Wells Fargo is ready to recruit more than 200 brokers from Credit Suisse's U.S. private banking unit set to close early next year, with the Swiss bank's blessing. There's only one snag: the brokers aren't having it, according to an Oct. 29 Wall Street Journal report.
The deal reportedly includes a recruitment bonus of 300% of annual fees and commissions. That's the "top recruiting deal that Wells Fargo would typically offer," noted Wendy Leung, a senior consultant at Diamond Consultants. But Credit Suisse brokers complained about a $5 million up-front payment cap that could limit the initial payment.
In response Wells Fargo, which flew in Credit Suisse brokers to its St. Louis office this week to trumpet the employment plan, offered up to $2.5 million in vested deferred compensation for those affected by the $5 million limit.
The brokers are also sullen that they could lose their deferred compensation from Credit Suisse if they chose not to make the move to Wells Fargo, the Journal reports.
Credit Suisse and Wells Fargo spokespeople declined to comment to American Banker.