Tr?id=566623520170033&ev=PageView&noscript=1

Morgan Stanley's Strategic Shift - Elevating Grid Hurdles, Trimming Compensation for Small Households

Posted on November 2nd, 2023 at 11:29 AM
Morgan Stanley's Strategic Shift - Elevating Grid Hurdles, Trimming Compensation for Small Households

From the desk of Jim Eccleston at Eccleston Law 

Morgan Stanley Wealth Management has informed its approximately 15,000 advisors that, to maintain their current payout in the upcoming year, many will need to increase their revenue, according to a recent article in AdvisorHub.

The 2024 pay plan for the firm will raise the production requirements on advisors' core compensation grid by approximately 10 percent starting in January. Payouts will still vary between 28 percent and 55.5 percent of the fees and commissions generated by brokers, depending on their placement within the 16 revenue bands. AdvisorHub reports that this adjustment for 2024 will impact approximately one-third of the firm's sales force.

Additionally, Morgan Stanley intends to alter its small household policy. The changes include the elimination of payouts for households under $250,000 in assets unless the accounts qualify for a growth exemption. Effective January, brokers will receive no credit for households that do not grow by at least 5 percent and have $25,000 in net new assets or liabilities.

To mitigate the impact of compensation changes, Morgan Stanley will implement a 10 percent increase in brokers' firm-funded Business Plan development expense account budgets.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

I just wanted to say thanks again for preparing and executing my case in such a professional manner. It was a pleasure to watch two professionals take such pride in their work, as well as becoming personally in tune with your client (Me). I would personally recommend you and your firm to anyone.

John O.

LATEST NEWS AND ARTICLES

1782744905 Law
June 29, 2026
Former Arvest Wealth Representative Sanctioned by FINRA Over Improper Use of Mistaken Commission Payment

The Financial Industry Regulatory Authority (FINRA) has suspended former Arvest Wealth representative Brandon Still for 18 months and fined him $5,000 after determining that he improperly used firm funds that were mistakenly deposited into his account.

1782497406 Law
June 26, 2026
FINRA Seeks to Make Remote Inspection Program Permanent

The Financial Industry Regulatory Authority (FINRA) is seeking approval from the Securities and Exchange Commission (SEC) to make its pandemic-era remote inspections program permanent before the current pilot is scheduled to expire in June 2027, according to AdvisorHub and FINRA's summary of its recent Board of Governors meeting.

1782400213 Law
June 25, 2026
SEC Alleges Illinois Investment Adviser Misappropriated Investor Funds and Concealed Losses

According to a litigation release published on SEC.gov, the Securities and Exchange Commission (SEC) has charged John Sterling Myers and his firms, Sterling Capital, LLC and Sterling Capital Management, LLC, with orchestrating a multi-year fraud involving investor funds held in a pooled investment vehicle.