From the Headhunter

May 10, 2012, 2:22 PM EST

New wirehouse math: Inside the numbers

By Danny Sarch

Let's say you're running your own sales force. You have a certain number of salespeople and a certain amount of revenue. How do you compute the average per salesperson? Well (and I was an English Major), the answer is simple division, right? In the headhunting world, regardless of industry, it's called a “per desk” average. If you have a recruiting firm with 10 desks, and you are doing $2 million in revenue, then your per desk average is $200,000. The Big Brokerage business, however, likes to report its own numbers which mysteriously favor whatever statistic that they are comparing. When reporting the total number of sales people, the Big Brokerage firms count EVERYONE, including rookies as well as other registered personnel. Yet, when they report an average production figure, that number excludes trainees, and the other registered personnel. And the definition of trainee is often extended to a three year Adviser. ... Read full post

February 9, 2012, 12:07 PM EST

Does corporate loyalty still exist among advisers?

By Danny Sarch

So the Giants won the Super Bowl. Again. And it got me thinking about the nature of loyalty. Unfortunately for me, I'm a Jets and Mets fan. So while a good portion of the New York area has celebrated multiple championships over the last years, I'm stuck with my Mets memories from 1986 and 1969. I wish I could change my loyalties and enjoy the Giants' triumphs. But I can't. Jerry Seinfeld has a routine where he points out the lack of logic inherent in being a fan. He comments that being a fan is like “rooting for laundry” because we root for different players as long as they happen to wear the right color jersey.In the wealth management industry, I run into the occasional adviser who professes to be loyal to his company. That fascinates me. Now, I appreciate loyalty ... to people. It's one of the nicer qualities about human beings. In the corporate world, loyalty is earned based upon mutual respect. It's based... Read full post

January 11, 2012, 4:27 PM EST

Why Merrill Lynch's small-account penalty is a big mistake

By Danny Sarch

Over the years, one of the typical complaints of wirehouse advisers is that senior management in the “ivory tower” does not understand how business is done in the field. For example, when I talk with a long time Merrill Adviser, he or she will get a whimsical look in the eye when they talk of the pre-Stan O'Neal days, when David Komansky (ex Adviser) ran the firm.Of course, now Merrill is run by Bank of America executives who were never Advisers. And Morgan Stanley Smith Barney is run by James Gorman and Andy Saperstein, who also never were Advisers. Why is this important? It is important because they institute policies designed to save their companies money while not understanding how business is done in the field.Merrill now penalizes Advisers for opening up accounts less than $250,000. The payout is lower. Of course, any Adviser wants to open up a bigger account. More money under management equals bigger fees and... Read full post

December 22, 2011, 11:49 AM EST

A holiday poem — from a headhunter?

By Danny Sarch

Twas the week after Christmas, with most of Wall Street away – Except perhaps Regions bank – Who is buying Morgan Keegan today?Employees hope their evaluations are fairWishing that their bonuses, come February, are still there.Branch Managers relax, because end of year movement has stopped.But watch out for the long weekends ahead, many offices will pop.With some bonuses forgiven, and loyalty largely gone, Advisers are not happy, but hardly forlorn.Because even with brands beaten up and stock prices low, Opportunities abound, many have an “up front” type of glow.Go indy, go regional, breakaway or stay large, It's clear more than ever that big producers are in charge.Layoffs are still common and quarterly results still driveSenior management decisions: “I need to keep MY job alive!”Every year's a new scandal, what will it be in the new year?Which firms will thrive and which will disappear?With stock... Read full post

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