Wednesday, May 10, 2006

Morgan Stanley Offering 200% of Trailing 12

Morgan Stanley is offering high-producing financial advisors a bonus of up to 200 percent of their trailing twelve if they jump ship from competitors to join the firm. According to the AP, the payment will be made over time, and although the AP didn't mention it, you can be sure the payments will be tied to a promissory note for each payment, which will continually extend the time of forgiveness, and therefore the time of service.

But, for a million dollar producer, a two million dollar "bonus" might not be a bad thing. Just make sure that an attorney reviews the hiring documents BEFORE you resign, and make sure that you understand what you are getting into. Promissory notes, restrictive covenants, and an agreement that your clients become their clients could destroy your book.
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