Merrill Lynch / Bank of America Changes Broker Bonus Payments for 2015
From the Desk of Jim Eccleston at Eccleston Law Offices:
Merrill Lynch has told its brokers that they will receive higher bonus payments in 2015 for attracting new clients and assets, but will eliminated pay for servicing clients with less than $250,000 in assets.
Merrill Lynch will pay brokers 0.1% of new assets clients use to obtain loans, banking and trust products, or to put into fee-based advisory accounts. The cash bonus - half paid at year end and half over eight years - doubles the 0.05% paid this year for such "strategic" money.
Brokers attracting over $10 million of such assets receive 0.2% and brokers reaching $50 million receive 0.23%. However, bonuses in 2015 are being halved for new money put into low-profit money-market or bank accounts.
Moreover, Merrill brokers who bring in at least two new eligible households will receive a bonus of 0.15 percent of the new assets next year - triple the 2014 bonus. If they combine two new households with new strategic assets above $10 million, they collect 0.3 percent of the assets.
Brokers' core pay is not changing in 2015. They will receive between 20 percent to 48 percent of the fees and commissions clients pay Merrill, with higher producers earning the higher payouts.
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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