MSSB Comp Plan 2010
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I’ll have to say the new comp plan looks good overall. Penalty box lowered, bonuses for Net New assets as well as bonuses for 1MM new households etc.
The only ones seem to be getting the shaft are the FAA's. Salary plus commision is going away, grid is being lowered, and we are subject to the small household policy just like the seasoned vets. Great timing...... OK rant over....[quote=SB0807]I’ll have to say the new comp plan looks good overall. Penalty box lowered, bonuses for Net New assets as well as bonuses for 1MM new households etc.
The only ones seem to be getting the shaft are the FAA's. Salary plus commision is going away, grid is being lowered, and we are subject to the small household policy just like the seasoned vets. Great timing...... OK rant over....[/quote] The new FAA plan isn't even out yet?? Where are you seeing salary + commish is going away??? I know we are subject to the small household policy and the grid is lowered a little bit, it's still pretty good for rookies though among the bigger firms.[quote=newbieFA1079][quote=SB0807]I’ll have to say the new comp plan looks good overall. Penalty box lowered, bonuses for Net New assets as well as bonuses for 1MM new households etc.
The only ones seem to be getting the shaft are the FAA's. Salary plus commision is going away, grid is being lowered, and we are subject to the small household policy just like the seasoned vets. Great timing...... OK rant over....[/quote] The new FAA plan isn't even out yet?? Where are you seeing salary + commish is going away??? I know we are subject to the small household policy and the grid is lowered a little bit, it's still pretty good for rookies though among the bigger firms.[/quote] New FAAs will only get the salary. Current ones getting salary+commision will probably be ok if 1 year+ in producation. As far as grid cut being "a little bit". Going from .37 to .34 is an 8% reduction, I don't call that a little bit.[quote=SB0807][quote=newbieFA1079][quote=SB0807]I’ll have to say the new comp plan looks good overall. Penalty box lowered, bonuses for Net New assets as well as bonuses for 1MM new households etc.
The only ones seem to be getting the shaft are the FAA's. Salary plus commision is going away, grid is being lowered, and we are subject to the small household policy just like the seasoned vets. Great timing...... OK rant over....[/quote] The new FAA plan isn't even out yet?? Where are you seeing salary + commish is going away??? I know we are subject to the small household policy and the grid is lowered a little bit, it's still pretty good for rookies though among the bigger firms.[/quote] New FAAs will only get the salary. Current ones getting salary+commision will probably be ok if 1 year+ in producation. As far as grid cut being "a little bit". Going from .37 to .34 is an 8% reduction, I don't call that a little bit.[/quote]I'm not sure if I heard correctly but we just hired a new FAA and I think that his salary is higher than the old average, but it works like a draw. For example, instead of getting paid $50k salary + commission, he gets $75k, but 100% of it must be earned back before he gets paid any bonus or commission. I guess this is nice from a cash flow perspective (don't have to worry so much about paying the bills), but the people under the old plan would get $100k in the first two years instead of a $150k interest free loan.
Overall, I am still perplexed on how they really expect the new guys to make it. I had a conversation with the #2 producer in our office today... he built his business very quickly. He said he could have never made it with the new policies. He is currently going through the process of dumping all his under $100k accounts and came to the realization that most of the accounts he opened in the first couple years were under $100k. He then used this as a foundation to get the bigger and better accounts.
So how should us new guys move forward? We were playing with the numbers today... and I think if I can open $40MM worth of new $50k households, I can take home almost $50,000 net.
The best thing I can figure out is sell "small household rules exempt" products like alternative investments and small 401(k) plans. Of course, 401(k) plans can be a time consuming, labor intensive, nightmare and you can't even talk to anyone about alternatives unless they are a qualified investor. Even then, you can't talk about specific products until they complete a questionnaire and you have known them for 30 days.
Anyone have any better ideas?
I'm taking the series 31 in a few days. I guess I'll work on my alternative cold calling script:
"Hi there! would you like to learn more about managed futures? Fill out this form and I'll call you back in 30 days and tell you more!"
None of these major B/D’s have a plan or clue. Everyone of them keeps changing their methodology on how to train new FA’s. Having said that, Jones seems to have a consistent system. Hell, even some of these little bucket shops around my area have more of a system.
I would say you have to concentrate on what will get your production numbers up - so you can get paid. As one experienced FA said, it is 10 hours a day and 5 years before you make any headway.
MBA, I am in the "draw" program that you are talking about. From what our BOM says it depends which side (MS or SB) you were hired on. We begin pocketing commissions once the base salary is covered.
I lucked out. I’m on the salary + because of the date I was hired.
Don't have to cover before I make commissions