Starting Salaries at ML, UBS, SB

Thanks for the post, Ace.

To me, it's always interesting to get an inside view of how the "big boys" operate.

Yeah AGE hs offered me 50k to jump aboard…they told me it was “preapproved”…XP

still, it’s a great offer for a 26 yr old. I dont know what happens in yr 2 and 3 and despite not working for the biggest team in the world i might jump at the chance just for the money (plus, the quotas are realistic and very do-able)

Hey Anabuhabkuss,

Congrats.  You're right, that is good for a 26 year old.  My advice is to work your butt off for a couple of years, show some strong production, and then re-visit your options.

Option A: Go to a bigger firm

Option B: stay where you are

Point being, when you are a proven producer, everybody wants to hire you!

Good luck!

[quote=RecruitingAce]

For those of you who are wondering.. here is a break down of the top three. 

Starting Salaries

Merrill Lynch is on the high side, but "buyer beware"...   Usually between 40K and 80K.

UBS is up there also.  Usually between 50K and 70K.

Smith Barney is decent too.  Usually between 45Kand 70K.  (I have a candidate I was able to negotiate 100K for, but that was an exception)

Total Compensation

At Merrill, you only get to keep commissions if they exceed your salary in any given month. Definition:  monthly forgiveable draw.

At UBS, it's salary plus commissions, but if you are not meeting your goals, they take a percentage of your salary away.

At Smith Barney, it's salary PLUS commissions, and if you're not meeting your goals, they only bonus you less than if you are meeting your goals.

Translation

Let's assume you have been offered 60K (5K each month) at each of the three firms,and let's assume you are are beneath your goals and only generated  4K in commissions that month, of which your take is about $1,200. 

At Merrill, you take home 5,000 that month.

At UBS, you take home 85% of your salary, plus the 1,200.  That's about  4,250 plus 1,200 = 5,450.

At Smith Barney you take home 6,200.

[/quote]

In the interest of candor, when you post one of these comparisons, how about noting that you're only paid to recruit for SB?

isn’t what he described a drawal?

[quote=anabuhabkuss]isn't what he described a drawal?[/quote]

Drawal?  Like a Southern speech pattern?

dont ask me what i was thinking or doing when i typed that.

anyways yeah, monthly draw. is money still owed by the new guy if he has a bad month? from my understanding, if you have a draw and generate commish of say 1000, in this instance does that 1000 simply go to the company without burning a hole for yourself?

[quote=mikebutler222]In the interest of candor, when you post one of these comparisons, how about noting that you're only paid to recruit for SB?[/quote]

That thought crossed my mind also...and why you're at it, some of us might be curious where Morgan Stanley comes in at...

[quote=Indyone]

[quote=mikebutler222]In the interest of candor, when you post one of these comparisons, how about noting that you're only paid to recruit for SB?[/quote]

That thought crossed my mind also...and why you're at it, some of us might be curious where Morgan Stanley comes in at...

[/quote]

are you not with it all you have to say is morgan as in i will be getting an offer from morgan and want to know if i will have to repay my training costs when i fail to open a single account

NASD Newbie...

If I'm not mistaken, from reading these threads, Indyone is actually Independent and probably not looking to "jump into the business" with Morgan Stanley. 

[quote=entrylevelFA]

NASD Newbie...

If I'm not mistaken, from reading these threads, Indyone is actually Independent and probably not looking to "jump into the business" with Morgan Stanley. 

[/quote]

Who said he was?

[quote=Indyone]

[quote=mikebutler222]In the interest of candor, when you post one of these comparisons, how about noting that you're only paid to recruit for SB?[/quote]

That thought crossed my mind also...and why you're at it, some of us might be curious where Morgan Stanley comes in at...

[/quote]

MS only pays a salary in year 1, but in year 2 it's a salary plus 50% payout ( on anything but stock & bond trades).  There is also a stock bonus at the end of year 2 of 20% of your revenue (also excluding stock and bond trades).

In this example the total could be as high as $7,000 cash plus $800 in stock.

Keep in mind that this may have changed in the last 30 days since Gorman is on a cost cutting tear.

Actually, the exact compensation breakdown for Morgan Stanley depends on performance (I would imagine they all do), but in year 1 you receive salary, no commission, and a 20% trailing revenue bonus at the end of the first 12 months. Bonus at the end of year 2 is 25% trailing 12-month revenues, assuming you are in their "leaders" tier. Commission begins in year 2, also, if you last that long :)

[quote=iconsult100][quote=Indyone]

[quote=mikebutler222]In the interest of candor, when you post one of these comparisons, how about noting that you're only paid to recruit for SB?[/quote]

That thought crossed my mind also...and why you're at it, some of us might be curious where Morgan Stanley comes in at...

[/quote]

MS only pays a salary in year 1, but in year 2 it's a salary plus 50% payout ( on anything but stock & bond trades).  There is also a stock bonus at the end of year 2 of 20% of your revenue (also excluding stock and bond trades).

In this example the total could be as high as $7,000 cash plus $800 in stock.

Keep in mind that this may have changed in the last 30 days since Gorman is on a cost cutting tear.

[quote=NASD Newbie][quote=entrylevelFA]

NASD Newbie...

If I'm not mistaken, from reading these threads, Indyone is actually Independent and probably not looking to "jump into the business" with Morgan Stanley. 

[/quote]

Who said he was?

[/quote]

It seemed as though you were implying so...perhaps I was just reading too much into it. 

I just threw MS into the mix because Mike had pointed out the SB recruiter's bias, and I knew Mike was with MS.  I honestly thought that MS would merit a mention with the other three...they surely are considered in the same ballpark, aren't they?

...and yeah...I don't ever intend to be someone's W-2 bitch again...just thought I'd clear up that question in case anyone wondered...

[quote=Indyone]

[quote=mikebutler222]In the interest of candor, when you post one of these comparisons, how about noting that you're only paid to recruit for SB?[/quote]

That thought crossed my mind also...and why you're at it, some of us might be curious where Morgan Stanley comes in at...

[/quote]

I really couldn't tell you, Indy, I haven't spoken to a recruit in a long while...

[quote=iconsult100][quote=Indyone]

[quote=mikebutler222]In the interest of candor, when you post one of these comparisons, how about noting that you're only paid to recruit for SB?[/quote]

That thought crossed my mind also...and why you're at it, some of us might be curious where Morgan Stanley comes in at...

[/quote]

MS only pays a salary in year 1, but in year 2 it's a salary plus 50% payout ( on anything but stock & bond trades).  There is also a stock bonus at the end of year 2 of 20% of your revenue (also excluding stock and bond trades).

In this example the total could be as high as $7,000 cash plus $800 in stock.

Keep in mind that this may have changed in the last 30 days since Gorman is on a cost cutting tear.

[/quote]

Do you know the first year asset and revenue targets?  Thanks.

I think their 2 year AUM goal is $12MM, not sure I would imagine 1/3 of that is the 1st year.  That would make it an even $2MM/quarter, but I’m not sure.  I’d tell you for sure but I never made it through to recruiting!   Also, I have no idea what the revenue targets would be.

[quote=entrylevelFA]I think their 2 year AUM goal is $12MM, not sure I would imagine 1/3 of that is the 1st year.  That would make it an even $2MM/quarter, but I'm not sure.  I'd tell you for sure but I never made it through to recruiting!   Also, I have no idea what the revenue targets would be.[/quote]

You're not sure about what?  You have no idea about what?

$2 million per quarter would equal $12 million two years?

[quote=maybeeeeeeee] [quote=iconsult100][quote=Indyone]

[quote=mikebutler222]In the interest of candor, when you post one of

these comparisons, how about noting that you’re only paid to recruit for

SB?[/quote]

That thought crossed my mind also…and why you’re at it, some of

us might be curious where Morgan Stanley comes in at…

[/quote]

MS only pays a salary in year 1, but in year 2 it’s a salary plus 50%

payout ( on anything but stock & bond trades). There is also a stock

bonus at the end of year 2 of 20% of your revenue (also excluding stock

and bond trades).

In this example the total could be as high as $7,000 cash plus $800 in

stock.

Keep in mind that this may have changed in the last 30 days since

Gorman is on a cost cutting tear.

[/quote]

Do you know the first year asset and revenue targets? Thanks.

First year target is $8mil. By year 2, you should be at $18 trailing 145k at least (think 75k per yr for the first 3 yrs). If you’re not there by then, you’re not necessarily on minimum standards list, but you better damn well accept that this (industry) might not be the place for you to be. In fact you’ll more than likely not even see yr 2 if you do not hit yr 1 standards.

[quote=lovetoraise]


He said 5 year goal to be successful is $100 AUM.



It could have been a scare tactic though.  [/quote]

It is.

Average AUM at Morgan is only about $55M. 

I don't really think the training targets matter.... if you are just barely hitting them, you are doomed anyway.

[quote=JCadieux] [quote=lovetoraise]

He said 5 year goal to be successful is $100 AUM.

It could have been a scare tactic though.  [/quote]

It is.

Average AUM at Morgan is only about $55M. 

[/quote]

It's a little higher now that we've lost so many people.  I think Gorman said is now about 70M and the revenue is about 560k.  (i might be off a little).  In a few years though, they want the average to be 100M and 750k.

[quote=iconsult100]

I don't really think the training targets matter.... if you are just barely hitting them, you are doomed anyway.

[/quote]

That's exactly right. AG.E's training program wants me to hit 30k the first year. If that becomes a problem, then I shouldn't even be on this forum. Where it does get complicated is if you're on a team and are structured to where, after your split, you're able to achieve that goal. That's what stresses me at night.

SB Goals -   5-7M  in AUM in your 1st year of PRODUCTION - so if you join them without a Series 7, then that means 5-7M by the end of your first 18 months from date of hire.  VERY REASONABLE.

And yes, I AM biased.  SB is a great program, and hard to beat by any of the other wirehouses.  So why spend my time recruiting for any other company?

I didn't mention Morgan Stanley because, well, until the dust settles there they really aren't comparible to the others.  In fact, I have heard from some of my candidates that they aren't even hiring again for a few months until things clear up.  I would be happy to learn from someone if I am wrong in that regard...

[quote=RecruitingAce]

I didn't mention Morgan Stanley because, well, until the dust settles there they really aren't comparible to the others.  In fact, I have heard from some of my candidates that they aren't even hiring again for a few months until things clear up.  I would be happy to learn from someone if I am wrong in that regard...

[/quote]

You're wrong. Happy?

BTW, since you're only paid to hire for SB shouldn't your comments be read with that n mind?

[quote=JCadieux] [quote=lovetoraise]

He said 5 year goal to be successful is $100 AUM.

It could have been a scare tactic though.  [/quote]

It is.

Average AUM at Morgan is only about $55M. 


[/quote]

It obviously was a scare tactic, but as others have pointed out, your AUM number is now pretty dated.

[quote=RecruitingAce]SB Goals -   5-7M  in AUM in your 1st year of PRODUCTION - so if you join them without a Series 7, then that means 5-7M by the end of your first 18 months from date of hire.  VERY REASONABLE.[/quote]

What is the goal for year two and year three?

Opie -

Year 2 is 10-14M, and Year 3 is 17-20M

Hey Mike -

When you say that Morgan Stanley is hiring, do you mean they are hiring into their training program as well right now?  Of course they are hiring established producers, but I specifically recruit for company training programs.

Can you be more specific?

Thanks.

[quote=RecruitingAce]

Hey Mike -

When you say that Morgan Stanley is hiring, do you mean they are hiring into their training program as well right now?  Of course they are hiring established producers, but I specifically recruit for company training programs.

Can you be more specific?

Thanks.

[/quote]

I'm told they are currently hiring trainees for the training program. If/when I have more info I'll pass it along.

[quote=RecruitingAce]And yes, I AM biased.  SB is a great program, and hard to beat by any of the other wirehouses.  So why spend my time recruiting for any other company?

I didn't mention Morgan Stanley because, well, until the dust settles there they really aren't comparible to the others.  In fact, I have heard from some of my candidates that they aren't even hiring again for a few months until things clear up.  I would be happy to learn from someone if I am wrong in that regard...[/quote]

I think this guy would beg to differ with you...

"Morgan Stanley hired Wesley Tate, a broker who produced $2.7 million in commissions and fees over the past year with Smith Barney in Oakbrook, Ill.

While at the Citigroup Inc. unit, Mr. Tate managed about $245 million in client assets, said Christy Pollak, a Morgan Stanley spokeswoman."

Indyone,

Allow me to clarify.  It is my understanding that Morgan Stanley is not currently hiring anyone into their TRAINING program.

[quote=RecruitingAce]

Indyone,

Allow me to clarify.  It is my understanding that Morgan Stanley is not currently hiring anyone into their TRAINING program.

[/quote]

That's not the case. I'm told people are being hired for it, although I haven't seen it myself.

I’ve seen some instances across the country where they have built their trainee pool.  It has been much more selective than in recent years, but they have brought on the “exceptional” candidate.  Much like the high selectivity of Smith Barney.