There you go...
Wells Fargo Lifts Hiring Bonuses for Advisors Hitting Asset-Transfer Targets
Wells Fargo Advisors has enhanced its already elevated recruiting offer by adding asset-transfer and growth targets that can bring cash bonuses for top brokers up to 3.4 times the 12-month revenue produced at their former firms.
The catch in the new arrangement is that the upfront cash that brokers receive on Day One of their arrival has been lowered to 180% of their trailing-12-month production (T-12) from 200%. Wells is putting more emphasis on back-end performance targets, as measured by assets they attract over three years.
It will pay an additional 50% of T-12 to brokers who transfer 70% of their assets by the end of their sixth month, and another 30% at the end of each of their first, second and third years for hitting further asset-growth targets.
The performance-based change makes business sense at a time when Wells Fargo & Co.’s new management has introduced efficiency plans, including layoffs that led it to take $718 million of third-quarter restructuring charges, primarily for severance.
From a competitive point of view, Wells’ enhanced deal could pressure rivals such as Ameriprise Financial and Morgan Stanley that have been aggressive recruiters to stretch further, headhunters said.
Wells Fargo Advisors’ efforts to bolster its diminished ranks following the scandal has positioned it ahead of rivals on recruiting deals. It raised the top deal to 325% of T-12 in 2019, and also enticed headhunters by paying them up to 10% of a brokers’ trailing-12 month production for successful introductions, compared to industry standards of around 6%.
A Wells spokeswoman declined to comment on whether it would extend the sweetened offers to recruiters, which are set to expire at the end of the year.
“We continually assess and re-evaluate our recruiting deal in the context of the marketplace,” the spokeswoman said.
Wells Fargo had 12,908 brokers across its private client, bank and independent contractor advisory channels as of September 30, down by 2,718 from three years ago. The count was off a net 815 in the past year alone, but the bank has said that average annual production of recruits in the past year is about 30% higher than of brokers who left.
Last week, Wells Fargo Advisors recruited brokers from UBS and Merrill Lynch who each had over $2 million in annual production.
Good luck enticing the bottom of the barrel and old washed up hacks who are looking for a plan out. Weak and weaker. Go independent and stop relying on the weak banks. You’re almost as sad as Bank of America advisors…almost.
This should go over well with the loyal FA’s who have stuck with Wells – hey we’re going to cut your comp so we can bring on desperate FA’s looking for a check!
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