Merrill Lynch is fine-tuning a new enhanced pay grid that motivates financial advisors to serve high-net-worth clients, work in teams, and hit other goals. The new enhanced pay grid would become effective next year.
“Under the enhanced grid proposal, advisors would become eligible for extra pay if they hit four out of five measurable targets. One is to have a book with at least 80 % of the clients qualifying as “affluent,” which Merrill defines as households with assets of $ 250,000 or greater. Another goal is having no more than 150 households in the book of business,” according to Kathleen Laverty of FundFire.
Other targets in the plan include having 35% of client assets in fee based accounts, and to maintain a client retention rate of at least 98 %, and tapping into a certain level of other products and services which may include, retirement planning, and loans. Advisors will be recognized for having professional designations such as CFP, Certified Financial Planner.