Mindy Diamond Quoted
Industry experts are divided on the impact of this shift on advisor retention and recruiting
Morgan Stanley is moving to defer more compensation for its advisors in 2015. But just how financial advisors will react to the shift is debatable, experts say.
With the changes, Morgan Stanley’s 16,162 advisors could see 1.5% to 15.5% of their total bonuses paid in cash and stock deferred in 2015 as part of the wirehouse’s unified pay grid. This shift entails an average shift of about 2 percentage points in deferred comp next year vs. this year, according to the company.
Morgan Stanley’s move seems aimed at retaining advisors, simplifying the firm’s compensation plans and even saving it some money, industry observers say.
“What I know overall is that this is a very modest change to a bonus,” explained recruiter Mindy Diamond of Diamond Associates in Chester, New Jersey, in an interview with ThinkAdvisor.