![A Wells Fargo branch in New York. (Photo: Bloomberg)](https://images.thinkadvisor.com/contrib/content/uploads/sites/415/2019/01/Wells_Fargo_Branch_NY_BB_MI-1.jpg)
To improve retention and recruiting efforts, Wells Fargo is rolling out a succession program that can bring retiring advisors as much as 225% of their trailing 12-month fees and commissions to be paid for over a 10-year period — or earlier if they chose to take payments via a loan.
The program includes a new retirement loyalty award representing 25% of the retiring rep’s yearly production.
Advisors taking on the retirees’ client base will eligible for a new book acquisition award of up to 100% of the retiree’s trailing 12-month fees and commissions.
“This program is a category killer in the space. It’s about investing 100% in the next generation to take on more clients,” said John Alexander, head of advisor-led business for Wells Fargo. “No one else is doing this.”
Starting April 1, the Summit Program will be available to employee advisors in the Private Client Group and Wealth Brokerage Services (which are being merged), but not those in the Financial Network, or FiNet program for independent advisors, or the bank’s new affiliation program for RIAs.
Recruiting, Retention Woes
When asked if the program is aimed more at retention or recruiting, Alexander said it is “attractive to all our advisors and to those who are the best in the business who are not yet here.”
In light of negative headlines its parent company continues to make, Wells Fargo Advisors could use a boost. The group had 13,968 advisors, down nearly 600 from a year ago and about 100 from the prior quarter, as of Dec. 31, 2018.