Merrill Lynch has beefed up payouts for advisors on the brink of retirement by increasing award payouts for retiring advisors at all production levels. The award has increased by five percentage points for the lower-production tiers while the top producers ($7.5 million or more) could see their payout jump a whopping 75 percentage points to a maximum of 275% of their trailing-12 month production. It's a big move, especially since the wirehouse revealed last month that it wouldn't be improving its 2020 compensation grid. “We want all of our advisors to start here, build their client base here, and retire from here,” President Andy Sieg said in a company memo announcing the longevity incentive. But will these new inducements keep reps from breaking away?
Will Merrill Lynch's Big Retirement Sweetener Keep Advisors From Breaking Away?
Yes. This will keep people in the Thundering Herd — particularly at the top production level, where lately they've had problems with retention.
No. Money might be the problem for some reps, but many have issues that won't be solved with a payoff.