BAI Retention

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Oct 24, 2008 5:47 pm

Got “transition” package info today. Here’s how it looks:

2mm+   50%

900-2000 40%

600-900   30%

350-600   20%

all are paid in 3 annual installments beginning in 2010. paying 4% interest on unvested balance.

What are your thoughts? Would really have liked upfront note with same vest. Why do you think structured this way? I am in the 900 -2000 category.

Oct 24, 2008 6:00 pm


  What is BAI's payout grid.  I hear Merrill is change our grid to yours?
Oct 24, 2008 6:35 pm

bye bye ml fa’s. enjoy your life with the “bank” it should be fun, but not profitable, lucrative, or fullfilling.

Oct 24, 2008 6:40 pm

41% trailing 6 months annualized at one million. I think around 600 is 36 or 38. I can check on Monday. Can’t remember. We get about 6.5% additional in restricted stock if you make certain amount of deposit referrals to the bank about 4mm annually, and about 12 new bank clients per year. Pain in the ass with a couple other sort of admin things ou have to hit . Funded largely by a cut in 12 b1 fees, paid out at 30% with 10% used to fund the “success award.” Hear you guys don’t get paid at all on c shares or 12b1 fees. On a 2 man team doing 3mm, with about 500 coming from 12b1s.

Oct 24, 2008 6:44 pm

To ezmoney: not much should change for advisers. They’ll be amazed by the compliance, but other than that, it should not be much change for advisers. For us, we’re doing all the changing. But some of our guys are doing 6mm a year, so some real guys. Look out on the job cuts though. They say 7bb, they mean 9bb. They mean sooner than later. These charlotte guys will smile at you while they cut your throat.

Oct 24, 2008 8:37 pm

Bonded-  You are correct we do not get paid on 12b1 fees.  It’s a real sore subject for most advisors. 

Oct 24, 2008 9:06 pm

thats obviously going to be sore point for me. I suppose that will be as they say an opportunity to move to fees but What do you think about our package? There ae about 500-700 wirehouse type guys here. Just so you know, no leads. no leads at all. really. Some small pockets get them, but not with all you guys too. seriously.

Oct 24, 2008 9:09 pm

having come from there I feel fo you guys. A very bad place to make a living.

Oct 24, 2008 9:18 pm

ezmoney: you must be a recruiter or something or just one of those guys that you should just avoid in the office. You know the guys always bashing the firm and dragging people down around you. Can’t we all just get along and bitch with rationality?

Oct 24, 2008 9:23 pm

harshworld: whats the mood like there? are you guys (mer) as big o Aholes like everyone says? seems from our vantage point like you guys don’t have to change at all, and we have conversions, systems, statements, training, management changes, everything. Most of our guys, at least the 1 millions dollar guys would rather go through that with a check in their pocket, than stay and go through it with you aHoles ( no offense). All cirlceling with 200+%

Oct 24, 2008 9:25 pm

ezmoney: you must be a recruiter or something or just one of those guys that you should just avoid in the office. You know the guys always bashing the firm and dragging people down around you. Can’t we all just get along and bitch with rationality?

  LOL Spoken like a real broker that is dealing with the new reality.
Oct 24, 2008 9:28 pm

brokerfee: nice! what do you have to add? More or less just looking for info. What do you know?

Oct 24, 2008 9:35 pm

Sorry Bonded...I'm just browsing through this tread I'm not BAC or ML, I made already made my jump to freedom (Indy) from the wirehouse model. EZ is right about one thing and that matter how much info you uncover as long as a large bank is involved the chances of building a good profitable business is almost impossible. But good luck to you.

Oct 24, 2008 9:41 pm

Bonded:  Some of the “advice” on here will be a little harsh but you can certainly wean through the sarcasm.  You have less than 10 posts so you’re a little late to the Bank of America bashing in this forum.  No need to be defensive.

  On topic, I'm just shocked to get anything in terms of transition.  I'm suprised that BAC is as generous as they are, considering the peanuts they paid out during the Quick & Reilly / Fleet merger.  By the way, those stock grants from that merger STILL haven't vested and they're worth half of what they were 4 years ago (yeah,  I know, at least it's not zero).
Oct 24, 2008 9:44 pm

Several restrictions on who is entitled to the BAC retention money (regardless of grid):

1. Anyone with a current transition package. 2. Anyone hired after December 2005.   Both of those caveats effectively eliminate half of the FA's in the Northeast, where there was a lot of turnover from Quick & Reilly.
Oct 24, 2008 9:47 pm

I posted this on the Merrill Retention Bonus thread already.

They are doing absolutely nothing for FA's who started 2005 or later with any type of agreement regardless if you are a 350, 500, 800 etc. You are completly excluded which is a bunch of cra... I can see a group lawsuit coming from those 500 plus advisors who signed promissory notes based on working for BAI in bank setting not a wirehouse. At the least they should let all the people in that category be able to pay their notes back right now and get bonused back to do away with any remaining years on the notes.   I might be reading this thread wrong but from the conference call I was on for BAI today it sure sounds like the 2000 FA's at BAI will be transitioned to ML platform and nothing will change over there for a year. Keep the ML grid,etc.   The PB & I model appears to be dead which is great since most FA's never got referrals anyways and will not actually be on a wirehouse grid vs the lowly bank grid. Other pluses I would think is ML has there own clearing house instead of using the horrible NFS which claims no accountability for any errors, a superior bond desk and probably much better client connections and financial plan software.   Oh,  one thing will definitely change for all ML guys, NO MORE BROKERED CD'S! I'd bet money on that one.   Just a bunch of random thoughts. See pros and cons for the BAI guys nothing really changing for ML guys for the first year anyways then watch out for Lewis to start shedding the commission grid with reduced trailers etc.
Oct 24, 2008 9:47 pm

BACFA you just ruined the weekend for all of theose NE bank reps that had plans to spend that whopping 20% bonus payout

Oct 24, 2008 9:49 pm


ARE YOU SURE THAT ISN"T JANUARY 2005? It wasn't specified on the phone call but all of us assumed January. I have a lot of friends who came before December but after january
Oct 24, 2008 9:55 pm

Isn’t it amazing how anything under 500k makes you feel like a scrub on either side. I remember at Jones you were treated like gold if you made that. I believe at 40% that is 200k net and a great living in almost all parts of the country. I guess you aren’t profitable enough at this firm because of the immense overhead of idiots at the top.

Oct 24, 2008 10:06 pm

Broker Fee: If you had to deal with our measly “trailer” grid and awful bank partners, you’d be delighted with the 20%, too! 

  southcampus:  I was on the today's call but I'm not sure if it's the same one that you were on.  This forum doesn't like it when we mention names and I don't know whether there were multiple ones scheduled.  My guy said December 2005 but he also mistakenly said the trailing 6 month number was from January to August.  I couldn't find a printed version of the package anywhere.   I think BAC has made it very clear on this and previous calls that we are moving entirely to the ML platform.  Like you, I hated NFS so this will be a spectacular change.   I can only hope that the PBI model is dead.  All the CM's are talking about these days is loans and credit.  It gets pretty annoying.   I don't know about the fate of brokered CD's.  It's a popular product at ML but you're right, BAC is very heavy-handed about being a BANK first, anything else is second.   I believe that ML is giving the package to anyone that qualifies and the money is used to pay off any remaining notes (from a previous move).  Not sure why BAC won't do that with us.