Bloomberg reports that the plan would have reduced the so-called grid payout for Merrill Lynch financial advisers by two percentage points, the person said, requesting anonymity because it wasn’t made public. The changes, which would have affected advisers generating less than $1m in commissions, were seen as a way to cushion the costs of new bonuses, the person said.
Bank of America proceeded with a plan to introduce new awards for advisers who steer clients to use more of the bank’s products. In the month before that incentive was unveiled internally last week, Moynihan decided to overrule John Thiel, head of the Merrill Lynch brokerage, and prevent changes to the grid, the person said.
Moynihan was concerned that the changes would damage Bank of America’s ability to retain employees and lure other firms’ brokers, the person said.
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