Merrill Lynch last week told managers that it was offering brokers from UBS, Morgan Stanley Smith Barney, Wells Fargo and other firms an upfront cash payment equal to 150 percent of the fees and commissions they generated during the prior 12 months. The offer is limited to advisers whose performance put them in the top 40 percent of their peers, the two sources said.
Merrill previously offered brokers 140 percent up front, according to one recruiter who was briefed on the changes. The higher offer lets Merrill catch up with bonuses offered at rivals UBS and Morgan Stanley, the recruiter said, in a market environment where it difficult to generate growth organically.