Back in November, Morgan Stanley unveiled plans to change how it would compensate financial advisors. Now the Manhattan-based multinational investment bank and financial services company has announced that they will be postponing the changes for six months.
The changes in its compensation scheme--known in the financial industry as a “comp grid”--will cause payout for some advisors to decline if they generate the same revenue as before. The switch is now scheduled to take place October 1st.
Morgan Stanley’s head of field management, Vince Lumia, told the company’s advisors, “We know that you are facing enormous challenges personally and professionally while at the same time taking great care of your clients in a very difficult environment.”
The changes involve lifting the revenue thresholds fat which an advisor’s percentage cut of revenue increases. Therefore, advisors on the lower end of a revenue “band will receive lower payouts.
This is the first time in over two years that the company has made changes to thresholds, the last took place in 2017.
