As firms are fighting to recruit brokers, and paying 3x trailing 12 to entice brokers to move, one would think the wirehouses would leave compensation levels alone.
The changes might not make a significant difference but for producers below $1.5 million, the grid ranges will increase by $50,000. Reports are that more than half of Merrill brokers produce less than a million, so while the impact might be small, the number of brokers affected is significant.
UBS is recruiting like crazy. Maybe we will see an increase in compensation in response to Merrill's new move?
Merrill Raises the Bar on Broker Pay