Morgan Stanley Dean Witter Raises Production Bar Surprise change hits some reps with immediate 25% payout. Brokers are hot.
In a last-minute move, Morgan Stanley Dean Witter hiked its minimum gross production requirements for brokers just days before the policy was implemented.
The change took effect Dec. 22, 2000, the beginning of the 2001 production year. Brokers whose 2000 production failed to meet the new hurdles are getting a 25% payout until they reach the goals.
Five- to 10-year producers are now required to gross $250,000, up from $150,000. Veterans of 10 years or more have to produce $300,000 - the first time a separate minimum has been instituted for seasoned producers. (See "Dollar Signs," Page 56, for more on compensation changes at MSDW.)
An MSDW broker from the South who is affected by the move got a heads up from his manager before reading about the new pay policy on the firm's Intranet. "I was livid when I read it in print," the rep says. "This is cold-hearted. I think the notice should have been longer. Brokers will just move. Headhunters are already calling us from New York."
Some producers are more pragmatic. "Everybody's upgraded their expectations for people," says an MSDW rep from the East Coast. "If you expect to be in this business, you've got to set your sights higher."