Bank of America’s Merrill Lynch brokerage unit is said to have awarded a possible record-breaking hiring bonus to a team of financial advisers that has some industry experts questioning whether the move will end up costing the firm money in the long run, the FOX Business Network has learned.
Fox Business reports that Merrill Lynch lured the team headed by veteran broker Bruce Munster from Morgan Stanley with a signing bonus that could equal about 400% of the group’s total yearly revenues, according to industry executives with knowledge of the matter. Merrill is said to have structured a deal that could pay the brokers more than $20m to make the move, these people say.
Andrew Parish, chief executive officer and founder of AdvisorHUB, a website that reports on events in the brokerage business including the Merrill signing package, calls the hiring bonus 'very, very close' to the largest ever awarded to a team to jump to a competing firm. He added adding that Merrill is doing the deal in an effort “to land headliners,” or major producers to its wealth management business.
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