Merrill Lynch plans to launch new incentives in its succession-planning program starting in late 2021. Some features, the firm says, are not being offered by other wirehouses.
“We want all of our advisors to start here, build their client base here, and retire from here,” said Andy Sieg, head of wealth management, in a memo to staff on Wednesday.
The moves are part of the firm’s broader strategy in which it is moving away from recruiting veteran advisors and investing more in existing ones.
The Client Transition Program, first rolled out in 2006, will have higher award percentage payouts — ranging from 5 to 75 percentage points greater than today — and thus will represent payouts of roughly 160 to 275%.
These CTP payouts are tied to an advisor’s trailing 12-month fees and commissions, multiplied by a CTP award percentage (tied to production, length of service and the portion of their fee-based business).
The wirehouse is also restoring a fixed payout for so-called “active senior consultants,” which Sieg says is “the only transition program in the industry” to do so.