Mindy Diamond Quoted
By Michael Wursthorn
Merrill Lynch will temporarily stop paying top dollar to recruit experienced brokers, according to a person familiar with the matter, the latest brokerage to make changes to how it compensates brokers poached from rivals.
“For a long time all the [brokerages] felt the price of recruiting had gotten out of hand,” said Mindy Diamond, president and founder of Diamond Consultants, a Morristown, N. J.-based recruiting firm for financial advisers that does some business with Merrill. “It remains to be seen if it’s a sound strategy.”
Ms. Diamond said the move will likely make it harder for brokers who generate $1 million to $2 million in fees and commissions annually to move their businesses to Merrill. Brokers or teams that generate more revenue will likely be able to take advantage of Merrill’s revamped recruitment offer, she said.