What’s gone up is now coming down — at least when it comes to some cash payouts at Merrill Lynch.
Merrill brokers will see cash compensation drop and deferred compensation rise.
“In an effort to allow financial advisors to participate as a shareholder in the growth of the business, we will be shifting 1 percent of their annual computed cash compensation to a deferred award equal to 1.5 percent of the cash value,” says Merrill Lynch spokesperson Erik Henderson. “Our compensation plan continues to be very competitive with the industry… and provide[s] one of the best opportunities for financial advisors to create personal wealth.”
But brokers like immediate income, says Carri Degenhardt-Burke of Degenhardt Consulting. “Taking money out of their pocket can be a huge detriment and can add up to be a lot, especially for $1 million producers,” Degenhardt-Burke explains.