A.G. Edwards reps await retention package

Wachovia Corp. of Charlotte, N.C. is putting the finishing touches on its retention package for brokers with A.G. Edwards Inc. of St. Louis, and the details could be announced as early as next week. Wachovia did not release any of the particulars of the retention package, but some potential details were widely discussed by A.G. Edwards 6,600 reps and recruiters at competing firms who are talking to those reps. According to two industry recruiters, one scenario could hurt small producers, with reps producing less than $350,000 in fees and commissions getting no bonus, and bigger producers in the range of $800,000 to $1 million, getting a bonus of 100%. Another potential retention bonus could have brokers receiving 40% of their fees and commissions, one recruiter said. “The package is in draft form, said Wachovia spokesman Tony Matera. I wouldn’t comment on what people are guessing. The facts will be disclosed next week,” he said today. The new broker-dealer, called Wachovia Securities and based in St. Louis, will be a behemoth, second in size only to Merrill Lynch & Co. Inc. with more than 15,000 reps and advisers operating through a variety of business channels. Wachovia has set aside more than $1 billion for broker retention over the next six years. For the full report, see the upcoming June 11 issue of InvestmentNews.