Morgan Stanley gets aggressive in luring brokers

Thu Nov 12, 2009 12:25am GMT
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* New package comes after some brokers leave firm

* Adds fourth- and fifth-year incentives

* Top performers could get 330 pct of fees and commissions

By Elinor Comlay and Clare Baldwin

NEW YORK, Nov 11 (Reuters) - Morgan Stanley's (MS.N: Quote, Profile, Research) brokerage unit is getting more aggressive in trying to lure financial advisers as the wider retail brokerage job market heats up.

Morgan Stanley acquired most of Citigroup Inc's (C.N: Quote, Profile, Research) Smith Barney in the spring, a deal that had been touted as boosting the company's number of financial advisers to more than 20,000.

In June, the company lowered its forecast for how many financial advisers would staff the joint venture to 18,500. That number dropped to 18,160 by the time Morgan Stanley Smith Barney reported results in October.

Morgan Stanley Smith Barney is still the largest U.S. retail brokerage by number of financial advisers.

As it seeks to recruit more advisers, the firm began offering top performing brokers at rival firms as much as 330 percent of their annual fees and commissions over five years if they join the newly combined firm, according to head hunters. Second-level brokers could earn as much as 280 percent.  Continued...

 
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