Rick Peterson & Associates

2008 Articles

Rick Peterson — Tue, 01 Jan 2008 23:45:24 +0000

Wall Street Journal "Headhunters weigh in on Advisor Mobility."November 16, 2008, p. C-1.
Effects of industry turmoil, large deals and economic woes on movement.

Investment News "Rep retention bonuses could ignite PR firestorm."October 20, 2008
Can Bank of America pay Merrill reps in cash - or will it be stock?

Research Magazine "Brokers in Motion"October, 2008
Advisors and clients are losing respect for the major firms and are looking around in greater numbers than ever.

Wall Street Journal "Merrill Concidered Selling Minority Stake to Goldman."September 16, 2008, p. C-1.
Most brokers will probably stay with Merrill.

Investment News "Deals cut on ARS take heat off brokers, advisors."August 11-15, 2008
Agreements will take some of the heat from their clients off the brokers.

Registered Rep "Morgan’s Magic" July, 2008
Morgan Stanley is benefiting more than other wirehouses in the recruiting wars.

On Wall Street "Breaking Free" July, 2008
More advisors are considering independence now that their deferred compensation has shrunk but many continue to prefer the safety of major firms when times are tough.

On Wall Street "The Strongest Link" June, 2008
Recruiting is still being emphasized and deals are still large by historical standards but are starting to be reduced at some firms.

Wall Street Letter "UBS Offers Support Staff Voluntary Severance."June 3, 2008
The broker force is not being cut but some of their support is.

Investment News "Fate of book rests on coin toss."May 19-23, 2008
Consequences of a bad break-up of a team discussed.

Smart Money "Full-Service Free Agents."June, 2008, p.76.
Clents are often more loyal to brokers when they move than to their firms.

Wall Street Letter "UBS Freezes Rookie Hiring."April 28, 2008
Hiring experienced brokers is more cost effective than training new ones.

Wall Street Letter "Credit Crisis Makes Wirehouse Brokers Antsy."April 28, 2008
Write-downs have wirehouse brokers calling headhunters at a record pace.

Dow Jones Newswires "UBS Won’t Hire More Rookie Advisors."April 16, 2008
UBS elects to concentrate on recruiting new advisors and retaining the ones they have.

Wall Street Journal "A New Reason for Brokers to Switch Firms."April 15, 2008, p. D-4.
Auction Rate Securities problems one more consideration for brokers looking at a possible move.

Investment News "Retention deal from JPMorgan calms Bear brokers."March 31, 2008
Deal may not keep brokers in place — clients or culture may prompt moves.

Investment News "Bear Stearns brokers getting set to jump ship."March24, 2008
Sense of betrayal by firm may prompt many to depart.

Dow Jones News Service "Morgan’s Dimon To Rivals: Back Off From Hiring Bear Brokers."March 21, 2008
Dimon gets competition to stop hiring Bear Stearns brokers while he develops a retention deal.
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Dow Jones News Service quoted on Smartmoney.com "JPMorgan Faces Challenges Keeping Top Bear Employees."March 17, 2008
Brokers are starting to explore their options.

Dow Jones News Service quoted on Smartmoney.com "Bear Stearns Employees Mull Options As Firm Does The Same."March 14, 2008
Speculation that firm might be sold to a different firm prompts brokers to wait before exploring options.

Investment News "Profit sharing at Edwards will get ax."January 7-11, 2008
Replacing the plan could spur further defections.

On Wall Street "The Deal Makers" January, 2008
Top recruiters discuss current recruiting trends within the industry.

2007 Articles

Rick Peterson — Mon, 01 Jan 2007 07:57:16 +0000

Investment News "Brokerage turmoil hits reps in pocketbook."November 12-16, 2007
As brokerage firms’ stock pricees decline some brokers are looking to rebuild personal net worth.

Wall Street Letter "Wachovia Heads for Greener Pastures." October 22, 2007
Wachovia plans to double Wealth Management within three years.

Investment News "Wachovia -Edwards deal seen as balancing act." October 1, 2007
Wachovia tries to keep A. G. Edwards brokers and managers on board by dividing up leadership.

Bloomberg "A. G. Edwards Shareholders Back Purchase by Wachovia." September 28, 2007
Wachovia executives try to keep A. G. Edwards brokers happy enough to stay with the combined firm.

Investment News "Wachovia looks to calm skittish A. G. Edwards reps." September 3, 2007
Wachovia executives are touring the country to try and keep A. G. Edwards brokers from jumping ship.

Registered Rep "Stand By The Man."September, 2007
The vast majority of Registered Rep’s Top 100 Advisor list work at wirehouses because of the value of the brand name.
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Registered Rep "Post Acquisition, A.G. Edwards BOMs Have Tough Job to Do."July 13, 2007
A.G. Edwards managers must prove themselves and hold on to their brokers.
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Investment News "A.G. Edwards brokers mull life after acquisition." June 4, 2007
A.G. Edwards brokers are concerned with the possible change in corporate culture after joining Wachovia.

Investment News "Smith Barney not for sale, executive says." April 20, 2007
Although Citigroup needs to take “drastic action” to turn things around, they say divesting Smith Barney is not an option. Some are skeptical.

Investment News "Morgan Stanley wins reps over." April 20, 2007
Reps are starting to feel at home and happy with the Gorman changes.

Dow Jones News Service "Morgan Stanley Builds ‘At Risk’ Book To Retain Brokers."April 13, 2007
Morgan Stanley explors ways to keep its own talent while poaching from others.

Registered Rep "Sallie’s Back."February 23, 2007
Sixty-nine Smith Barney brokers leave on February 16th..
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Investment News "Change at Citigroup gets mixed reaction." January 29, 2007
Changes at the top result in less concern than recent compensation changes.
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On Wall Street "Talent Brokers" August 11, 2006
Top recruiters discuss current recruiting trends within the industry.
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2006 Articles

Rick Peterson — Sun, 01 Jan 2006 07:57:02 +0000

Investment News "Smith Barney to slice rep pay.." December 11, 2006
Smith Barney’s cuts are expected to impact mid to lower producers most.

Investment News "Smith Barney struggles to keep assets, brokers from defecting." October 30, 2006
Burdensome compliance procedures may be the cause of broker defections and sluggish asset growth.

Dow Jones Newswires "Morgan Stanley Broadens Bonus Pool For Promising Brokers." September 29, 2006
Morgan Stanley intensifies its quest for ‘Rising Stars’ — young brokers who stand out among their peers.

Dow Jones Newswires "Merrill Rehires Manager From Morgan Stanley." September 19, 2006
Donal Plaus returned to Merrill after only five months at Morgan Stanley.

Dow Jones Newswires "Smith Barney To Deepen Link Between Mgrs’ Pay, Diversity." September 13, 2006
Smith Barney, like all other major firms, is striving to hire more minority brokers.

Dow Jones Newswires "UBS Hires Wachovia Manager in Palm Beach" August 29, 2006
Wachovia managers are moving to other frims in the wake of Wachovia’s management restructuring.

Registered Rep "Too Many BOMs? If Current Trends Continue, Yes" August 11, 2006
The glut in managers may start to abate by the end of the year.
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On Wall Street "Rivals for the Riche$t" August, 2006
The top five boutiques strive to hire brokers who can reach the richest clients.
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Dow Jones Newswire "STREET MOVES: Piper Regional Mgrs May Get UBS Branch Jobs" July 27, 2006
Continued industry consolidation further reduces management opportunities; some former Piper Regional Managers may be lucky to get Branch Manager positions.

Dow Jones Newswire "STREET MOVES: Morgan Stanley Names Crozier District Head" July 3, 2006
“Corky” Crozier, former director of Deutsche Bank Alex Brown’s North American brokerage business joins Morgan Stanley.

Registered Rep "Morgan Hires Manager From Wachovia" June 19, 2006
Morgan Stanley hires top quality manager from Wachovia.
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Registered Rep "Morgan’s Training Makeover" June 2006
Training at Morgan Stanley as well as other firms will change as the industry evolves.
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Registered Rep "The wealth Management Quest" June 2006
Payout grids are being tweaked to enhance long term retention as well as profitability to the firm.
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Dow Jones Newswire "Practice Management: Job Market Mixed For Branch Managers" May 18,2006
Scores of managers are unemployed after mergers, office closings and consolidations

Dow Jones Newswire "UBS Expands With Piper, But Faces Integration Challenges" April 11, 2006
The integration of Piper brokers should’t be as big a problem as some acquisitions because UBS is still small enough that size shouldn’t be such a concern to Piper brokers.

Dow Jones Newswire "Broker Returns to RBC Dain After Two Weeks" April 11, 2006
An RBC Dain Rauscher broker left for Piper Jaffray only to return shortly — bad due diligence or was he misled?
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Dow Jones Newswire "Piper Jaffray Unit Seen Good Fit With UBS" April 11,2006
Piper Jaffray brings a presence where major firms don’t have a strong presence.

Dow Jones Newswire "Ex-Morgan Stanley Regional Director To Join UBS" March 20, 2006
Ben Tarantino leaves post as Morgan Stanley’s Dallas Regional Director to take over UBS operations in Washington, DC, Maryland, Virginia, the Carolinas and Savanah, GA.
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Wall Street Journal Online March 16, 2006
Morgan Stanley revises management structure as James Gorman takes reins.
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Dow Jones Newswire "STREET MOVES: UBS Recruits $3 Million Smith Barney Broker"
UBS is targeting high-net-worth brokers like the recently hired Frank Savage, hired from Smith Barney in Houston.

Forbes "Hanging on at Legg Mason" January 25, 2006
Many Legg Mason brokers were bound to Citigroup by Legg funds.
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Rick Peterson & Associates

Rick Peterson — Mon, 10 Oct 2005 06:32:37 +0000

Rick Peterson & Associates (RPA) is a 28-year-old national firm headquartered in Houston, TX. The firm specializes in executive recruiting for the brokerage industry. Some of the staff focuses on branch and sales management searches, others on management trainees, but the bulk of all activity is concentrated on brokers.

Rick Peterson is the President of RPA. He specializes in high level managerial searches, as well as large individual producers and specialty teams. He also conducts seminars on recruiting, and is frequently retained for advice on market expansion strategy and competitive posturing by regional and national brokerage firms as well as banks. He is a regular contributor to The Wall Street Journal, Dow Jones News Service, Registered Rep Magazine, Financial Planning on Wall Street, Research Magazine, Securities Week, and other publications.

The recruiters and staff at RPA are professional, courteous, and forthright; they obviously use the utmost in discretion and abide by age-old policies of confidentiality. Feel free to discuss any and all of your problems with the RPA staff and be assured that all information you give will be kept in total confidence.

All fees incurred in the recruiting process are paid by the hiring firms and do not negatively impact deals – usually, in fact, deals are even larger when RPA’s service is used.

2005 Articles

Rick Peterson — Sat, 01 Jan 2005 07:56:41 +0000

Dow Jones Newswires "Wachovia Securities 2006 Pay Plan Irks Some Top Brokers" December 14, 2005
Addresses pros and cons of the new Wachovia compensation plan.

Dow Jones Newswires "Oppenheimer Snags $2.8 Million Mid-Market Broker" December 2, 2005
Discusses a new hire (Russ Allison) at Oppenheimer, Los Angeles, and the favorable climate at Oppenheimer for middle-markets brokers.

Registered Rep "Reshuffling the Decks" November 2005
Discusses changes in upper management organization at several firms.
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On Wall Street. "Morgan Stanley Reps Stick With Firm" July 2005.
There’s been a slow trickle [of brokers leaving Morgan Stanley]…
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Dow Jones Newswire. "Citi Faces Challenges Integrating Legg Brokers" June 24, 2005
Article by David Enrich and Jed Horowitz.

On Wall Street. "A Perilous Position" April 2005.
Describes the increasing difficulty in filling Branch Manager positions.
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Research Magazine. "Merrill, UBS Lead Pack" April 2005
Discusses recruiting trends in the industry.

Investment News. "Wachovia Securities works to increase reps’ productivity" March 21, 2005
General comments on training in the industry.

Registered Rep. "Money for Maturity" January 2005
Addresses trend toward bringing in new brokers who have experience in other fields.

On Wall Street. "Hopes and Fears" January 2005
Comments on what would be best and worst events for the brokerage industry in 2005.

Investment News. "Wachovia simplifies payouts in effort to lure top brokers" January 2005
In a move that distinguishes itself from other wirehouses, Wachovia Securities LLC last month drastically simplified its payout grid to brokers and advisers.

2004 Articles

Rick Peterson — Fri, 02 Jan 2004 03:56:05 +0000

Private Asset Management. “OpCo Rejuvenated” December 6, 2004
Oppenheimer & Co. has made a number of high profile hires this year indicating they have overcome any initial problems resulting from purchase by Fahnestock & Co. over a year ago. Rick Wisely and David Tufts, the OpCo managers in Los Angeles and New York, respectively, have had a lot of recruiting success.

On Wall Street. “Merrill, Smith Barney Use UBS Recruiting Tactic” December 2004.
Other firms are expected to start following the UBS lead of covering all or part of deferred compensation for the best brokers.
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Registered Rep. “The Tipping Point” November, 2004
Former Prudential advisors are becoming concerned with Wachovia’s trouble-plagued technology rollout and are still uncertain how the soon to be published grid will effect them.
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Registered Rep. “Exodus at UBS?” November 2004
The last payment of the UBS retention package coupled with some general unrest could foretell a mini-exodus of UBS brokers.
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Registered Rep. “The Death of the ‘Peter Principle’?” October 2004
The number of successful producing Branch Managers is declining as the amount of required compliance oversight balloons.
View full article..

2003 Articles

Rick Peterson — Wed, 01 Jan 2003 07:55:17 +0000

Our firm continues to be quoted frequently in the major financial publications (e.g.: The Wall Street Journal, Registered Rep, On Wall Street, The Wall Street Letter and Securities Week). Unfortunately, many of them no longer allow free access via hot links so you would be unable to hop to their articles if you are not an on-line subscriber. We are attempting to correct this problem. In the meantime, there are several articles scheduled to appear in the early autumn in these publications where we will be quoted liberally.

Research Magazine. October, 2003. Discusses trends in future compensation in the financial services industry.

2002 Articles

Rick Peterson — Tue, 01 Jan 2002 05:54:58 +0000

On Wall Street. “The Growing Unease” October, 2002.

Research Magazine. October, 2002.
This is one the most fertile times in recent years for a good hard-working broker to build a business. Investors are more willing than ever to switch firms and brokers are capitalizing by either going after disgruntled clients or moving their own clients to new firms. Article not available.

The Wall Street Journal. “Morgan Stanley Sets Change for Brokers in Competition.” September 18, 2002.

The Wall Street Journal. “Layoffs on Wall Street Make it a Dead End for Some Brokers.” Susanne Craig and Randall Smith. July 25, 2002. Wall Street securities firms — which have cut a total of 25,910 employees, or 7% of their work force, since the end of 2000, according to the Securities Industry Association trade group — are bracing for a new round of layoffs based on the stock market’s swoon during the past three weeks, notwithstanding Wednesday’s strong, but partial, rebound. … Already, the resumes are piling up. “There are maybe 50 managers that I have right now in my stable here who have been either outsized, downsized or terminated who are looking for a job,” says Rick Peterson, a brokerage-industry recruiter in Houston. “There have been so many cutbacks in the number of complexes and branches, there are just fewer and fewer openings for the kind of quality managers that are available in this environment.”
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Registered Representative. “Reversal of Fortune: Compensation Trends 2002.” David Geracioti. June 1, 2002. The old saying is that brokers eat what they kill. And these days it seems that everybody is on a diet. Our annual broker compensation study shows about one-third of the respondents took a substantial hit in the wallet last year, as clients fled the markets and trading volumes fell. Many brokers — optimists that they are — confidently predict a comeback this year. But, there aren’t many signs of that happening yet.
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Registered Representative. “The Difficulty of Going it Alone.” Anne Field. June 1, 2002. Sure, going independent has its allure. You have the potential to earn a higher payout; you are the undisputed owner of your own book; and, say you want to take a Tuesday off to hit the links, sure, go ahead, you’re the boss. But nirvana it’s not. As is often the case, there are tradeoffs: While you may dislike your firm for its fixation with monthly production numbers, you may also depend upon the resources the wirehouse brings, such as computers, office equipment and other support services. When you go off on your own, you are saddled with the time-consuming details of running a business that you never had to worry about. When you go it alone, no longer are you able to focus on investments exclusively; you need to become well-versed in buying insurance, negotiating office leases, buying computers and service contracts and finding and hiring various consultants. “You end up spending an inordinate amount of time on trivial details you used to dump on your manager’s door,” says Rick Peterson, president of Rick Peterson & Associates, a Houston-based recruiter specializing in the brokerage industry. Peter Haack is a case in point: He estimates that as an independent he spent perhaps one-third of his time in what he calls “non-producing activities.”
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Registered Representative. “Who are the Superbrokers?.” May 1, 2002. What makes an outstanding broker? Why do some reps get more out of their jobs — both financially and personally — than their peers? How is it that some brokers build a business and a web of relationships with clients that evolve into a rewarding community of interest for all participants — while others struggle with hard-selling, cold calling and endless turnover in their books?
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Registered Representative. “The McKinsey-ization of Wall Street.” March 1, 2002. Wall Street old-timers will tell you that the beginning of the end of the freewheeling business they loved came in 1979, when consulting firm McKinsey advised Merrill Lynch to become a marketing-driven firm as opposed to a markets-driven one. The era of seat-of-the-pants management by close-knit partnerships of traders and investment bankers was ending.
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On Wall Street. “Street Talk.” January 2002.

The Wall Street Journal. “Many Securities Firms Lost Brokers During 2001.” January 23, 2002.

2001 Articles

Rick Peterson — Mon, 01 Jan 2001 05:54:00 +0000

On Wall Street. “Legg Mason Captures $12 million Dallas Duo.” June 2001. Legg Mason has lured a two-man, $12 million team – the highest-grossing brokers ever to join the firm. Kyle Bass and Steve Fitzpatrick, who had been with Bear, Stearns, will join a newly created Legg Mason office in Dallas, Tex. According to Rick Peterson & Associates, the recruiting firm that brokered the move, Bass and Fitzpatrick will now be able to compete against their former Bear, Stearns colleagues for business.
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Registered Representative. “The Salaried Stockbroker.” Michael Hayes. May 1, 2001. Although salaries serve a purpose for some, industry observers wonder whether the appeal is long term. Peterson has a question for brokers thinking about salaries during this market pullback. How committed will you be to the salary structure when the market rebounds?
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The Wall Street Journal. “Pay Packages for Brokers Shrink as Market Constricts.” Cheryl Winokur Munk. March 28, 2001. Historically, firms had offered recruiting packages in the range of 75% of trailing commissions, said Rick Peterson, owner of Rick Peterson & Associates in Houston. But payouts heated up along with the market and competition. … Just because recruiting packages are shrinking doesn’t mean firms have stopped hiring. In fact, hiring has picked up because the regional firms are once again able to participate, said Peterson, the recruiter in Houston. “They can compete at these levels.”
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2000 Articles

Rick Peterson — Sun, 10 Dec 2000 05:49:59 +0000

The Wall Street Journal. “PaineWebber Scrambles To Prevent Losing Traders.” Charles Gasparino. July 20, 2000. The golden handcuffs tying many of PaineWebber Group Inc.’s 8,554 brokers to the firm suddenly have been unlocked, and the brokerage powerhouse is scrambling to prevent losing some of its biggest producers. … “If brokers want to leave, there’s nothing in this deal to make them stay unless they see in the next few months that the new firm is a much better investment firm-and that has yet to be answered,” says Rick Peterson, a brokerage recruiter in Houston. “There’s an awful lot of anxiety there.”
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Securities Week. “Aggressive Recruiting by First Union Securities Yields Impressive Numbers.” July 3, 2000. With its acquisition in May of First Albany’s retail brokerage assets and more than 200 brokers plus the recruitment of hundreds more from competing firms in the last year, First Union Securities has drawn a lot of attention from around the industry. “First Union continues to expand and recruit aggressively throughout the country with no apparent letup,” noted recruiter Rick Peterson, president and founder of Houston-based Rick Peterson & Associates, whose web site is located at www.rickpetersonassociates.com. Peterson added that First Union has lured talent from all the major firms.
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InvestmentNews. “Jones Bucks a Trend; Bets on Brokers, Not the Web.” Bruce Kelly. May 29, 2000. Some observers criticize Jones for casting such a wide net in its drive for more brokers. They also complain of the limited amount of financial products the brokers sell. “It’s like buying a McDonald’s franchise,” says Rick Peterson, a recruiter in Houston. “There’s one across the street, one behind you. The competition is your own firm.” Article not available.

InvestmentNews. “Goldman Farms Out Ultra-Rich Accounts.” Bruce Kelly. April 17, 2000. By beefing up a manager-of-managers or wrap-style product, Goldman may be signaling to its salespeople that they’ll get a smaller piece of Goldman’s syndicate, the hot IPOs underwritten by the investment bank, says Rick Peterson, president of a Houston consulting and recruiting firm that bears his name. Because of intense demand for new stocks, he explains, Goldman can instead channel the IPOs to its institutional sales reps, who get perhaps half the commission of their retail counterparts. The company pockets the difference. Clients come to Goldman for its powerhouse offerings, he argues. “Do you think Donald Trump wants a wrap account?” he asks. Article not available.

On Wall Street. “Broker Compensation 2000: The Experts Speak.” March 2000. What’s the bid-and-asked for brokers these days? For this year’s special coverage of broker compensation, we invited some of the leading agents in the broker market to share their insights with On Wall Street readers.
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Research. “Wirehouse Hopping.” Rebecca McReynolds. March 2000. If you’ve got at least five years in the business and are grossing $250,000 or more, you’ve probably already gotten the call. … Even Merrill Lynch…is joining the feeding frenzy. The market leader is beefing up its recruitment staff and its financial incentives, trying to make up for lost time, says Rick Peterson, a Houston-based recruiter. … “They are going to go after people like there’s no tomorrow,” Peterson says. “They’ve got a strategy for 2000 that is unprecedented for Merrill on recruiting.” Article not available.

Registered Representative. Compensation - “Repricing Brokerage.” Tracy Herman. February 2000 Why the growing dollars? For one thing, the market has been hot, of course. Rick Peterson, a Houston recruiter, points to other factors. “Handcuffs are huge, and firms have to address that to get brokers to move,” he says. “And while everybody is recruiting now, training programs have not been as rewarding as in previous years. It’s the tightest job market in history, and firms are not getting the cream of the crop anymore.”
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