The question for financial advisors is: What role should – or shouldn't — retention payments play in determining the next career move? The answer, as it has always been, is not much.
Some Wall Street brokerages are offering "retention awards" to financial advisors they hope to keep on board as they merge with competitors and form joint ventures. The offers are meant to compensate valued advisors for the inevitable disruptions during the combination of platforms, branches, and operations.
As politically unpopular as these offers may be, firms fear losing key financial advisors even more than the wrath of Sen. Chuck Grassley, who recommended suicide to AIG bonus recipients. Despite the turmoil on Wall Street, retail advisors remain mini-profit centers and have many more employment options than virtually any other financial professional.
The question for financial advisors is: What role should – or shouldn't — retention payments play in determining the next career move? The answer, as it has always been, is not much.
Even before the economic crisis, relatively few advisors moved simply for a big payday, although that certainly did happen in some cases. But, truth be told, more basic principles of business planning have governed and will continue to govern how, when and if an advisor should switch firms.
More than ever, advisors need to determine if their current firms provide the best environment to service clients and expand their businesses. Specifically, they need to be confident that the firm's platform will continue to meet client needs and that management can instill confidence in the strategic direction of the firm.
