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Deals & People March 29, 2009
Wachovia Securities Changes Recruiting Terms
Wachovia Securities has changed its recruiting deal for financial advisers so that it will now base payouts on an adviser’s last three months’ production instead of the traditional 12 months, according to published reports.
Reported by PLANADVISER Staff
The change was made at the company, a unit of Wells Fargo & Co. (see “Wachovia Leaves Citigroup at the Altar’), in order to get a more accurate reading of brokers’ production based on current market conditions, according to Dow Jones.
A report by Registered Rep said Wells Fargo is taking that three-month trailing production figure and multiplying it by four to get revised trailing 12-month number. The report noted that if that revised figure is not 85% of the rep’s actual trailing 12, then the bonus will be based on the revised figure and not the actual trailing 12 but if the revised figure is at least 85% of the actual trailing 12-month production, then the rep gets a “normal’ deal.