- On April 3, 2017
- Going independent or to a corporate branch office at a competitor firm will dictate deferred comp replacement options but there is no industry standard.
- Deferred comp replacement is a grey area and available options vary widely by the firm.
- Some receiving firms may account for your loss by offering restricted stock with a similar vesting schedule as your current firm is offering.
- Other firms may add to your grid for a period of time and some will make the full or partial amount part of your transitional bonus package.
- For broker dealers offering transition packages on the high side of industry averages, the deferred comp is usually considered baked into the deal.
- If moving to another corporate branch option and even a few of the aggressive independent broker dealers, recruiting transitional compensation dwarfs the deferred compensation you leave behind.
- Many advisors feel that the transitional compensation pays you for the initial loss of revenue during the first transition months and the aggravation transitioning clients. That’s true, but the package also includes a major investment in your practice.
- If the total dollars are there don’t get fixated on replacing deferred comp with only deferred comp.
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