Morgan Stanley revamps pay plan

Morgan Stanley is changing its pay plan to reward top producers and up-and-comers.

Morgan Stanley is changing its pay plan to reward top producers and up-and-comers.
The compensation changes, to take effect next year, will also hurt some lower producers.
All $3-million producers and any $1 million-or-higher producer with 20 or more years of service are getting an extra percentage point in payout.
They’ll now get payouts of up to 44% on packaged products and advisory fees.
Brokers with less than six years service, who produce between $150,000 to $300,000, are getting a two- to three-point increase in payout, which now goes as high as 39%.
On the other end of the scale, brokers with eight or more years of service who produce under $200,000 will begin the year at a 20% payout.
These low producers had been getting a 25% payout.
“That’s the noose around the neck,” of lower producers, said one Morgan Stanley broker who asked not to be identified.
Veteran Morgan Stanley reps doing less than $250,000 will get a 25% payout.
Brokers were told of the changes early this month, said Morgan Stanley spokesman James Wiggins.
Dow Jones Newswires first reported the changes earlier this week.