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7 things to know about retention bonuses and why the post-check ether may be wearing off

Brokers who got checks report higher satisfaction but many still have their eyes on the exits

Author Brooke Southall June 9, 2010 at 6:37 AM
4 Comments
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Jeff Spears: Some people needed it and spent it and will never be able to leave but I truly believe a high percentage are responsible and disciplined.

Jeff Spears


Jeff Speras

Jeff Speras

June 9, 2010 — 1:15 PM

I talked to a broker who had received a retention bonus yesterday and he told me he invested the bonus near the market lows of 2008/09 and now is in a place to pay back the retention bonus and keep the portfolio profits!

Ron Edde

Ron Edde

June 9, 2010 — 3:17 PM

A surprising number of brokers mistakenly view retention bonuses as irrevocable contracts with no escape hatch. The fact is that any broker who accepted a retention bonus can leave at ANY time, as long as the any balance due on the advanced funds is repaid. That can be accomplished either by the advisor returning a portion of the advance that they did not unwisely spend, using some of the transfer bonus paid to them by a new firm, or a combination of the two. This is not to say that every advisor should head for the exits just because they can, but if a compelling opportunity is beckoning from a different firm it can (and probably should be) explored.

Tuan Nguyen

Tuan Nguyen

April 25, 2012 — 7:58 PM

Retention checks can be paid by venturing into your own practice as an RIA. Sometimes the numbers make sense and brokers can recoupe in a few years after that it’s all profit.

Brooke Southall

Brooke Southall

April 25, 2012 — 8:02 PM

Well put — the difference between receiving a bouquet of flowers and planting a garden of perennials.


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