Leaders at Ameriprise Financial and Raymond James Financial have sounded the alarm over what they describe as "irrational" recruiting packages being offered in the wealth management industry. According to AdvisorHub, both firms acknowledge the pressure to remain competitive amid escalating offers but warned that some deals simply do not make economic sense.

During Ameriprise's second-quarter earnings call, CEO James Cracchiolo admitted that, while the firm had to raise its offers "a bit" to keep pace, he criticized some rival deals as "a little irrational," pointing out that a few advisors left after receiving "some big checks."

AdvisorHub also reports that Raymond James CFO and CEO-elect Paul Shoukry echoed those concerns during his firm's earnings call. He pointed to a recruiting pipeline growing at a pace not seen since the financial crisis. Still, he acknowledged that private equity-backed firms are driving competition by offering aggressive payouts.

According to AdvisorHub, Shoukry observed that some of the most aggressive players have started to pull back as valuations rise to unsustainable levels. Nevertheless, he acknowledged that a few firms remain highly disruptive, particularly in the independent channel.

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.