Morgan Stanley and Citigroup, which are attempting to set up the biggest US brokerage firm, are planning to pay brokers nearly $3 billion (€2.3 billion) to prevent them from being poached away from the joint venture, sources said, according to The Wall Street Journal.
Morgan Stanley, whose management will run the joint venture, is weighing offering retention payments to top-producing brokers who are joining the firm’s new wealth-management tie-up with Citigroup’s Smith Barney division.
The payments range from 50% to nearly 260% of a broker’s annual production, which can exceed $10 million depending on the size of the individual broker’s business, the WSJ report said.
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