Research Roundup: U.S. Trust's New Retention "Hardball" Garners Plenty Of Headlines Hot
Forbes describes the policy, which forces advisors who resign to cool their heels on "garden leave" for 60 days before they can officially join a new firm, as "hardball."
The article highlights the fact that U.S. Trust never created a "broker protocol" and so the alternative is messy temporary restraining orders.
In addition, the target here is seen as Citigroup splinter firm Dynasty Financial Partners, which has absorbed $5.9 billion in U.S. Trust AUM.
Bloomberg provides context on just how high recruiting bonuses are these days -- as much as 3.5 years' production -- but fails to address the question of how 60 days on reduced pay and another 6 months' moratorium on prospecting former clients can overturn that kind of incentive for jumping ship.
In this light, it's likely that BofA is aiming not so much at its own reps but at the rival firms trying to poach its talent.
Reuters notes reports that U.S. Trust personnel may be disgruntled at having to compete with fellow BofA brokers at Merrill Lynch.
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