I don't understand... so they cut the payout to 20% on the first $5,000 gross monthly production, which means to recoup you need to increase production. What's the big deal? Seems like this only effects someone like me who will be just starting to build a client base.
I'll probably get my head chewed off for this post, but I welcome the feedback.
Actually it won’t affect you until year 6. By then this thing will probably change 6 more times.
[quote=successmagnet]Why year six?[/quote]
Because it doesn't effect FAs in production years 1-5.
I don’t have a dog in this fight, but the thing that I can never get my head
around is that what they’re doing is not the deal that was made. If we were
talking about a machine shop, there’d be a union in there by the next
…and thus, 69 reps leave in a single day. I wonder if management has figured that one out yet…
[quote=Indyone]…and thus, 69 reps leave in a single day. I wonder if management has figured that one out yet…[/quote] Yes I’m sure that some have, but SB and especially Citi is now the GM(or Chyrsler?) of financial services. They are just so damned big that they can’t react quickly enough. I’m not sure who the Toyota equivalent would be in this equation, i.e. the fin svc firm that is selling their products like hotcakes. Maybe Goldman, but they are really mostly just trading right now, not selling product. Anyway, Citi is sort of where MS was w/ Purcell, beligerent upper mgmt driving away talent, leaving future generations of mgmt to pay double to get the same/equivalent people back that they used to treat like s**t. This recent boner by SB mgmt has created a tipping point w/ bkrs, it’s ok to leave now;“Cuz it ain’t gonna get any better, anytime soon.”
Look where most of them went. To another wirehouse. Does the word Jabronies mean anything?
They're going to be favorite sons of the new branch for about three months (I wonder how many got "sales Manager" jobs as part of their deals?) ok, we'll give them 10 months. Then the manager of the branch that they went to will be a hero at the end of the year and the firm will give him a bigger branch to find out exactly where he Peter Principals out. Meanwhile the new BOM takes over the office and guess what? He doen't love these guys, in fact, they represent a future hole in his P&L if they hit all those performance targets!
If he can just keep them just below the target (which they'll be lucky to hist anyway, then he'll get the max production at the lowest cost.
They'll be miserable, they bought the wife the big BMW and some bling, and don't forget those darned taxes, so the up front is mostly gone... Well it won't matter because they're gonna get more when they hit that target!!! Well belly up to the Lemonade cooler boys cause you signed an 8 year deal! That's 8 years of your new managers telling you why payouts are being cut at your new firm, and that any promises you got from the first manager are null and void because he wasn't authorized to make them anyway.
And then there was a recession, and the bear market that preceeded it!
Try to stay away from sharp objects!