Morgan Stanley and Smith Barney brokers appeared hopeful last month when James Gorman, co-president of Morgan Stanley and chairman of the new joint venture, confirmed that there would be retention deals for both sides, with the “packages structured attractively in line with industry practice.”
The intent, of course, being to dissuade top brokers from leaving.
Many recruiters anticipated the retention deals to look a lot like those offered by B of A to Merrill’s brokers.
Our President and CEO, Bill Willis, cautions that the change in the political environment may result in limiting “over generous” packages, especially if the money comes from bailout funds.
When interviewed by Helen Kearney, reporter for On Wall Street, regarding this issue Bill expressed:
“It’s hard to conceive that Democrats will approve of paying stockbrokers who are perceived to be wealthy individuals, to stay at the firm.”
So, again the question comes back to us…will the brokers jump ship and where are they going to go?
A lot fewer options out there now, but in this economy, brokers are going to look for good product and technology for sure, and we see a lot of potential with some strong Regionals looking to grow and take advantage of our rapidly changing financial industry.
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What are some options in terms of where the brokers can go?
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Great question… I’d like to hear some of the options as well.
thx