Corporate & Securities Law

Broker recruiting has become fiercely competitive, and firms have resorted to novel strategies to attract and retain new recruits.  While signing bonuses are at unprecedented levels, they come with a price for advisers as major wirehouse firms now are attempting to make it much harder for reps to leave once they switch firms. Now, more than ever, advisers need to retain competent securities counsel to negotiate the deals and especially the ?fine print.?

Typical signing bonuses from major wirehouses now are as high as 360 percent of trailing twelve. However, firms now are proposing employee forgivable loan terms as long as 14 years, a substantial increase from what has been a 9 year standard. 

Additionally, firms are proposing to pay a much larger portion on the back end.  That is, an adviser may be offered only 130 percent up front, with the balance paid in seven back-end bonuses instead of five.

Eccleston Law Offices assists advisers in their transition.  Working with recruiters nationwide, we negotiate the non-numbers parts of the deal, including the employee forgivable loan terms and the employment agreement. If you are an adviser contemplating a transition, or a recruiter with a candidate, contact Jim Eccleston at 312-332-0000.