Bonus season for Branch Managers is upon us!
If the wonderful business experience, street smarts, and charisma of Big Firm Branch Managers were valued the way that the Street values assets under management, then we would see an Exodus of these folks worthy of remembering at my next Passover Seder.
Wirehouse Branch Managers no longer feel that their jobs are meaningful. They used to control the culture of an office, create value every day with the impact that they make in their Advisors’ businesses and lives. They commanded loyalty and respect because the impact on an Advisor’s practice was measurable. But now they are senior compliance officers and recruiters (okay, I confess, I like this one).
Big Firm Branch Managers no longer have any degree of autonomy. To be specific, they no longer have the authority to make the decisions requisite to be successful. As firms have grown, the world has changed too, full of scandal and enterprise level risk. Firms no longer trust the individual Manager to protect their franchises or to make policies in any kind of entrepreneurial manner to grow that same franchise. Policies are dictated from the Ivory Tower with no room for variation. Perhaps they are right. But that doesn’t mean these firms are a good place to work.
Worst of all, Branch Managers no longer feel that there is a direct link to how hard they work, how successful they are, and how much they are paid. In order for a Branch Manager to get paid well, he or she has to have a good year, the Division has to have a good year, and the firm has to have a good year. It’s like waiting for three planets to align in the sky.
Wealth management/retail brokerage is part of an industry that has taken the blame for all of the country’s woes. Bonus pools for everyone not in production are way, way down (NEVER GIVE UP YOUR BOOK). Firms are looking to cut costs. Can Big Retail Brokerage Firms survive and thrive with lesser skilled, emasculated Branch Managers running their shops? In a few years, we will take a look into this new Petri dish of an industry and see what has grown. Or we will see what has died.
