Merrill Retention
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What are the odds that BAC will not pay it since they just got 20 Billion from TARP
We’ll see when the word finally gets out about them using tax dollars to pay billions in retention bonuses, while the rest of the world gets laid off.
I think its already been paid. I would imagine it was worth a few hundred million. What if BAC goes under and those brokers get a check to move in addition to their checks to stay at BAC
Wow it would be nice
Talked to a co worker in my old office . A guy who’s on ACTM said the retention might be renegotiated.
Retention has not been paid- supposedly on or before the 23rd…beginning to wonder what is going to happen. Funny that our deal was collapsing in December while management of the firm was telling us how great things were going.
There is no credibility left at ML. I think this firm is going to fail. Just my opinion.Heard that same comment from multiple, decades long FAs the last few days.There is no credibility left at ML.
FA's at ML must be upset by this. I know they were expecting to be paid prior to the new year and supposedly are paying interest on the loan but have not been paid the actual bonous?
I could see the package being renegotiated, actually BAC should just relinquish ML and let what happens happen. I think the firm makes it, however they lost all their top people so i suppose thats not possible at this point......I’ve never met a ML broker that I liked and I hope they get stiffed, just like they deserve.
Hank, that’s pretty cold. I’m not a fan of ML, but I hope the people at the company come out of this ok one way or another. Its a very tough spot to be in and I don’t envy them. Plus, bad news for any one company in this industry reflects on us all, at least in the eyes of many of our clients.
The brokers at all these wirehouses have gotten screwed by stuff completely unrelated to their business. I hope it works out for all involved, no matter which firms they are with.
[quote=kappa1997] I think its already been paid. I would imagine it was worth a few hundred million. What if BAC goes under and those brokers get a check to move in addition to their checks to stay at BAC
I bet it’s more than that. Let’s say 5,000 FA’s got retention at an average of $100,000 each. That’s, hmmmm, $500mm. I bet the number is well more than double that when all is said and done. After all, didn’t $1mm producers get like 100% of t-12? How many 1mm producers do you think they have? That’s a lot of coin for taxpayers to cough up when half the country is getting laid off (or when 30,000 BAC/ML employees are being laid off). Hell, if you take their"average" producer at $750K T-12, and give them 25%, that’s over $900mm.
Merrill said about 6,200 reps were eligible for retention, and about 95% signed their agreement.
“Those reps producing over $1.75 million will get 75 percent in upfront cash, taxable over 7 years, and another 25 percent in deferred bonus over three years. For reps producing $1 million to $1.75 million, the package includes 75 percent in cash upfront, and another 25 percent based on growth in production over a three-year period.
For lower-producing Merrill advisors, the offers range from a total of 75 percent of trailing 12, to 20 percent of future growth. Advisors producing $750,000 to just under $1 million will get 50 percent upfront cash over 7 years and 25 percent on growth in production over three years; those producing $500,000 to $750,000 will get 25 percent cash over 7 years and 25 percent on growth. For advisors producing $250,000 to $499,000, the deal includes just 20 percent on production growth in deferred cash over three years. (On average, Merrill reports that its advisors produce $767,000 in revenue a year.)”
There is an article out on reuters saying retention may be delayed or renegotiated due to last weeks news. The article says retention was reported to be 3.8 Billion.
The brokers at all these wirehouses have gotten screwed by stuff completely unrelated to their business. I hope it works out for all involved, no matter which firms they are with.
I'm glad to see someone has a heart. I'm pretty sick of the tone of this board. There are some real jerks around here. Between them and the "chicken littles" I feel bad for a lot of your families.
[quote=fritz]There is an article out on reuters saying retention may be delayed or renegotiated due to last weeks news. The article says retention was reported to be 3.8 Billion.[/quote]
Can you post a link?
FYI, I do just fine myself. I have every offer you can have. I just can’t stand the apparent joy that some of you clowns get from other’s hardships.
I’m sure “Rainmakers” like Ferris all have enough time to have 608 posts to this forum.
What I am wondering is how can anyone here be having hardships? It seems as if everyone here is a million+ dollar producer. I think I am the only one in this prison that is guilty at < 1/2 million. Everybody posts there hardship on one thread and then talks about being in the million dollar club in another thread. Sorry, no sale here…
[quote=Bud Fox]What I am wondering is how can anyone here be having hardships? It seems as if everyone here is a million+ dollar producer. I think I am the only one in this prison that is guilty at < 1/2 million. Everybody posts there hardship on one thread and then talks about being in the million dollar club in another thread. Sorry, no sale here…[/quote]
I am with ya Bud!
Ferris: That's great you did $800, but it's the fact that you call yourself a "rainmaker" that I think is humorous. $780k is the average at ML, and although many of the thundering herd have enormous egos, very few would call themselves a rainmaker.
Ferris: For the record, I did $607k at LOS 6. Not shabby, but a long way to go. There are people who do $500k+ just by inheriting accounts from departing FA’s or inheriting their daddy’s book. They are hardly rainmakers. It’s also a lot easier to do more production in different areas simply b/c of demographics and selling certain products. I know $1M+ producers working at local banks simply selling “B” share annuities and taking 7.5% upfront. Everything’s relative, but I don’t use the word “rainmaker” so liberally.