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Tasnady & Associates is a recognized compensation industry expert. We conduct all the competitive compensation detailed FA pay calculations for On Wall Street’s Annual Broker Pay comparisons of all the top wirehouses and regional brokerage firms. We also publish articles on compensation and are regular participants in the annual FA Recruiting Issues Roundtable, by On Wall Street. In addition, we are regularly quoted in industry publications and writers, including...

  • On Wall Street
  • Registered Representive
  • The Wall Street Journal
  • Investment News
  • Dow Jones Newswire
  • Financial Planning.com

How Wells Fargo is using 'counter-punch' to get unheard-of upper hand in the poaching wars with Morgan, Merrill and UBS

The DOL rule, abject opportunism and a little luck give the non-wirehouse wirehouse a window to reverse decades of getting bludgeoned by big checks

By Janice Kirkel | Jun 15, 2017

...“If bonuses were hitting 250 to 350% of the trailing 12 months and the big firms were hiring 300 to 400 people a year, now they’ll hire 100-200 people a year by offering less," says Andy Tasnady, a compensation consultant in the New York area whose specialty is broker pay.  "Wells Fargo, if it is still offering 250-350% should get a high proportion of the people in motion.” He works with most of the big brokerage firms. ....

Read more at RIABiz


More culture, less recruiting: How UBS plans to grow

UBS's ambitious growth strategy omits a traditional wirehouse tactic: recruiting.

By Andrew Welsch | Apr 17, 2017

...In simplifying its plan, UBS also cut out a number of behavioral bonuses (and penalties), aligning it more closely with non-wirehouse firms, notes Andy Tasnady, a compensation consultant. "A lot of the regional firms don't have the behavioral-based bonuses. It was the big firms, the wirehouses that [traditionally] had them," Tasnady says. ....

Read more at onwallstreet

The impact of the DOL’s fiduciary rule on adviser recruitment and pay

The U.S. Department of Labor’s fiduciary rule, designed to eliminate conflicts of interest by requiring all professionals who provide retirement investment advice to put their clients’ best interest before their own profits, will go into effect on April 10.

By Dan Butcher | Jan 11, 2017

...“They issued strong language on not using back-end bonuses that might encourage recently hired advisers to push clients too hard or inappropriately into new sales or revenue generating situations,” said Andy Tasnady, managing partner of Tasnady & Associates, a strategic consultancy specializing in compensation. “This has led to some suspensions and removal of back-end bonuses in new offers and a restructuring of deal calculation basis.” ....

Read more at efinancialcareers


Wells Fargo to End Broker Bonuses Tied to Loan Sales

Move comes as bank continues to face outrage after paying a fine related to retail-banking sales practices

By Michael Wursthorn | Dec 15, 2016

..."With the difficulties at Wells Fargo, there might be some heightened sensitivity to the shape of those bonuses," said Andy Tasnady, head of a compensation consulting firm. "Firms other than Wells Fargo will likely keep the lending bonuses, but they will be very careful in how they are administered." ....

Read more at The Wall Street Journal


Merrill, Morgan unveil comp plans, but advisers should expect changes

Merrill Lynch and Morgan Stanley are going in opposite directions once again, as the former told advisers that its grid is unchanged under next year's comp plan while the latter raised some hurdles by 10%.

By Andrew Welsch | Dec 07, 2016

...Some broker pay changes occur over a longer term period. Andy Tasnady, a compensation consultant, does not anticipate that firms will make significant changes to their compensations plans mid-year. But, he says, client reactions to how firms implement the rule next year could drive unexpected changes. "Will there be a challenge with everyone signing these best interest contracts? In other words, will there be a change in client acquisition and retention?" Tasnady asks. "That's when you should look for them to make potential changes to the compensation structure."....

Read more at OnWallStreet


Compensation 2016 - What's Next for Advisor Pay?

For many advisors, the guide to their firm's compensation plan seems to get longer every year. Some advisors joke that they have to rifle through dozens of pages just to find out where their pay has been cut.

By Andrew Welsch | March 2016

...Andy Tasnady, a compensation consultant and head of Tasnady Associates, says more firms might implement new changes to their small-household policies, but the pace of acceleration may slow down at firms such as Merrill Lynch, that have already moved further along this path. ....

Read more at OnWallStreet


Wealth management compensation: What U.S. financial advisers get paid

By Dan Butcher | Nov 3, 2016

...“A lot of the deals require advisers to reach a particular sales level to get all of the payouts,” says Andy Tasnady, managing partner of Tasnady & Associates, a strategic consultancy specializing in compensation. “Advisers have to continue to grow their book of business and achieve results to get backend payouts, hitting certain targets that the firm sets. ....

Read more at efinancialcareers


"Cross-Selling Scrutiny Puts Wirehouses in Regulatory Crosshairs"

Industry regulators have set their sights on “aggressive” cross-selling, putting wirehouse and bank practices in the crosshairs.

By Danielle Verbrigghe | Oct 05, 2016

...These cases will likely serve to make other banks more cautious when it comes to cross-selling incentives and compliance controls, says Andy Tasnady, head of compensation consultancy Tasnady & Associates. “It just has to be done more carefully,” Tasnady says. “You don’t want to design an incentive that can be pushed too far to lead to behaviors that you didn’t want.”....

Read more at fundfire


Investment banking versus wealth management: Which pays the most?

This is what you’ll earn in wealth management in the U.S.

By Dan Butcher| Nov 03, 2016

...“These are not exact calculations from any one data set or survey, but reflect our experiences in designing compensation plans for regional and national employee-based wealth advisory firms over the years,” said Andy Tasnady, managing partner of Tasnady & Associates, a strategic consultancy specializing in compensation. “Recognize that the total compensation is based 100% on their compensable sales revenue levels.” ....

Read more at efinancialcareers


Rewriting the rules? The impact of UBS comp changes

Analysts and industry insiders are divided as to whether UBS' revamped comp plan may spur rival firms to follow suit – and whether the wirehouse's changes will entice its advisers to stay put rather than go independent or accept recruiting bonuses to move elsewhere.

By Andrew Welsch | Jun 09, 2016

..."A juicier incentive for retirement at the current firm should lighten the motivation a bit for 'monetizing my book,'" Tasnady says, adding that could further reduce attrition at UBS with regard to other firms recruiting away advisers and the movement to independence. ....

Read more at onwallstreet


UBS raises adviser pay as part of sweeping changes

President Tom Naratil says the firm will recruit less, spend more on advisers already at the firm and give additional power to branch managers.

By Andrew Welsch | Jun 08, 2016

...Andy Tasnady, a compensation consultant, says that higher payouts for brokers may end up paying for themselves. UBS "may be able to pay for these changes through lower attrition – because that costs the firm when you lose advisers," Tasnady says, who was briefed on the changes. ....

Read more at onwallstreet


9 tips to max out compensation plans

Compensation packages aren't what they used to be – and won't look the same tomorrow as they do today. ...

By Ann Marsh | May 19, 2016

Instead, "firms have really aligned around total adviser productivity," Tasnady, head of Tasnady & Associates, says. "Now instead of multiple payout grids due to differing products … there's one core payout grid." ....

Read more at OnWallStreet


DoL Fiduciary Rule May Spur Product Innovation

If the Labor Department's fiduciary rule is finalized later this month, not a lot may change on day one. But a period of widespread innovation of products and platforms may soon follow...

By Andrew Welsch | March 16, 2016

...Andy Tasnady, a compensation consultant and head of an eponymously-named firm, also sees a likely drop in revenues related to annuities, particularly in the independent advisor channel. "A higher portion of the advisors there get some of their business from the annuities, and other products," Tasnady told On Wall Street last month. ....

Read more at OnWallStreet


Ameriprise Shifts Comp Grids

Ameriprise has shifted compensation grid thresholds for some lower producing advisors in its employee channel, according to documents viewed by On Wall Street.

By Andrew Welsch | Feb 15, 2016

..."In a year of relatively little changes, this strikes me as the biggest one," Tasnady says of Ameriprise's changes. "The timing is tough because it looks like they are heading into a down year. So the pain for advisors may be even greater." ....

Read more at OnWallStreet


Merrill Raises the Bar on Broker Pay

Merrill Lynch is moving the goal posts when it comes to broker pay.

By Andrew Welsch | Dec 03, 2015

..."It's a less contentious way of taking a little bit of money out of the comp plan," Tasnady says. Tasnady notes that in any given year there will be a different distribution of production across the advisor force; some will have boosted their business while others may have plateaued or even fallen back a little. ....

Read more at OnWallStreet


Compensation 2015 - Advisor Pay: What to Watch for Next

How much am I going to be paid this year? It's a question advisors ask themselves when they first glimpse changes to their firms' compensation plan.

By Janet Levaux | Apr 1, 2015

. ...The firms "have been adding to their plans, but they tend to do it in deferred. You can add a 2% bonus for a certain behavior, but do so in 2% deferred," says compensation consultant Andy Tasnady, head of Tasnady Associates....

Read more at OnWallStreet


Brokerage executives enjoying steadily increasing payouts

As markets thrive and wealth management becomes a focus at major firms, brokerage execs see their pay rise

By Mason Braswell | Apr 5, 2015

. ...“The brokerage business has been the recent star,” said compensation consultant Andy Tasnady of Tasnady Associates. “With the government reducing the leveragability of some of the other businesses, a lot of firms are making less money in the non-brokerage business while brokerage has been chugging along and going steady.” ....

Read more at InvestmentNews


Morgan Stanley Tweaks Bonus Plan; Adds Sports, Entertainment Group

Morgan Stanley is moving to defer slightly more compensation for its advisors in 2015, experts say, but just how financial advisors will react to the shift is debatable.

By Janet Levaux | Dec 22, 2014

. ...“It’s a big company, so even a modest change can add up,” said compensation consultant Andy Tasnady of Tasnady Associates in Port Washington, New York, in an interview. “If you’re doing $10 billion in sales, a 1% shift from cash to deferred compensation is $100 million. That has a profit-and-loss benefit.” ....

Read more at ThinkAdvisor


UBS, Merrill increase bonuses for new assets and banking referrals

2015 compensation plans push advisers to build their AUM and refer clients to the bank

By Mason Braswell | Dec 12, 2014

. ...“That's always an area of focus and contention — how fast and how far to promote the lending aspect of the bank,” said compensation consultant Andy Tasnady of Tasnady Associates. “It's a careful calibration for encouraging it without pushing it too far.” ....

Read more at InvestmentNews


UBS Reps to See Bigger Wealth Bonuses

The 7,000 reps are set to receive more fees and commissions tied to insurance, lending and planning work

By Janet Levaux | Dec 15, 2014

. ...“The 6% level is the most I have seen from any major firm, in terms of what is being paid on an ongoing basis for the most-successful advisors,” said compensation consultant Andy Tasnady of Tasnady Associates in Port Washington, New York, in an interview. “This is a bonus that will be paid not just on growth [over last year] but on the overall business.” ....

Read more at ThinkAdvisor


Morgan Stanley Payouts in ’15: Will a Boost in Deferred Comp Hurt Reps?

Industry experts are divided on the impact of this shift on advisor retention and recruiting

By Janet Levaux | Nov 17, 2014

. ...“It’s a big company, so even a modest change can add up,” said compensation consultant Andy Tasnady of Tasnady Associates in Port Washington, New York, in an interview. “If you’re doing $10 billion in sales, a 1% shift from cash to deferred compensation is $100 million. That has a profit-and-loss benefit.” ....

Read more at ThinkAdvisor


Morgan Stanley deferring more broker compensation in 2015

Grid levels remain unchanged, but a greater portion of payout will be tied to vesting requirements, company stock

By Mason Braswell | Nov 13, 2014

. ...Morgan Stanley & Co. is set to make changes in 2015 that will result in brokers having more of their compensation deferred, according to a source familiar with the matter. ....

Read more at InvestmentNews


Compensation 2014 - It's all about Growth

Financial advisors expecting radical, across-the-board changes from last year's compensation plans will be largely disappointed.

By Andrew Welsch | Mar 1, 2014

. ...Instead, wealth management firms — coming off a banner year — are looking to repeat that success by tweaking their comp plans: Thresholds will rise, but ever so little; awards will grow too, if only a point or two.....Data compiled by compensation consultant Andy Tasnady...

Read more at OnWallStreet


New plan for Barclays advisers offers more even ratio between salary and bonus

Payout grid still in place but commissions will be paid quarterly instead of monthly

By Mason Braswell | Jan 21, 2014

. ...“Advisers love to have a very direct clear opportunity to make money, so usually when people talk about base and bonus the first thing that tends to involve is a cap on the upside and often a lot of the best advisers will go running,” Mr. Tasnady said. “But this doesn't sound like that.”....

Read more at InvestmentNews


Compensation 2014 - It's all about Growth

Financial advisors expecting radical, across-the-board changes from last year's compensation plans will be largely disappointed.

By Andrew Welsch | Mar 1, 2014

. ...Instead, wealth management firms — coming off a banner year — are looking to repeat that success by tweaking their comp plans: Thresholds will rise, but ever so little; awards will grow too, if only a point or two.....Data compiled by compensation consultant Andy Tasnady...

Read more at OnWallStreet


New plan for Barclays advisers offers more even ratio between salary and bonus

Payout grid still in place but commissions will be paid quarterly instead of monthly

By Mason Braswell | Jan 21, 2014

. ...“Advisers love to have a very direct clear opportunity to make money, so usually when people talk about base and bonus the first thing that tends to involve is a cap on the upside and often a lot of the best advisers will go running,” Mr. Tasnady said. “But this doesn't sound like that.”....

Read more at InvestmentNews


Bonus Season’s Cash Payouts ‘De Minimis,’ Expert Says

The latest figures don’t make an ugly picture for Wall Street employees any prettier

By Janet Levaux | March 5, 2013

...“In 2011, when the bonuses totaled $18.5 billion, one could assume that the $4.5 billion drop from 2010 may have stemmed from increased deferred compensation being given as a proportion of total compensation,” said compensation consultant Andy Tasnady of Tasnady Associates in Port Washington, N.Y., in an interview.....

Read more at AdvisorOne


Compensation Plans Step Up to Next Level

Financial advisors who strive for more assets stand to reap new rewards.

By Mason Braswell and Lorie Konish | March 1, 2013

..."They're definitely taking cues" from one another, Tasnady says of the wirehouse firms: Bank of America Merrill Lynch, Morgan Stanley, UBS, and Wells Fargo. "They have similar elements around growth—either growth in assets, growth in certain types of accounts, [or] growth in total sales."....

Read more at OnWallStreet


Raymond James’ Pay Grid Gets Long-Awaited Facelift

In one of the most dramatic overhauls to its compensation plan in two decades, Raymond James has introduced a new product-neutral pay grid as the firm looks to stay competitive with industry standards.

By Mason Braswell | January 17, 2013

...Most firms have latched onto this strategy as a way to reduce the potential conflict of interest when selling products, according to Andy Tasnady of compensation consultancy Tasnady & Associates. “They’re one of the last one’s left with product based payouts,” he said....

Read more at OnWallStreet


BofA-Merrill New Comp Plan: Good News, Bad News for Advisors

Bonuses on net new assets in 2013 are tied to fee-based flows, loans and similar products

By Janet Levaux | December 17, 2012

...“There is a revision to the bonus plan that could make it actually harder to earn the initial amounts,” said compensation consultant Andy Tasnady, in an interview with AdvisorOne. “Not all assets count, namely non-fee based assets like cash, bonds and equities that are not in certain wrap arrangements.”...

Read more at AdvisorOne


Morgan Stanley’s 2013 Advisor Comp Plan Seen as Good for Medium Term

New stock ownership and other shifts may not help in the short run, experts say, but provide benefit as time passes

By Janet Levaux | December 12, 2012

...In the short term, the compensation changes “may not have much of impact on those waiting to and ready to leave,” said Andy Tasnady, managing partner of Tasnady & Associates, which works on compensation planning, performance measurement and plan design, in an interview. “They are motivated by the cash they can get from upfront deals and upfront rates” at rival firms....

Read more at AdvisorOne


Rep.'s Annual Compensation Report 2012: The Chink in the Ka-Ching

Small household accounts have always been the bane of brokerages' existence, and advisors who work with such clients do so at the peril of their own compensation.

By Jerry Gleeson | June, 2012

...Andy Tasnady of Tasnady & Associates, a compensation consultancy in Port Washington, N.Y., that specializes in the financial advisory industry, says account minimums have been around at least 15 years. Part of the rationale is efficiency; successful brokers cannot have too many relationships, he says. “When you want to provide advice, you can’t be good at it with 1,000 clients,” Tasnady said. “If you’re only going to have 200 or 300 clients, they may as well be large ones.”...

Read more at WealthManagement.com


Analysis - Broker bonus bidding war comes at a cost

(Reuters) - Bonuses offered by the U.S.'s biggest securities companies to recruit top brokers are reaching their loftiest levels since the financial crisis, and none of the big firms are retreating from the bidding war.

By Jed Horowitz | April, 2012

...assets, according to Cerulli. Game of chicken Andy Tasnady, a sales force management and compensation consultant at Tasnady Associates, said retail brokerages have no choice but to recruit because they can no longer rely on inexperienced advisers making cold...

Read more at Reuters


Dealing with clients' scandal anxiety

(Reuters) - When Wall Street misbehaves, it's often a financial adviser who ends up on the hot seat, left to answer the public's questions.

By Jennifer Hoyt Cummings | March, 2012

...Andy Tasnady, founder of the consulting firm Tasnady & Associates, said that clients mostly want to be assured of two things during the conversation: "Is my money safe?" and, "Can I trust the people and products from this firm?"...

Read more at Reuters


Compensation 2012

Our annual pay scale issue

By Frances A.McMorris | March, 2012

This year in our cover story, we see UBS taking the top spot at the $1 million and $600,000 producer levels among the four wirehouses. Raymond James grabbed the lead among the regionals at the highest level, with Janney Montgomery Scott on its heels. And, for the first time we've included Southwest Securities on our list of company grids, although not in our comparative charts. As always, it's a challenge, comparing apples and oranges. However, with the help of compensation expert Andy Tasnady, we believe we do a credible job. .....

Read more at OnWallStreet


Go Teams!

Our Annual Compensation Ranking Examines Team Remuneration Along With the Best Payout Plans

By Lorie Konish | March, 2011

The results may surprise you. With the help of our outside compensation expert Andy Tasnady, we found out which firms came out on top at the $1 million, $600,000, $400,000 and $200,000 production levels......

Read more at OnWallStreet


Compensation 2011

Your definitive guide to the changes in advisor compensation across the industry

By Lee Conrad and Lorie Konish | March, 2011

While recruiting packages generate a lot of interest , the actual pay that advisors receive from their firms doesn't get as much attention. So once again, On Wall Street has sifted through the payout grids in our industry for a unique comparison of their pay packages. And we returned to our outside compensation expert, Andy Tasnady, to create our signature comparative chart, which ranks the firms based on various levels of advisor production.....

Read more at OnWallStreet


Taking Long-Term View on Advisor Pay

by Annie Gasparro | Dec, 2010

"The real question is…where can you best grow your business," says Andy Tasnady, a financial advisor compensation consultant with Tasnady & Associates. And the answer, he says, is different for every advisor, depending on the technology and training they need, the level of competition at the branch, the relationship with the manager and possibilities for marketing.

Read more at Financial Advisor


Financial Advisers Moving For the Money

by Andy Tasnady | May, 2010

Compensation for financial advisers varies a lot depending on the brokerage channel they work in, be it the wirehouse world, independent space or at a mid-size or regional firm. But compensation consultant Andy Tasnady, with Tasnady & Associates says, the right fit isn’t entirely based on the payout....

Read more at The Wall Street Journal


Compensation 2010

Your definitive guide to the changes in advisor compensation across the industry

by Helen Kearney | March, 2010

There has been a shuffling of the deck in our comparative compensation chart this year. The chart, compiled by compensation expert Andy Tasnady, shows you the pay you can expect from all the firms at a your level of production...

Read more at OnWallStreet

 

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