Corporate & Securities Law

SNSFE Fielding Inquiries As Wells Fargo Will Pay No Retention Bonus For Wachovia Reps

By James Eccleston

On Friday, February 20th, it was announced that Wachovia Securities' brokers will not be getting a retention bonus from Wells Fargo.  In a conference call that day, Wachovia Securities' chief executive Danny Ludeman said the deal was off, and he explained that it wouldn't look right given that client account values are down 20, 30 and 40%.  In addition, he said that Wachovia Securities will be renamed Wells Fargo Advisors beginning in May.

The problem is that retention bonuses historically have been used to compensate brokers for the disruption caused by a merger.  One rep interviewed said some guys will be leaving.  And we have no doubt - attorneys at SNSFE negotiate the deals and have been in contact with Wachovia individuals planning to move.  Other firms will be more willing to pay money associated with the transition.

For information regarding SNSFE's services in strategizing the deal, negotiating the employment agreement and promissory note and other miscellaneous items that require careful consideration, please feel free to contact us.

Full post as published by FinancialCounsel on February 23, 2009 (boomark / email).