Who Are the Kings of Wall Street Now?

High end producers have always been tops on Wall Street as far as payout goes.

But lately, we financial recruiters are seeing some regional firms creating new categories and upping their compensation for top end producers…so, you may ask, who are they and what are they offering?

During 2009, RBC Wealth Management brought in 308 advisors, and to entice the top producers they added three new brackets at the top end of their payout grid…and get ready for this, the grid goes all the way to $5 million-plus with a 50% payout – one of the highest in the industry! (Morgan Stanley Smith Barney’s new payout grid for million + producers tops out at 47%).

Granted, not a large number of these top producers have gone to the regionals, but those that have found that these firms had similar services to wirehouses with large branch offices, investment banking services and fee based platforms.

The regionals who typically are recruiting the mid-range producers are also banking that these advisors will grow their production as market conditions improve…rather smart planning considering they pay less for these advisors now, but benefit when they grow.

So, why not set higher grids in place as incentives and for purposes of retention? Definitely some advantages here for advisors contemplating a move.