We all know that there is always some measured leap of faith and a confidence in their future that advisors must own when pivoting from what they have been used to for many years, sometimes a lifetime, to somewhere new.
This is more notable when a private banker looks to switch from the security of their salary and bonus payout structure to the more entrepreneurial structure of the brokerage advisor grid. Even though it may take extra time to bring assets over, the benefits are fairly immediate with a higher payout that is often double what the banker is being paid currently, and the compounded longer term economics as he or she continues to grow their business.
Look at these notable moves so far in 2024:
- William Wright, Matthew Hoffman – NYC (JPM PB to UBS)
- Joe Murt, Evan Boff, Chris Holsted – $3bn Dallas (GS to UBS)
- James Herring $2bn NYC (GS to UBS)
- Brant Daniel – $9bn Los Angeles (JPM PB to ML)
- Geoff Berlin, Lara Lagnusen, Ken Esman – $7bn Los Angeles (JPM PB to ML)
- Jake Burns, Ian Hagley – $1bn Seattle (JPM PB to ML)
- Alexandra Valentin, Juan Carlos Freile – $2.5bn Miami (JPM PB to RIA)
- John Duane, Gregory Giantsos – 700M, Melville, NY (BofA PB to LPL 1099)
- Seth Marshall – $515M, Ft. Wayne IN (PNC PB to LPL 1099)
- Alberto Francis – $725M, Houston (BofA PB to LPL Linsco)
- Josephine Maltese – 460M, Ft Lauderdale (BofA PB to FiNET)
Let’s call it like it is. Potential new firms know that private bank clients are heavy and sticky. They are often heavily tied to the bank and therefore difficult to move. Any potential firm that a banker would even consider would have to meet their clients needs, including banking, trust services, retirement services. But as clients become less and less enamored with the commercial logo on the business card, they are placing more of their trust into their relationships with their advisor.
Over the recent couple years, some wirehouse firms like UBS and Merrill Lynch have taken to actively recruiting private bankers. The advisors’ connections to business owners, executives and UHNW clients make them highly desired by these firms, along with the cash deposits that come with that.
In order to balance the risk, firms have figured out and tailored their offers with some upfront transition assistance that allow advisors space as they build up their business, and bigger rewards on the backends as the advisors bring over the assets. We are also seeing guaranteed salaries being offered for 2 and 3 years based upon the advisor’s past w2, to further aid the advisors as they build up their book. Successfully, accumulative deals can ultimately rival what a traditional broker deal looks like.
Much of the success will depend on the advisor. Advisors need to be honest with themselves if they are ready for the adjustment. Not everyone is built the same and therefore each needs to follow their own path. But for those advisors that do commit to a change, advisors have the ability to launch with a competitive rate that even if they only bring over one-third of their original book, advisors would stand to make a similar amount of income that they earned previously, break the chains that locked them to the bank, and it only continues to grow up from there.
As the Editor of The Gershman Group, a boutique financial services consulting firm, TGG brings expertise in financial analysis, strategic planning, and market research. With a keen eye for detail and a passion for helping businesses navigate complex financial landscapes, TGG delivers insightful, high-quality content to empower informed decisions. Backed by years of industry experience, TGG makes complex topics accessible through clear and compelling communication, shaping the firm’s thought leadership and commitment to excellence in financial services.
