Merrill Advisers Get Bonus Boost

Wall Street Bull

Bank of America has boosted bonuses for Merrill Lynch financial advisers who steer clients to use more of the bank’s products.

Bloomberg reports that advisers who increase the flow of funds by at least 10 percent will be eligible for so-called strategic-growth awards starting next year, John Thiel, head of U.S. wealth management, and John Hogarty, chief operating officer of the unit, said yesterday in a presentation. An increase of at least $5m to $25m in funds - including deposits, investment services, bank loans, mutual-funds and alternative investments - is needed to qualify for the program, Hogarty said.

'We’re creating significant opportunity for advisers aligned to the strategy and focused on growing their practices', Hogarty said during the presentation.

In the meantime, Reuters reports that Merrill Lynch may be one step closer to ending its battle with former brokers who say the firm denied them deferred compensation when they left after the brokerage was bought by Bank of America.

Merrill Lynch and lawyers for some ex-brokers have agreed to changes in a proposed $40m class action settlement over retention bonuses and other deferred compensation they said was wrongly denied them. The revised settlement may encourage some brokers to drop arbitration and other legal claims against the brokerage, according to court documents.

BofA Gives Advisers New Bonuses Tied to Funds-Growth Targets

Merrill sweetens settlement for ex-brokers in deferred pay cases

 

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