Current Morgan Stanley Recruitment Deal
From the Desk of Jim Eccleston at Eccleston Law LLC:
Morgan Stanley has marketed a recruitment deal to financial advisors which consists of an upfront cash payment between 100% and 175% with a 9 year term in place. The hurdles in order to meet back-end production goals under the deal are:
YEAR 1: HURDLE – 70% OF ASSETS AND 70% OF PRODUCTION
Payout bonus: 20% on production and 20% on Asset Bonus (Both or either one can be earned)
(T12 based on the 12 best months in the first 14 months)
YEAR 2: HURDLE – 85% OF ASSETS AND 85% OF PRODUCTION
Payout bonus: 20% on production and 15% on assets
YEAR 3: HURDLE – 100% OF ASSETS AND PRODUCTION
Payout bonus: 20% on production and 15% on assets
YEAR 4: HURDLE – 125% OF ASSETS AND PRODUCTION
Payout bonus: 25% of production and 15% on assets
YEAR 5: HURDLE – 150% OF ASSETS AND PRODUCTION
Payout bonus: 25% of production and 15% on assets
All proposed deals are negotiable and reflected in numerous agreements such as promissory note and employment agreements. Reps should retain qualified legal counsel to review those documents.
The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of securities for financial advisors including broker litigation & arbitration, transition contract review, employment matters, FINRA defense , and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.
Related Attorneys: James J. Eccleston
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