Wachovia’s Banking Unit Has New Deal for Reps
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Wachovia Securities, which offers reps several different affiliation
levels, has predictably come up with a recruiting deal that has several
different plans reps can choose from. This particular deal is only for
those reps applying to work in the bank branches, and not for the
regular brokerage branches.
Like others firms who are trying to attract talented reps into their
branches (Bank of America and Wells Fargo Securities), Wachovia is
offering up-front money—something banks have been doing with
greater frequency as they attack the securities market. However, the
bonuses offered in a couple of instances—which pay out over
five-years—are constructed as forgivable five-year loans, meaning
a broker can be tied up for as much at 10 years.
The deal, according to several sources, is generally for
representatives with about $300,000 in annual production. The most
lucrative deal from an upfront perspective offers a 50 percent bonus of
trailing 12-month production at the front, which is forgivable over the
following five years.
The second type of deal has a smaller upfront bonus: 25 percent
upfront, with a 10 percent bonus based on the trailing 12 production of
the rep for the next five years. Each of those 10 percent bonuses is
constructed as a five-year forgivable loan, according to recruiting
sources. Meanwhile, the final type of this recruiting offer has no
upfront money—but instead offers 20 percent bonuses for five
years.
Reps between $250,000 and $300,000 in annual production are also
eligible for bonuses, but at a reduced rate.
Recruiters say the deals, as well as those offered by other banks, are
evidence that the bank brokerages are getting more aggressive with
their recruiting efforts. However, with the exception of Salomon Smith
Barney, which is owned by Citigroup, Wachovia Securities is the only
one with a sales force of any size that rivals the New York-based
wirehouses. The firm currently has about 8,000 brokers, although that
includes Series 6 licensed reps.
"The truth is the banks, in the past, had always felt value-added for
the bank broker was the ability to tap into bank clients," says one
industry recruiter. "But with Wells Fargo and Bank of America doing
this for a while, Wachovia felt it had to step up to the plate."
Wachovia officials were not available for comment.
