MSSB responds to Danny Sarch post on complex managers' comp

Danny Sarch is entitled to pursue his blatant commercial self-interest through his regular attacks on Morgan Stanley Smith Barney, but he is not entitled to make false statements. In addition to inaccurate calculations regarding cash deferrals, his claim that &#8220;nobody ever suggested&#8221; branch manager bonuses &#8220;would be in anything other than cash&#8221; is untrue. <a href=http://www.investmentnews.com/article/20110125/BLOG01/110129981> (Read Mr. Sarch's Jan. 21 posting.)</a>
JAN 28, 2011
By  Mark Bruno
Danny Sarch is entitled to pursue his blatant commercial self-interest through his regular attacks on Morgan Stanley Smith Barney, but he is not entitled to make false statements. In addition to inaccurate calculations regarding cash deferrals, his claim that “nobody ever suggested” branch manager bonuses “would be in anything other than cash” is untrue. (Read Mr. Sarch’s Jan. 21 posting.) In fact, the Branch Manager Compensation Guide addresses this point unambiguously: “A portion of the year-end award will be payable partly in cash and, at the discretion of the Compensation Committee of the Morgan Stanley Board of Directors, partially in the form of long-term incentive compensation such as a restricted stock award.” The handbook further states that these bonuses “…will be consistent with the terms and conditions of the relevant long-term incentive compensation program at the time of the award and will be subject to certain restrictions and cancellation provisions…” While the exact percentages vary and the total compensation construct is never final until approved by the Board, a portion of branch manager compensation has been deferred at both legacy firms for a number of years. James Wiggins Director of Corporate Communications Morgan Stanley Smith Barney

Latest News

No succession plan? No worries. Just practice in place
No succession plan? No worries. Just practice in place

While industry statistics pointing to a succession crisis can cause alarm, advisor-owners should be free to consider a middle path between staying solo and catching the surging wave of M&A.

Research highlights growing need for personalized retirement solutions as investors age
Research highlights growing need for personalized retirement solutions as investors age

New joint research by T. Rowe Price, MIT, and Stanford University finds more diverse asset allocations among older participants.

Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones
Advisor moves: RIA Farther hails Q2 recruiting record, Raymond James nabs $300M team from Edward Jones

With its asset pipeline bursting past $13 billion, Farther is looking to build more momentum with three new managing directors.

Insured Retirement Institute urges Labor Department to retain annuity safe harbor
Insured Retirement Institute urges Labor Department to retain annuity safe harbor

A Department of Labor proposal to scrap a regulatory provision under ERISA could create uncertainty for fiduciaries, the trade association argues.

LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors
LPL Financial sticking to its guns with retaining 90% of Commonwealth's financial advisors

"We continue to feel confident about our ability to capture 90%," LPL CEO Rich Steinmeier told analysts during the firm's 2nd quarter earnings call.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.