Merrill Lynch Announces 2023 Changes To Compensation Plan

November 18th, 2022, 11:20 AM

Merrill Lynch has decided to break from tradition and raise production and growth hurdles for advisors while decreasing brokerage transactions pay.

According to AdvisorHub, Merrill 2023 will require advisors near the threshold to produce more to maintain their same payout. For example, a $1 million producer will have to generate $1.05 million next year to maintain the same 41 percent cash payout.

Merrill will also increase a net new household threshold on the advisor's growth grid and reinstate a pre-pandemic requirement of at least four new households to avoid a 100 basis-point cut to payout.

Beginning in March 2021, Merrill will decrease the credit advisors can earn on various brokerage transactions. Such transactions will include equities and fixed income. Merrill told its advisors that the cuts could range from 5 to 25 percent deduction depending on the portion of client assets in brokerage accounts.

On the other hand, Merrill intends to significantly increase the pool of advisors eligible for its top-shelf succession plan. Advisors with $2.5 million in production will be eligible to participate in the plan and will be permitted to semi-retire, transitioning to an inheriting advisor a portion of their books.

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

Return to All

Blog

Merrill Lynch Announces 2023 Changes To Compensation Plan

November 18th, 2022, 11:20 AM

Merrill Lynch has decided to break from tradition and raise production and growth hurdles for advisors while decreasing brokerage transactions pay.

According to AdvisorHub, Merrill 2023 will require advisors near the threshold to produce more to maintain their same payout. For example, a $1 million producer will have to generate $1.05 million next year to maintain the same 41 percent cash payout.

Merrill will also increase a net new household threshold on the advisor's growth grid and reinstate a pre-pandemic requirement of at least four new households to avoid a 100 basis-point cut to payout.

Beginning in March 2021, Merrill will decrease the credit advisors can earn on various brokerage transactions. Such transactions will include equities and fixed income. Merrill told its advisors that the cuts could range from 5 to 25 percent deduction depending on the portion of client assets in brokerage accounts.

On the other hand, Merrill intends to significantly increase the pool of advisors eligible for its top-shelf succession plan. Advisors with $2.5 million in production will be eligible to participate in the plan and will be permitted to semi-retire, transitioning to an inheriting advisor a portion of their books.

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

Return to All