FA Salary at Morgan Stanley
I am an Indy and am considering moving my book to MSSB. Someone told me that the FA's at MSSB get a $455 per week / $1820 per month month salary. Question: Does this salary get paid back as you earn commissions or is it yours ? Thanks
If you're in production and not a trainee as far as I know there is no salary. But, they change their comp plan all the time. Call at BoM you're talking to and ask.
The $1820 a month is a minimum that they have to pay out, courtesy of the lawsuit they had a couple of years ago from female brokers. If you do $500 gross that month, you get the minimum $1820; if you do $50,000 gross, you get the $50k paid at grid. I can't remember if it's cumulative or not, but I don't think so.
So, no, it's not a salary plus commission arrangement. You can't earn less than the $1820 in a month, but you don't get to stack the comms on top of it.
I was at SB, and went Independent. I'm curious as to why you're heading the opposite direction.
Bodysurf is correct.
It's the greater of commission versus minimum salary.
It's 100% commission as a non-trainee FA but they will pay you at least the minimum if you did $0 one month.
If you're still "new" and moving over a small book and get hired into the FAA program that's different. There is a salary of say $40-60k a year for the training period. In that case you get your salary plus commissions once you bring in more then your salary.
At month 5 (or any month, it could theoreticly happen at month 1) you've brought in $40,000. All gross commission above the $40,000 mark is paid at grid in addition to the salary.
So monthly salary of: $3,333
YTD commission of $50,000
You get the $3,333 PLUS the grid pay out on the $10,000 above your $40k/year salary.
Say you do $20k the next month - you get the $3,333 plus the grid pay out on the $20,000.
This goes on for the first 18 months of production and then tapers down by a sixth per month until hitting $0 (or in this case the state minimum).
It's a very generous comp plan for FAAs. Financially at least the firm takes care of everything for it's newbies.
As far as the prospecting part (IMO the hard part, at least for me) you're on your own for the most part.