Bonus Watch Q4 ’14 (and ’15): Brokerages

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You gotta spend money to, well, you know the rest. And so, apparently, do James Gorman, Brian Moynihan and John Stumpf.

Brokerage firms have turned their attention toward pay incentives and awards to pad out an adviser’s compensation and improve the chances that they will stay at the firm, while also directing them to work toward management’s goals….

The downside to this spending is lower profit margins, such as those suffered by Morgan Stanley and Merrill Lynch in the fourth quarter.

Big Brokerages Spend More on Bonuses [WSJ]

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