To retain top brokers, Morgan Stanley (MS) and Citigroup (C) have agreed to set aside $3 billion in bonus cash for their combined brokerage JV.
New York Post: The planned retention bonuses would be paid out over a nine-year period. The bulk of the loot would go to brokers at Smith Barney, whose roughly 19,000-person army is expected to account for the lion’s share of the combined entity, said a person familiar with the situation.
Sources warned that exact details of the joint venture are still being hammered out and remain very much in flux.
Still, sources told The Post that already the two banks have identified nearly 2,100 Smith Barney and more than 900 Morgan Stanley top-tier brokers, with the top producers within that category contributing $1 million and $2 million each to the combined firm’s bottom line.