Paying Back WS Retention

Dec 5, 2008 4:53 am

Looking for a little assistance from any Legacy AGE brokers whom have left and if so, have you paid back the retention bonus. Reason I ask is we are getting ready to move and have heard different rumors regarding the bonus. We know of one broker who left a few months ago and still has not been harassed to pay it back. Curious to know if and when we would have to pay, does the branch manager have any influence? Not a big deal if we have to pay it back but of course, we would like to keep as much as we can!

Dec 5, 2008 5:09 am

Originally Posted: 10 Nov. 2008 at 10:19pm My new firm (SF) has a person who handles this and I hear they are extremely familar with the whole WS pay-back procedure. Basically the amount owed for the Wachovia Securities Promissory Note was deducted from the new Stifel Demand Note and I kept the difference. SF mailed them a check and I did absolutely nothing except answer an email to someone at SF's HQ. A letter was mailed to my new firm within one week of me leaving from Wachovia Securities; 10700 Wheat First Drive; Glen Allen, VA from a Senior Adjustor in the FA Collections Dept. It stated: "The Note due specifies that if you leave the employ of this firm for any reason, the balance owed by you shall be accelerated and become immediately due and payable." Continues with: "Please take note that the Nonsolicitation Covenant paragraph of the Promissory Note provides - In consideration of the amounts advanced by Wachovia or any successor company ends for any reason before the entire amount of this Note has been paid in fuill, FOR A PERIOD OF ONE YEAR THEREAFTER, you will not solicit, directly or indirectly, the business or accounts of any of the customers of Wachovia (a) serviced by you during your emplyment with Wachovia or (b) whose names became known to you during your employment by Wachovia until such time as you have paid Wachovia the remaining unpaid principal balance and accrued interest then owed under this Note. This nonsolicitation covenant will terminate and be of no further force and effect after the remaining unpaid principal balance and accrued interest due under this Note have been paid in full pursuant the terms hereof." (All caps and bold in the letter). Also states: "You acknowledge that a breach of this nonsolicitation covenant may result in Wachovia or any successor company suffering immediate and irreparable harm, and you therefore consent to the issuance of a temporary restraining order or other injunctive relief to enforce the terms of such nonsolicitation covenant." Finally: "Please be advised that if this matter is not resolved within ten (10) days of the date of this letter, Wachovia will initiate proceedings against you in order to secure payment. We will claim the full amount due, plus interest, attorney's fees and all costs and expenses incurred during arbitration." The End, and the Legacy AGE rep moved on and had a much better life.....

Dec 8, 2008 1:06 am

Does anyone know if we leave WS and get out of the business all together will WS really come after us for the $? WB has caused my business to tank! During the Citi, WB, WF mess I lost 20% of my clients and now I get the new payout and the company wants to charge $60 for a single account. I just don’t see why they would come after us for the money considering the amount of money the management lost last quarter. It is a shame that AGE employees and our clients have to be involved in this mess with such a poor company.

Please advice with your thoughts! Thanks, AGE Employee wish I wasnt a WB Employee

Dec 8, 2008 2:00 am

I think they will want the money. You may be able to negotiate a lower amount to pay back. I have heard of this happening at other firms. Dont know anyone in Wachovia that has been through this …yet. As to acct fees. The AGE guys seem to be really caught up with this. I know it can be a pain in the A@@, but I have yet to work for a firm that didnt charge an annual acct fee of some kind for smaller households. For households at Wach 250k and up, no acct fees. From a business point of view, they spend a lot of money on postage (too much crap goes out, but unfortunately is req by regulators) Then you have tax reporting etc. Cost the firms money to do this and they are trying to recoup some of the expenses. I guess one could argue this should be part of the costs clients pay in commissions, but the smaller households generally dont generate enough to rate. You could have a smaller acct, say 50k in an etf or mf wrap acct and it wont be charged an annual acct maint fee. I hate re-explaining away the fees to clients but if they will close an acct because of the $60 fee, then odds are they were D or C client at best. Hope I dont sound cold, but its just business.

Dec 8, 2008 3:56 am

[quote=broker08]Does anyone know if we leave WS and get out of the business all together will WS really come after us for the $? WB has caused my business to tank! During the Citi, WB, WF mess I lost 20% of my clients and now I get the new payout and the company wants to charge $60 for a single account. I just don’t see why they would come after us for the money considering the amount of money the management lost last quarter. It is a shame that AGE employees and our clients have to be involved in this mess with such a poor company.

Please advice with your thoughts! Thanks, AGE Employee wish I wasnt a WB Employee[/quote] They'll definitely come after you for the money. BTW, how did Wachovia cause your business to tank? I'm not defending Wachovia, they all suck as far as I'm concerned, but c'mon, we all know that strong client relationships will withstand all types of environments. From the sound of your post, the 20% you lost, must've been your top 20% b/c your apparently busted. get on the phones and take care of your book!!!!! quit whining. Nobody owes you jack shit.

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broker08

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