The Wall Street Journal and others are reporting that Merrill Lynch has upped its recruiting package for top-40 percent advisers by offering an upfront cash bonus of 150 percent of the fees and commissions they generate from clients. In addition, they are eligible to receive back-end awards, including 25 percent of production at their prior firm if they bring over 65 percent of their client assets within 6 months. Merrill is further offering a 50 percent bonus (half in cash, half in stock) if they bring over 75 percent of their clients’ assets in the first year. All told, these recruits could earn a cash bonus of about 200 percent of their annual production the first year.
Financial industry employment contracts often contain claw back provisions and often do not contain explicit provisions covering any promised support and resources. Recruits should have their proposed contracts examined by an experienced attorney who can advise them before making a commitment.
Page Perry attorneys have represented a wide variety of clients in connection with employment law concerns including companies, management personnel, legal personnel, partners, professional employees, and registered employees.