Merrill Lynch may be gloating about increased production across its broker ranks this holiday season, but that may not be because of the reasons you may think. A shrinking ‘real world’ headcount, increased incentives to add HNW households and a rapidly inflating stock market have worked to offset massive recruiting losses across the country.
Merrill has been crippled, in particular, in Texas. And that continued a couple of weeks ago.
“Jeff Dinkins, Andrew McGrath, Jason Jaynes, Peter Ianace and Brad Huff—who sources said had produced more than $4.5 million in the previous 12 months on $850 million of customer assets—made the move with three client associates, a Wells Fargo spokeswoman confirmed. Dinkins said in a social media message that he could not immediately comment.”
“Merrill Wealth Management President Andy Sieg has laid out a strategy of growth without recruiting by implementing a grid supplement that awards extra payout points to brokers who grow their annual assets through new accounts and deducts points for asset contraction. Merrill will offset departures like those of Dinkins’ “Wilshire Wealth Management” group through an in-house farm system that includes advisors trained at Bank of America’s Merrill Edge discount broker and in-house training programs.”
‘Growth without recruiting’ by adding 26-year-old Merrill Edge advisors to former 30-year veteran chairs is the most Bank of America thing ever. And this guy has to actually say this stuff out loud. Lol.
Besides these defections to Wells Fargo, Stifel and others continue to absolutely feast on Merrill advisors in every corner of the country.
“While advisors have left across the country, Merrill has experienced a heavy outflow of brokers and managers in Texas, including the departure of Dallas complex manager Michael Armondo in May to Rockefeller Capital Management, of Houston-area complex manager Jeremy Silvas in September to Raymond James Financial and of two $3-million advisory teams near Houston in August to Wells Fargo and to Stifel, Nicolaus.”
“Stifel also opened a new office in Frisco on Thanksgiving week with a Merrill emigrant.“
This article could literally write itself every week in 2019. We expect that to continue in 2020.