Merrill Lynch

Recruit Deal

(Note: Offer closes to new candidates as of June 1, Revised deal has not been announced)

225% to 275%

Upfront payment: 150% to 175%

Back-End PAYMENT**:

**Excludes qualified non-qualified retirement assets

Transfer 65% of assets within six months to receive 25% bonus

Year 1: Hurdle – 75% of assets

Payout bonus: 50% of production (from same year)

Year 2: Hurdle – 95% of assets

Payout bonus: 40% of production (from same year)

Year 3: Hurdle – 115% of assets

Payout bonus: 30% of production (from same year)

Year 4: Hurdle – 125% of assets

Payout bonus: 25% of production (from same year)

Year 5: Hurdle – 155% of assets

Payout bonus: 25% of production (from same year)

 

PTA PROGRAM

Professional Transitional Advisors applies to new recruits with 3-10 years Length of Service

Includes three-year salary guarantee to supplement income during the transition plus a portion of grid-based compensation.

Comp/Payout
*Last Updated November 22

Incentive Cash Grid
Production Payout
$5,000,000 50%
$3,000,000 – $2,999,999 48%
$2,000,000 – $2,999,999 47%
$1,500,000 – $1,999,999 46%
Retroactive Grid
$1,050,000 – $1,499,999 43%
$850,000 – $1,049,000 42%
$650,000 – $849,999 41%
$450,000 – $649,999 40%
$350,000 – $449,999 38%
$250,000 – $349,999 35%
$0 – $249,999 35%

*Hurdles increased by $50,000 for under $1,500,000 in production in 2016

**Merrill Lynch determines payout according to production “credits,” which may be less than the total revenue the advisor has brought in

Small Household Policy:

Generally, no payout for households under $250,000 although advisors with less than 20% of clients under $250,000 can earn 20% on revenue from those households.

UPDATES FOR 2018
-Advisors (excluding certain recent competitive hires) must increase customer money by 2.5% or sign up at least three new affluent households to maintain payout. Brokers lose 1% for failing to meet each hurdle. Alternatively, those who increase new customer assets and liabilities (such as loans and deposits) by 5% and who bring in five new household accounts will get to keep 2% more of the commissions and fees they collect.
-An extra 100 basis points of grid payout will be deferred at each level
-Strategic Growth Award will be eliminated
-Penalty box for producers bringing in less than $350,000 will be eliminated
-Brokers will no longer earn payout or grid credit for personal and family retirement accounts.