Morgan Stanley, which has about 16,000 financial advisers, is giving its brokers an unusual pay incentive over the next two years to win more assets from clients held outside the firm.
According to the to the firm’s 2014 compensation plan, it will pay incentives for brokers servicing households that keep less than US$100,000 at the firm only if the assets of such clients be listed in a Morgan Stanley investment monitoring website called OneView, for brokers and clients.
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In addition, small households with combined Morgan Stanley and OneView assets of US$250,000 or greater will be exempted from the Small Household policy for up to two years.
Morgan Stanley will give reduced payouts to experienced brokers who generate less than US$300,000 in fees and commissions.
In response to the new plan, Morgan Stanley said many brokers have complained that the small-household restrictions cut them off from clients who have growth potential.
In 2014, Morgan Stanley is offering an incentive for advisers whose clients do more borrowing with the company. The maximum potential award for advisers in this program rises to US$202,500 in 2014, compared with US$127,500 this year.
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By GlobalDataThe firm has introduced a new award last year, which ranges from US$20,000 to US$300,000 to any broker whose revenue from client fees and commissions beats their 2013 total by US$300,000. This award was available only to the top 40% of brokers as measured by the revenue they generate.
Those who produce less than US$2.5 million of revenue will have to increase their output by 10% to get the same payout as in 2013.
As part of the Morgan Stanley’s 2014 pay scheme, Brokers with nine or more years of experience who bring in less than US$300,000 continue to get only a 20% payout.
Additionally, the firm has 10 different percentage payout levels, ranging from 28% to 47% for stars who produce US$5 million or more.
