Broker-Dealer Firms New Payment Strategy

Posted on July 18th, 2014 at 9:00 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

According to a report from Mark Elzweig Company, the new trend in the broker-dealer industry is that some boutiques and regional firms have improved their upfront deals to compete better with the wirehouses.




Total Package

Length of Contract






9-10 years


High End Boutiques



125% to 225%

9   years




100% to 150%

120% to 270% packages

7-9 years





120% or more for special situations  

3-8 years


Wirehouses: Advisors with production under $350,000 will continue to be afflicted by payout cuts and assorted humiliations until they get the message and leave. At most wirehouses, the welcome mat comes out at $500,000 in gross production.

High End Boutiques: They typically hire producers doing $1 million plus or those on the fast track to get there.Both fee based and transactional business are acceptable.

Regional Firms: The $300,000-plus producer will find a comfortable home here. Packages have ratcheted up in the past two years enabling regionals to successfully hire many big producers.

Independents:  Major household name independent firms pay 10% to 60% upfront and may offer working capital loans and back end bonuses to enhance their packages.  Smaller independents typically pay 10 % upfront bonuses and offer 10% working capital loans. 

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston


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