The battle between
MSSB has reportedly increased its total recruiting package to 330% of an adviser’s annual production and is now offering a new retirement plan where advisers are allowed to leave in three years or less. Meanwhile,
On the other hand, MSSB is trying to combat its rival’s recruitment package by offering even more attractive bonuses to lure younger advisers to its salesforce.
Scott Smith, a senior analyst with Boston-based consulting firm
“They have growth potential in their careers,” he said. “Younger advisers will team up with more experienced ones [that] can grow them into producers,” he said. Since most of these advisers are currently tied to retention packages, the competitor continues to change and adding more deals to their packages.
“Of course, they would prefer to fill up their desks with $700,000 producers, but if there are no $700,000 guys around, they'll go to the next best option,” Smith said.
Mindy Diamond, president of
In wake of the financial crisis and then the early 2009 joint venture between Morgan Stanley and
“When the joint venture happened they ignored producers under [$500,000 in production] and now they are offering packages to those doing dramatically less,” said Danny Sarch, president of
Spokeswomen from both MSSB and Merrill Lynch declined to comment.