Wells Fargo Considers Changes in Its Profit Formula Division

Posted on January 15th, 2016 at 8:41 AM
Wells Fargo Considers Changes in Its Profit Formula Division

From the Desk of Jim Eccleston at Eccleston Law LLC:

The Profit Formula division of Wells Fargo has been around for decades and became a part of Wells Fargo as a part of its acquisition of Wachovia in 2008. The advisors in the program receive payouts of about 75%, far beyond payouts of other branch brokers, but like most independent brokers they are responsible for much of their overhead and other expenses. Recently the division stopped recruiting new advisors after competing poorly with another Wells Fargo division FiNet.

Recent reports from FundFire show that new policies within Profit Formula may lead to the revival of the program. Most importantly Profit Formula is penalizing teams who produce less than $2 million in revenue. The teams 75% payout could be cut by 1.5% to 3% depending on how far short they fall of the $2 million mark. Wells Fargo executives have indicated that this performance penalty system may lead the division to a more favorable position in the bank.

Many also believe the Profit Formula division is very attractive to advisors who would be better off even if operating below the $2 million quota. The recruiting benefits alone could lead Wells Fargo to make some changes in 2016. 

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. 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

Tags: Eccleston, Eccleston Law, Eccleston Law LLC, James Eccleston, Wells Fargo, FundFire, FiNet

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