InvestmentNews.com reports today that brokers at Merrill Lynch are being encouraged, by way of changes to the firm's compensation plan, to focus their attention on larger accounts. According to the report, the grid change includes raising the minimum account size to $250,000 per household, up from a $100,000 threshold. If I understand the article correctly, advisers can continue to bring in new clients below that amount, but will receive only a 20% payout, or, if the broker's book consists of 20% or more of accounts at that level, then they won't get paid for any new accounts under the new line. Given everything that has happened over the past many years, I don't think this change will cause a mass exodus of brokers departing for other firms; indeed, the wirehouses often focus on wealthier clients. Certainly, however, some brokers may make a move because of the effect that the new compensation grid may have on them, and some brokers may move for other reasons. But if a broker is considering making a move, what should the broker consider?
I've written several posts over the years aimed towards brokers thinkning about making a move. Be sure to check these out here.
A Primer for Brokers Considering Changing Firms.
Changing Firms or Going Out on Your Own? Consult a Lawyer.
Sometimes the grass is greener, sometimes it is not. Before making a big move, consider it fully, and engage experienced professionals to help your transition succeed.
