The recently elevated stock prices of some wirehouses’ parent banks has, in turn, hiked up the ticket price for recruiting many advisors.
Typically, wirehouses pay a portion of advisors’ deferred compensation in stock shares of the parent bank. As those banks’ stock prices have climbed—Morgan Stanley’s has almost tripled in five years and Merrill Lynch parent Bank of America’s has more than doubled—the value of their advisors’ deferred compensation has grown in tandem. READ MORE