SB Retention
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Suicide. Yes. Who knows what would happen to the stock price if they didn’t offer a big retention package? Might even drop by 40 cents a share or something. Of course, in Citi’s case, that’s like a 10% move.
I don’t begrudge anyone at Smith Barney the money to which they feel entitled, because they’re moving out from Citigroup and into Morgan Stanley. It’s just amusing to watch how the retention bonuses are figured. An FA who did $850k in 2007 and $502k in 2008 is going to get a nice package to stay. An FA who did $225k in 2007 and $495k in 2008 will be told he’s a POS, and get nothing.
I hope you get your money, all of you. And I hope it’s on the headlines of every paper in America. Should help me to wrestle accounts from the SB’s of the world. Wall Street is the only institution on planet earth which gives its sales force giant bonuses to stick around, just because another firm has swallowed them up, all while their clients’ accounts have been annihilated.
Good luck!
Why should wish ill will on our fellow FA’s or begrudge them for being awarded a retention check?
We shouldn’t. But why should the $450k producers get nothing?
In my old SB branch, there are 9 guys who are between $350-$499k. If they’re not worth keeping around, let them go. If they are, pay them to stay, just like the others.
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You seriously seem like someone that has an axe to grind with Citigroup. I am sure all BD's have concocted formulas on who is an asset and who is a liability based on production. And I am sure they some kind of formula that dictates what they are willing to pay everyone to stay or transition over. Your example makes no sense to me, an FA that does 1.3 million over 2 years versus someone that does 720k over the same period is worth more. I am sure they try to not get in a situation where they have to dissect everyones production to determine value. In other words someone with reoccuring fee based revenue is worth more than someone that wrote a big annuity ticket in one year. They have to set some value, in the MSSBJV I hear it's 400k, could be less could be more. Loyalty isn't worth anything, someone thats just building their business may not be worth as much. I would guess someone with experience and consistancy is worth more. It's probably just my observation, but something about all of this annoys you. The thing that is different is most all of the producers at MS and SB have been destroyed net worth wise. There isn't any reason to stay, nothing to look forward to, no "golden handcuffs". So I am guessing a retention award is even more critical than it has ever been. Lot's of FA's will choose to move and get 150 - 250 % versus worrying about staying for 25-100 %. Don't let it bother you, it will always be there. And you thinking that MSSB offering a retention award will give you additional fodder to go after accounts from the 2 firms is laughable. I am not slamming you, your posts just make me laugh.I don’t think that a $450k producer should get nothing either. If they do in this scenario, they’d be smart to leave and take a check from someone else. With the new firm having 22,000 or whatever advisors, they will likely be forced to have a cutoff point that makes sense to make the number of advisors smaller.
The whole argument of whoever said something like “making your clients go through hell so you can get a check” or inconvenience or whatever, well, yeah, if they are loyal clients and you are managing their money, it is in the client’s best interest for you to be happy and successful so you can focus on making them money and not worry about your own well being.
While I’m not yet over the million mark (especially being fee-based in this crappy market) if the retention offer isn’t good enough, I’ll likely depart myself as I need to do what’s best for my family and take advantage of the situation. Change is imminent. Why not make the change work best for everyone-myself included? And no, it’s not tax payers paying my check either. The amount of revenue generated by my commissions more than covers it–that’s why it’s a percentage of past production! If they give me 100% and require me to stay for 8 years in order to have the whole amount and I’m at a 42% payout, then that means they are giving me 12.5% of my 2008 production for every year that I stay for 8 years. Still works out much better for them and they still make a huge profit, and I stay happy and committed for a long time.
What annoys me is the proposition that you have a whole bunch of guys itching to leave, when they clearly aren’t. If they haven’t left the train wreck that was Citigroup, why should they leave now that Morgan Stanley will be running the show? And from the Morgan side, if they were willing to work for 40% payouts at Morgan Stanley without taking a deal elsewhere, why should we suddenly believe that a merger with Smith Barney is somehow the last straw?
I do have an axe, of sorts, to grind with Citigroup. I’ve only been in the business two years, and wanted to build a full-discretion, fee-based business. And in September I had about fifty accounts in the GPM program–not a lot, just about $9 million or so, and went completely to cash and short ETF’s. I was immediately in violation, and would come to work every day with a giant pile of violations on my desk. Come the end December, I was told that I would either have to have my clients fully invested in the markets by the end of the day on 31 December, or that no doing so would be construed as my resignation from the firm.
So I took door #2. I’m sorry that so many brokers have seen their net worths blow up, along with whatever golden handcuffs they had. But we’re not in this business for us. For that matter, we’re not in the business for our firms. And if the only reason you’re considering sticking around the one you’re at is because they’re going to cut you a check, maybe you’re at the wrong one. My posts might make you laugh; I’ll admit I don’t make nearly as much money as you. But there’s a good chance my clients didn’t lose nearly as much as yours, either. Which means more.
As I PM manager I feel your pain. But GPM is just that it’s guided. ON the PM platform you have a little more autonomy but not much.
You must of been with Citi and not SB. I spent 6 years at UBS/PaineWebber and 6 years at a regional firm and I can tell you SB has been great, other than losing a bum ton of value in stock. My feeling is a brokers relationship with the BD is just that like a relationship with a vendor, nothing else. If I can make more money somewhere else and it's equal or better for my clients than that's where I will consider working. I don't need a retention award to stay where I am at, but I will do something in the next 3 or so years to recoup what I have unwillingly forfeited. In the meantime if I qualify for a retention award thats great, it will help me weather the storm.And you’re right, I don’t ever try to time the markets.
I have been defensively positioned but it could have always been better. And I always try my best to do the right thing for my clients. And it's a little over responsible of you to insinuate that you have done anything "better" than anyone else here in these forums. So chill junior until you know all of the stories.Fair enough. I hope you get what you want.
And I was with SB, by the way. Loved Smith Barney, and despised Citigroup, who was instrumental in bringing this financial calamity upon us.
[quote=Squizz]
My feeling is a brokers relationship with the BD is just that like a relationship with a vendor, nothing else. If I can make more money somewhere else and it's equal or better for my clients than that's where I will consider working. [/quote]This does not make sense, if your BD is just a vendor, why on Earth are you letting the BD dictate the parameters of how you manage your clients accounts.
Citi management has destroyed a once proud brand, but regardless, the benefits of working at a wire are WHAT?...the technology is comparable (and in SB case inferior) to some of the independent BD. The products are the same, THE SAME, change the names and most of the bigger recognized BD have a similar offering, the company name is trash (thanks to the above mentioned management, this is true at ALL the major players), and your payout is subject to the whims of God only knows how many middle managers that could not describe their job responsibilities if their life depended on it!! meanwhile they get paid a couple of hundred grand to stick around!!!
I'm not slamming anyone on this board, and I respect your individual views, but really, if you're still at a SB, you should really, REALLY explore all your options before acting like a lemming and letting corporate management bend you over all over again!!!!
One simple question, exactly what does SB bring to the table that is unique enough to warrant 40-80% of your production?
What the heck are you talking about? SB doesn’t dictate anything to me.
Geez there are a lot of people that know everything about everybody here. I am glad you are all happy about being independent, but don't assume that everyone's life if worse than yours. What I meant is because all BD's are like vendors it doesn't matter where I am working, as long as I have the services and products available that my clients need ,I am fine. Go to another thread and recruit for your independent platform. And by the way, to all you guys trying to recruit brokers to your Independent platform. I started as an Independent at Anchor National Financial services which later became Sun America. So don't come and profess that you know whats better for me. I have been there. And I am perfectly happy where I am at, and have absolutely zero interest in what you think is best for me and my clients.[quote=SB No more] [quote=Squizz]
My feeling is a brokers relationship with the BD is just that like a relationship with a vendor, nothing else. If I can make more money somewhere else and it's equal or better for my clients than that's where I will consider working. [/quote]This does not make sense, if your BD is just a vendor, why on Earth are you letting the BD dictate the parameters of how you manage your clients accounts.
Citi management has destroyed a once proud brand, but regardless, the benefits of working at a wire are WHAT?...the technology is comparable (and in SB case inferior) to some of the independent BD. The products are the same, THE SAME, change the names and most of the bigger recognized BD have a similar offering, the company name is trash (thanks to the above mentioned management, this is true at ALL the major players), and your payout is subject to the whims of God only knows how many middle managers that could not describe their job responsibilities if their life depended on it!! meanwhile they get paid a couple of hundred grand to stick around!!!
I'm not slamming anyone on this board, and I respect your individual views, but really, if you're still at a SB, you should really, REALLY explore all your options before acting like a lemming and letting corporate management bend you over all over again!!!!
One simple question, exactly what does SB bring to the table that is unique enough to warrant 40-80% of your production?
[/quote] At Schwab Institution clearing as an RIA yes.... but not all independent BD have the same depth of product choices. Many of them fall VERY short working with SMA's
I also do a substantial amount of business with foundations. And you’re not doing that with Linsco Private ledger. You all need to quit assuming that you know things that maybe you don’t.
Squizz have you heard anything regarding retention for S/B brokers in the Citibank branches.
No sorry, I am not privvy to any of that information.Squizz have you heard anything regarding retention for S/B brokers in the Citibank branches.
[quote=TOP BROKER]Squizz have you heard anything regarding retention for S/B brokers in the Citibank branches.[/quote]
I’m not sure why SB brokers in Citi branches would get retention. I havent heard anything about that, but more important, the SB Brokers in Citi branches are not part of the MS joint venture. They are going to stay with CITI, and ultimately be under a completely different broker dealer.
[quote=Squizz]
And you thinking that MSSB offering a retention award will give you additional fodder to go after accounts from the 2 firms is laughable. I am not slamming you, your posts just make me laugh.
[/quote]
I’m not slamming YOU, but if you don’t understand how it’s going to make it easier for us to get ink on paper when it comes to ACATS forms, you are REALLY out of touch with how your clients are feeling right now.
IF MSSB retention makes front page news in the WSJ or the business section, it will just make it far easier for clients to understand the benefits of working with an experienced professional who is in private practice, not a salesman for a big firm who can’t seem to even manage their own assets prudently.
LMAO[quote=Squizz]
And you thinking that MSSB offering a retention award will give you additional fodder to go after accounts from the 2 firms is laughable. I am not slamming you, your posts just make me laugh.
[/quote]
I’m not slamming YOU, but if you don’t understand how it’s going to make it easier for us to get ink on paper when it comes to ACATS forms, you are REALLY out of touch with how your clients are feeling right now.
IF MSSB retention makes front page news in the WSJ or the business section, it will just make it far easier for clients to understand the benefits of working with an experienced professional who is in private practice, not a salesman for a big firm who can’t seem to even manage their own assets prudently.
LMAO[/quote][quote=HymanRoth] [quote=Squizz]
And you thinking that MSSB offering a retention award will give you additional fodder to go after accounts from the 2 firms is laughable. I am not slamming you, your posts just make me laugh.
[/quote]
I’m not slamming YOU, but if you don’t understand how it’s going to make it easier for us to get ink on paper when it comes to ACATS forms, you are REALLY out of touch with how your clients are feeling right now.
IF MSSB retention makes front page news in the WSJ or the business section, it will just make it far easier for clients to understand the benefits of working with an experienced professional who is in private practice, not a salesman for a big firm who can’t seem to even manage their own assets prudently.
I predict that over the next year I'm going to be laughing all the way to the bank....