Remuneration: efforts recognized | Finance and Investments

Among the companies that stand out is BMO Nesbitt Burns (BMO NB), whose rating fell from 6.9 in 2021 to 8.2 in 2022.

Many BMO NB CPs cite changes, made since November, that are favorable to many aspects of compensation. “The grid is interesting for advisers who are doing well,” said one respondent. “They have a system that is great for big growers, but not encouraging for average producers,” adds another.

“The pay is very unequal for someone starting out versus a large team of advisors who don’t grow but produce a certain amount and can now get huge bonuses. This is not a problem unique to BMO,” said one respondent.

BMO NB offers competitive compensation and support to help advisors grow, says Mario Rigante, regional president of BMO Private Wealth for Quebec, who declines to detail his Quebec, who declines to detail his grid. “It is very confidential. We reviewed the grid and reinvested for the advisers. The more growth they have in their practice, the more advantage they have.”

In 2022, the ratings of the National Bank Company (NBF) for compensation increased slightly compared to 2021. “The grid is more interesting. I received bonuses that I did not know existed,” said an FBN respondent.

“Our bonuses are aligned with our strategic orientations. For example, we have a net asset flow bonus, because, for us, it is important to bring new assets”, explains Denis Gauthier, Senior Vice President, National Director of FBN Wealth Management .

Some NBF respondents complain that PCs are no longer compensated for relationships below $150,000, while this threshold was previously $100,000. “Regulators are not there to protect small investors. Clients are transported from one planner to another. My clients are important, regardless of their assets,” criticizes a respondent of the firm.

Denis Gauthier clarified that the new limit applies to family relationships, which include a family and its family members. “If you have a relationship of less than $150,000 that includes Mr., Mrs., children, probably the best service offer at National Bank is not at NBF,” explains Denis Gauthier. He clarified that there are exceptions that allow you to designate a client with few assets, but who will one day earn high incomes, such as a medical student.

Some councilors believe that the NBF could offer more to pay CP assistants. To which Denis Gauthier responds that they have a basic salary and bonus that he considers competitive: “We can do more, but I am at peace with the amount we give.”

In 2022, Valerie Desjardins (VMD) maintains her score of 8.9 out of 10, the same as in 2021. That year, a three-year compensation grid came into force for which compensation is deferred over three years it was abandoned.

In addition, from July 2020, Desjardins Securities has abolished the commission to be paid to the cashiers on the new accounts that lead to the CPs. For the old accounts that have been transferred, a first reduction of this commission is planned for 2022 and a second, for 2023. -Chairman and General Manager of the Securities Commission of the Desjardins Group.

A Desjardins Securities representative believes the broker sent the wrong message to growing CPs by withdrawing the bonus on net sales. David Lemieux justifies this decision by the new requirements for the management of conflicts of interest resulting from the client-centered reforms. “There were some problems with bonuses strictly linked to sales,” he explains.

David Lemieux notes that there is also a bonus based on the profitability of trading blocks. To the CPs who consider it too difficult to achieve, he replies that his “base salary scale is generous and rewards certain efforts”.

At VMD, where the minimum client account has been at $100,000 in the grid more than three years, some advisers also believe that their broker could be more generous towards assistants. “We gave more money to the CPs to manage their team,” replies David Lemieux, who acknowledges that Desjardins Securities is reassessing the ratio of support staff to the work to be done.

hard to keep pay

It is difficult to know in detail the pay scales in the industry, but some trends remain, according to an analysis of the survey over the years. Most brokerage firms have established or increased the limit of assets above which an advisor does not receive compensation on a family relationship, also referred to in the jargon as the minimum client account. This ranges from $100,000 to $250,000 and each broker has set it based on their business model.

Some Raymond James advisors, however, are content to escape this trend, since the firm does not impose a minimum size for a family account. In addition, in this broker, the commission percentages that advisors receive on their gross income (payment rate) vary depending on the chosen business model. For example, some advisors may have a payment 80%, but have to pay more expenses, such as their rent.

In addition, some brokers index their remuneration grid, that is to say that they increase the minimum thresholds of the ranges of gross income that must be generated for an advisor to obtain a rate of payment given Or again, some companies shole some expenses or some cost increases in the board of advisers, such as the increase in remuneration for assistants.

“Our company always tries to make our compensation more difficult to obtain. She always increases our objectives to get the same pay at home. The assistants are still not paid enough and the council always has to supplement their salary with bonuses. That’s why you don’t manage to attract quality people,” said an adviser describing this trend.

In addition, the deferred compensation in the form of shares, called restricted stock units (RSU) or deferred share units (DSU), sometimes makes people happy among those who have the right, sometimes unhappy among those who do not have the right or the company does not offer equivalent compensation. “We have a really nice program with DSU, I can put up to 20% of my income in bank stocks until retirement,” said one respondent from RBC Dominion.

In addition, some respondents seem not to be in the target segment of CP desired by their broker. One respondent said he switched brokers for this reason. ” [Mon ancien courtier] he kept raising the minimum production bar to heights he wasn’t sure he could reach. I feel like he forced me to leave. Raymond James allows me to produce at my own comfort level. »

With the collaboration of Alizée Calza and Richard Cloutier

Click on the image below to download a PDF of the Regulator Score.

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