Merrill cuts low producers, flattens grid

Merrill Lynch & Co. Inc.'s new pay plan will put more brokers in the “penalty box” and eliminate higher pay for fee-based business, according to a Merrill spokeswoman.

Merrill Lynch & Co. Inc.’s new pay plan will put more brokers in the “penalty box” and eliminate higher pay for fee-based business, according to a Merrill spokeswoman.
The changes are set to go into effect next month.
Brokers with six or more years’ service will have to produce $300,000 or more to get on the grid.
Reps producing less than that will get a flat 25% payout.
Under Merrill’s current pay plan, 10-year vets must produce $200,000 to avoid the 25% payout, and six- to nine-year brokers must do $150,000.
In addition, under the new plan, six-year-plus veterans doing less than $200,000 will earn a 20% payout, and 10-year brokers doing from $300,000 to $399,999 in production will get 35%.
In another change, all products will earn the same payout.
Payouts on transactional business will increase by a point or two, while pay on fee-based business and insurance will drop one to two points.
Merrill Lynch is based in New York.