Wells Fargo to add 1,400 reps this year, report says

Wells Fargo Advisors LLC chief executive Danny Ludeman told Dow Jones today that he expects to hire more than 1,400 brokers this year. He said about 1,000 would be veteran reps recruited from other firms, and another 400 would be trained. Wells Fargo added 1,700 producers last year, 400 of whom were trainees, the newswire reported. Although that sounds like a big goal, the number is "unimpressive," said Danny Sarch, founder of Leitner Sarch Consultants Ltd., a recruiting firm. Firms normally lose 5% or more from their ranks simply by people leaving the business, dying or from disability, Mr. Sarch said in an interview with InvestmentNews. "Plus, they might lose another 5% to competitors, so they normally have 10% attrition," Mr. Sarch said. For a firm like Wells Fargo, "they've got to hire 1,500 just to stay even," he said. Wells Fargo spokeswoman Teresa Doughety confirmed the hiring plans, but declined to comment about the number needed to maintain the firm's current broker force at 15,000. "We believe quality of FAs and growth in assets are key, not sheer headcount for its own sake," she said.