Reuters reports that firms like Morgan Stanley have realised they no longer need to depend on poaching employees from rivals to boost revenue, he said, and are focused instead on earning more from a stable roster of existing brokers.
“The amount of recruiting they’re doing from each other is very small, and it’s small for good reason though,” Gorman said on a conference call with analysts to discuss second-quarter results. “We don’t need to recruit a lot of people. We’re growing organically.”
For most of their history, full-service wealth management firms have offered recruiting bonuses to lure away competitors’ best brokers, and by extension, their clients. The number of those firms has dwindled as the industry consolidated, while small independent advisory offices have proliferated.
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