Just 15 days after it announced it was buying A.G. Edwards for $6.8 billion in cash and stock, Wachovia Securities has announced its retention package for A.G. Edwards reps. The package is based on a combination of production and tenure and includes a base retention award, along with an additional retention award payable in 2012 – assuming certain production levels are sustained until then.
Under the terms of the package, eligible A.G. Edwards advisors are permitted to choose to receive the base retention award as a loan bonus program, annual cash installments or a combination of the two. The amount of the award will be determined by an advisor’s tenure with the firm and his or her trailing 12 months production as of February 28, 2007.
Total awards, including the base and additional retention award, range from 20 percent of trailing 12 for reps producing between $100,000 and $199,999 annually, to 100 percent of trailing 12 for advisors with annual production of $1 million or more. Awards based on industry length of service will be provided to those advisors who do not meet the minimum production level. Wachovia Securities reps were also given an additional sweetener to encourage them to stay with the firm as it moves through the integration.
A.G Edwards reps will have the weekend to mull it over. Here are the details:
|PRODUCTION||BASE RETENTION AWARD||LOYALTY AWARD||TOTAL RETENTION AWARD|
|$1,000,000 or greater||70%||30%||100%|
|$750,000 - $999,999||65%||25%||90%|
|$500,000 - $749,999||60%||20%||80%|
|$400,000 - $499,999||50%||20%||70%|
|$300,000 - $399,999||40%||20%||60%|
|$200,000 - $299,999||20%||20%||40%|
|$100,000 - $199,999||20%||0%||20%|
|Less than $100,000||Based on length of service||0%||Based on length of service|
PRODUCTION RETENTION AWARD
|$1,000,000 or greater||35%|
|$750,000 - $999,999||30%|
|$500,000 - $749,999||25%|
|$400,000 - $499,999||20%|
|$300,000 - $399,999||15%|
|$200,000 - $299,999||10%|
|Less than $199,999|| 0% |
FAs who achieve a T-12 of $200,000 by the end of the year would receive an award of $20,000.
Source: Wachovia Securities