From the Desk of Jim Eccleston at Eccleston Law LLC :
Wells Fargo has marketed a recruitment deal to financial advisors which consists of an upfront cash payment between 125% and 150%. Additionally, the hurdles in order to meet back-end production goals under the deal are:
- High Performance
- Premier Advisor Status
- Client Experience
- Full best practices adoption
- Envision 80% average
- Advisory – 60% Advisory AUM or 80% Advisory Revenue
- Lending – $6,000 lending credits (or $8,000 lending credits for 2016 retro award)
- Delta Graduate
- Growth
- 15% revenue growth or $150,000 revenue growth
All proposed deals are negotiable and reflected in numerous agreements such as promissory note and employment agreements. Reps should retain qualified legal counsel to review those documents in advance of committing to transition to a new firm.
