Current Janney Recruitment Deal

From the Desk of Jim Eccleston at Eccleston Law LLCcomputer-office-1209640_1280

Janney has marketed a recruitment deal to financial advisors which consists of an upfront cash payment between 115% to 155%. Additionally, the hurdles in order to meet back-end production goals under the deal are:

  • 1st Back-End Bonus (production based): Awarded if 75% of T12 is achieved (best 12 of 1st 14 months). Payout bonus: 5% of best 12 of 1st 14 months.
  • 2nd Back-End Bonus (asset based): Awarded if 75% of hired AUM is networked by month 14. Payout bonus: 5% of hired T12.
  • 3rd Back-End Bonus (months 15 – 26; asset & production based): Awarded if 100% of hired T12 is achieved (months 15 – 26) AND 100% of hired AUM is networked by      month 26. Payout bonus: 15% of month’s 15 – 26 production.
  • 4th Back-End Bonus (months 27-38; production based) / (asset based): Awarded if 110% of hired T12 is achieved for months 27 -38. Payout bonus: 15% of month’s 27 -38 production.
  • 5th Back-End Bonus (months 39-50; production based): Awarded if 125% of hired T12 is achieved for months 39-50. Payout bonus: 25% of month’s 39-50 production.

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.

 

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