front. Believe it's structured as a forgivable loan, with 20% being forgiven each year over the 5 year period. Should production increase over the next five years to the point where a broker qualifies for a greater bonus than the amount that was taken up-front then I believe the additional amount is paid the next year after the loan has been fully forgiven.
I believe any amount taken as an SB Partners award will be deducted from whatever retention package results from the MS/SB JV (no double-dipping).
Partners award has not been paid out yet. You can get 5 years of LOS fronted as a loan. Each year your earned LOS is used to repay the amount borrowed. Note will be for 6 years. If the firm decides to change comp plan or you do not qualify for the bonus due to a drop in production then you need to pay back out of pocket.
SBDucks - you are part correct. The loan is paid off out of future LOS bonuses earned over 6 years, unless the LOS bonuses earned over the years are enough to pay off the partners award sooner.
And the Partners award is not going to be deducted from retention bonuses, they are separate and apart.
What if you're paid the partners' award bonus, then are squeezed out by MS?
I'll bet they put this whole thing on hold, until MS figures out what they want to do. There was an email sent out to SB producers yesterday morning that said they would be getting details on a retention package within 7 to 10 days.
Indentured Serventry? You can't leave now, you took the bonus. Interesting way to try and keep a sales force intact.
If a broker needs a bonus/loan to live off, then they're not much of a personal money manager. Best personal financial advice I ever got, "Live 5 years behind your income".
get a grip Mr Judegemental-that is like saying someone who loses their job due to layoff and can't pay their bills is a loser and can not manage their finances