upfront cash payment

Jan

2017

Current LPL Financial Recruitment Deal

From the Desk of Jim Eccleston at Eccleston Law LLC:

LPL Financial has marketed a recruitment deal to financial advisors which consists of an upfront cash payment between 10% to 55%. Additionally, the hurdle in order to meet back-end production goals under the deal is:

· Year 1: Hurdle – 50% of assets and revenue Payout bonus: 5% to 40% of 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.

Jan

2017

Current JP Morgan Recruitment Deal

From the Desk of Jim Eccleston at Eccleston Law LLC:

JP Morgan has marketed a recruitment deal to financial advisors which consists of an upfront cash payment between 125% to 150%. Additionally, the hurdles in order to meet back-end production goals under the deal are:

· Year 2: Hurdle – 75% of assets and revenue

Payout bonus: 25% of production (15% cash, 10% J.P. Morgan equity)

· Year 3: Hurdle – 100% of assets and revenue

Payout bonus: 25% of production (15% cash, 10% J.P. Morgan equity)

Jan

2017

Current Hightower Advisors Recruitment Deal

From the Desk of Jim Eccleston at Eccleston Law LLC:

Hightower Advisors has marketed a recruitment deal to financial advisors which consists of an upfront cash payment between 90% to 120% and Hightower equity: 80% to 100% of production (in private equity).

Jan

2017

Current Commonwealth Recruitment Deal

From the Desk of Jim Eccleston at Eccleston Law LLC :

Commonwealth Financial Network has marketed a recruitment deal to financial advisors which consists of an upfront cash payment between 25% to 50%. Additionally, the hurdle in order to meet back-end production goals under the deal is:

· Year 1: Hurdle – 50% of assets and revenue Payout bonus: 5% to 40% of production

· Year 2: Hurdle – 75% of assets and revenue

· Year 3: Hurdle – 100% of assets and revenue

· Year 1: Hurdle – 50% of assets and revenue Payout bonus: 10% to 40% of production