During the second quarter of 2007, Raymond James Private Client Group recruited 71 new financial advisors, with 40 joining its employee channel — Raymond James & Associates — from 18 firms, such as A.G. Edwards, Smith Barney and Merrill Lynch. The FAs had average trailing 12-month production of more than $530,000, topping last year’s average of $500,000.
Jim McLean and Raymond Labuda, for instance, left Janney Montgomery Scott. Their practice in Allentown, Pa., which includes their daughters, had a combined trailing 12-month production of $1.5 million and client assets in excess of $210 million.
Incentives for Independents
Raymond James recently announced a new wealth accumulation program for its independent FAs affiliated with RJFS. The 2007-2008 program aims to provide 401(k)-like diversification and growth as a reward to top producers via deferred-cash bonuses and stock options.
o An initial bonus qualifying level of $450,000 in annual production, resulting in a $4,500 bonus;
o Incremental bonuses at 1% above $450,000, then 2% at $750,000, 3% at $1 million and so on — up to 10% over $3.5 million;
o At the highest levels, an ability to earn a 100% payout on many products; including stock options, payouts could exceed 100% at $3.5 million and up;
o Bonuses will be calculated at fiscal-year end and put into an account with a wide choice of mutual funds as investments;
o Each bonus will be vested after 5 years;
o After the vesting period, a check in the amount of the bonus investment plus its growth will be sent to FAs;