Upfront bonus

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Jun 16, 2007 10:20 pm

i have been with age for 7 years now with trailing of 400k and looking into one of the wirehouses to grow my bus.  Does anyone know what kind offers I can expect from ML, Morgan, UBS and smith barney.  I have been hearing between 100% to 150% of my trailing 12.  I have also heard that raymond james would offer 75% of trailing 12.  I have seen the payout grid for all the firm and they are pretty similar and the culture does not matter because i know i'll be million dollar producer where ever I decide to go.  please share.  Thank you! 

Jun 16, 2007 10:36 pm

You can expect ML to offer you 100% of trailing 12 upfront.  Along with the backend deal going for around the same amount based on assets brought over as well as continued production.  This will come in the form of a bonus on the best 12 of 18 months at the 18 month point followed by bonuses at the 30 and 42 month point.

Jun 17, 2007 9:50 pm

Make your selection based on your business model, personal/professional
likes and dislikes (a golf shirt wearing casual rep?  Don't go to
ML), product and platform suite, support, on-going pay-ou, etc... first
then transition package second.



I have seen many people make very very wrong decisions based on
transition packages and lived terrible  lives for years as a
result.



EX:  I saw a guy I used to work with doing about a Million at a
bank with "deep relationships" and high end referral sources and
relationships that were "beyond the scope of what the bank could
compete with".  3 Years later he is setting on 28 mil in AUM and
is living a life of humility and under 250K a year in production at
SB.  He has diapoointed himslef as well as his boss and he has a
profound dislike for the wirehouse environment.  He admits he did
not do proper research, but rather was enticed by the recuiter and the
transition package.   He is already trying to negitiate
another deal to unwind his error and basically start over. 

Jun 19, 2007 1:35 pm
rightway:

Make your selection based on your business model, personal/professional likes and dislikes (a golf shirt wearing casual rep?  Don't go to ML), product and platform suite, support, on-going pay-ou, etc... first then transition package second.

I have seen many people make very very wrong decisions based on transition packages and lived terrible  lives for years as a result.

EX:  I saw a guy I used to work with doing about a Million at a bank with "deep relationships" and high end referral sources and relationships that were "beyond the scope of what the bank could compete with".  3 Years later he is setting on 28 mil in AUM and is living a life of humility and under 250K a year in production at SB.  He has diapoointed himslef as well as his boss and he has a profound dislike for the wirehouse environment.  He admits he did not do proper research, but rather was enticed by the recuiter and the transition package.   He is already trying to negitiate another deal to unwind his error and basically start over. 


listen to rightway, he's 100% correct.


 I posted about this topic last month. and ive taken an upfront deal before, and have been tempted to take an other. even though the deal i took didn't work-out as expected.


I will say rightway's example isnt comparing apples to apples. It's very difficult for a bank rep to go to a wirehouse. But going from wire to wire is an easier transition. Im sure you'll be able to negotiate a 100% + upfront deal from any of the wire's.


If i were to move now, i would look at an institutional firm. bear or oppy, were you can differenciate from all the wirehouse managed money pushers.