Morgan Stanley
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Anyone know if these rumors revolving around MSDW letting 1000 or so lower producers has any validity?
I have a buddy at MS down the street, and he says that rumors have been flying that they are going to scrape off the bottom rung producers and “ask them to update their resumes.” He thinks that the smackdown is coming soon…
<span =“text”><span =“lgText”>ML has the highest average production per rep for a reason: they fire their lower producers.
Those forced out will be welcome at the smaller regionals.
Morgan Stanley is down 500 reps this year. Not a good thing.
[quote=BrokerRecruit]Anyone know if these rumors revolving around MSDW
letting 1000 or so lower producers has any validity?[/quote]
I wouldn’t be shocked.
Everyone is competing to look just like Merrill, at least all the wires
are. They all want only the big producers and the biggest
clients. Problem is, there’s only so many to go around!
It’s all over the news today but some brokers I know at MS have been polishing their resumes and making calls for the last few weeks.
Where would an “underperforming” MSDW FA go? Obviously if they are a 3rd or 4th quintile FA at MSDW, they won’t be able to go to ML, SSB or UBS.
I heard today that ML does not pay reps unless the ticket is over $150,000. Any truth to this? Also they raised there account minimum from $150,000 to $250,000?
I am glad I am Indy!
Well, I figured the independent option is always there, but will a bank or even a regional pursue them?
What size book do you think the average FA being asked to leave MS has? Just curious, as this will determine whether they can make it as an indy or not.
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[quote=BrokerRecruit]Where would an “underperforming” MSDW FA go?
Obviously if they are a 3rd or 4th quintile FA at MSDW, they won’t be
able to go to ML, SSB or UBS.[/quote]
Um…Piper, Stifel, and all sorts of smaller regionals most of us have never heard of.
I’ll bet that a firm like Piper would welcome those MS folks with open arms. In fact, I know they would.
[quote=Indy in NY]
What size book do you think
the average FA being asked to leave MS has? Just curious, as this will
determine whether they can make it as an indy or not.
That's a good question. My guess would be $300k - $350k and under with an LOS of 5 - 8 years. (I haven't read anything yet.)
Now, at that range of production, the company's cut is about $200k. Do you think the $200k that the firm gets is enough to offset the cost of the office, supplies, and shared assistant that the rep uses? It's more than enough.
I think it is going to be a good thing for the regionals to get those MS folks who get the axe. It should also be something for all you folks who think that you absolutely have to work for a big wirehouse to think about. This is the industry. This is how it works. You can be profitable, but if you're not profitable enough you're out on your arse.
When they fire like this, do they still enforce non-compete and non-solicitation agreements?
That's a good question. My guess would be $300k - $350k and under with an LOS of 5 - 8 years.
MS wouldnt let them go- those are their 1st and 2nd quintile producers..
"I heard today that ML does not pay reps unless the ticket is over $150,000. Any truth to this? Also they raised there account minimum from $150,000 to $250,000? "
Not true. This topic has been beat to death the past few months. There are no account minimums, we can open a 5K account if we wanted, but we need to get the account ( through other transfers in, cash deposit, etc) to 100K within a year or we no longer receive payouts. Think of it as a 12 month grace period. Its firm policy that incents us to look "upstream".
[quote=inquisitive]
When they fire like this, do they still enforce non-compete and non-solicitation agreements?
[/quote]
That's a good question. I think the answer is yes. Why wouldn't they?
as an MS broker…the word is no official criteria has been handed down yet. the usual watermark is LOE 8 years and under 250k trailing 12. i know in my office there is at least 4 out of 25 that meet that criteria. who knows though. my feeling is that they will get a lot of these guys to take early retirement, not fire (3 of the 4 in my office would meet the early retirement mold).
[quote=frumhere]as an MS broker…the word is no official criteria has
been handed down yet. the usual watermark is LOE 8 years and
under 250k trailing 12. i know in my office there is at least 4
out of 25 that meet that criteria. who knows though. my
feeling is that they will get a lot of these guys to take early
retirement, not fire (3 of the 4 in my office would meet the early
retirement mold). [/quote]
Those smaller regionals will take those $250k guys. Happily.
Do you think jr partners of unregistered teams will be let go? 5 year in the business and 150-200k. Do the managers have discretion in letting people stay or not? Or do they just let them go without notice?
Hey bottom line is that MS let go lowest 10% of retail sales force. There are another 1000 to go! They want to get to 8000 retail brokers.
Hey Recruit,
If your GDC is 300 and your payout is 60, what car are you driving?
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