November 19, 2019
Mindy Diamond Quoted
By Jed Horowitz
Morgan Stanley broke with recent big-firm tradition on Tuesday, telling its more than 15,000 advisors that they will have to generate more revenue in 2020 to qualify for the same payout percentages that they are earning this year.
The brokerage giant has modified the “grid” that determines how much advisors retain of the fees and commissions their customers pay, requiring them to produce about 10% more than currently to earn the same payouts, according to people familiar with the 2020 plan.
When told by a reporter that an unnamed wirehouse was imposing a 10% hike on grid qualification, industry recruiter Mindy Diamond said she was not surprised.
“It may seem like a small change,” Diamond said, “but advisors will look at it as another signal that they are valued less and are not in control.”