Morgan Stanley Bribes Brokers To Stay

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Five nights a week, courtesy of CEO John Mack (he works hard for the money). Additionally, the firm's 8,500 brokers will be offered another form of liquidity to kick off 2009.

The "upfront liquidity award," as Morgan Stanley calls the bonus, will give the firm's brokers an extra 3.5% to 6% of their annual production in January.
Some people at the firm are referring to this liquidity award as a "stay bonus," similar to what brokers are offered when their firm is acquired by another. However, in acquisitions the stay bonus can be 100% or more of production for top brokers; the January bonus is far less.
A Morgan Stanley spokesman said the award is not intended to be a stay bonus.
Brokers who bring in at least $500,000 in commissions and fees annually and have been with the firm for at least five years will receive the award. The higher the production, the higher the percentage the broker receives.
The idea is that as fees and commissions decline in the bad market, brokers need the extra money now.
[...]
Several recruiters said Morgan Stanley brokers had been asking for some sort of bonus to stay with the firm since signing bonuses to move are so high, often reaching 200% of production.

The firm is [also] throwing in an end-of-year bonus for brokers who have been with the firm for at least five years and produce at least $400,000 annually.
Brokers who have been at Morgan Stanley less than five years only have to produce $200,000 or more to receive to this year-end bonus.
It technically ranges from 4.25% to 8%, but any liquidity award received at the start of the year will be subtracted from the year-end bonus.
Morgan Stanley is also offering a bonus of up to $300,000 for brokers who bring in a lot of new assets.

Morgan Stanley Offers Brokers Upfront 'Award' [CNN Money]

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