The retail brokerage unit of Bank of America announced it will be cutting the salaries of low-producing brokers and raising those of top performers in an effort to chase wealthier clientele, according to the Dow Jones News Service.
Under the new compensation plan, brokers who have been with the firm for at least five years but who fall below the $350,000 production level will be paid between 18% and 31% of their annual output. Previously they made 22% to 33%.
Associates meeting and exceeding performance expectations for their role have the opportunity to be more significantly rewarded from our compensation structure, said Matthew Card, a Bank of America spokesman.
Card said 15% of financial advisors pay comes in the form of a quarterly discretionary bonus for meeting goals in client referral, contact and satisfaction, as well as compliance.
Brokers who fail to meet their quarterly targets will have their pay reduced by 15%, but if they exceed expectations, they could receive bonuses beyond the typical 18% to 31% of their production.