Morgan Stanley Hires $2.4 Million Merrill Broker in California
Morgan Stanley continues to flex its recruiting muscle and on Friday hired a $2.4 million producer from Merrill Lynch in El Segundo, California, according to two sources familiar with the move.
A Morgan Stanley spokeswoman confirmed the move but declined to comment on specifics of the practice.
Cane could not be reached for comment at his new Morgan Stanley branch. He started his career at Merrill in 1986, moved to UBS Wealth Management USA three years later and returned to Merrill in 2009, according to BrokerCheck.
The broker had been looking to move in part because he had drawn a portion of new business from a “professional services alliance” program that Merrill shuttered in recent years, according to one of the sources. The program, which Morgan Stanley offers, allows outside Certified Public Accountants to partner with advisory practices and receive a cut of the revenue from referred customers.
A Merrill spokeswoman declined to comment.
Cane, who was said to have also mulled an offer from another aggressive recruiter Rockefeller Capital Management, reports to Scott Fleming, a former Smith Barney manager who worked for a stint as an industry recruiter before joining Morgan Stanley in 2019.
In September, Fleming, who runs the El Segundo office in addition to a Long Beach branch, hired a $4.2 million team that had been overseeing $810 million at UBS Wealth Management USA.
The El Segundo branch has 32 advisors, up from around 25 when Fleming started, according to one of the sources. Fleming’s El Segundo office has around 40 advisors, and the two offices generate a combined $100 million in annual revenue, the source said.
The hires come as Morgan Stanley has revived its recruiting efforts nationwide and has been offering deals that can reach over 300% of a broker’s trailing-12 production for a $2 million producer, according to recruiters and managers at the firm. The offers include upfront bonuses of around 165% that are contingent on brokers remaining with the firm for nine years and back-end deals based on asset transfer and growth targets.
The deals, which recruiters say are aimed at competing with high-end offers by other aggressive hiring firms, helped propel a nearly 9% jump in outstanding forgivable recruiting loans to over $3 billion after eight years of steady declines.
The Morgan Stanley spokeswoman declined to comment on its hiring bonuses.
In the other direction last week, Morgan Stanley lost a $4.6 million private wealth duo to Rockefeller Capital Management in Los Angeles and also lost a trio with $5.9 million in revenue and $1.1 billion in assets to UBS Wealth Management USA.
Merrill, unlike Morgan Stanley and UBS, has stood by its retrenchment from veteran broker recruiting in 2017 as it sought to promote in-house growth and avoid the high-cost practice. A spokesperson for Merrill did not return a request for comment.