FOX Business Network’s (FBN) Senior Correspondent Charlie Gasparino reports Bank of America’s Merrill Lynch Brokerage unit has, “awarded a possible record-breaking hiring bonus,” to lure former Morgan Stanley broker Bruce Munster and team to the firm. Gasparino continues, the “signing bonus could equal about 400% of the group’s total yearly revenues,” and, “Merrill is said to have structured a deal that could pay the brokers more than $20 million to make the move.”
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On Bank Of America Merrill Lynch’s record-breaking hiring bonus:
“Bank of America’s Merrill Lynch brokerage unit is said to have awarded a possible record-breaking hiring bonus to a team of financial advisers that has some industry experts questioning whether the move will end up costing the firm money in the long run. Merrill Lynch lured the Los Angeles-based team headed by veteran broker Bruce Munster from Morgan Stanley with a signing bonus that could equal about 400% of the group’s total yearly revenues, according to industry executives with knowledge of the matter. Merrill is said to have structured a deal that could pay the brokers more than $20 million to make the move, these people say.”
On the signing package being financially risky:
“The deal, according to people who have been briefed on the terms, will be paid to the team over a number of years, so in order for Munster and his group to recoup the full amount, they would have to remain at the firm as much as nine years. The team also must meet certain benchmarks in order to collect the full amount they are owed, these people say. Still, people say the package offered to Munster and his team is financially risky for Merrill.”