On Wall Street Less could be more for Wall Street's retail brokers this year. And giant Merrill Lynch is expected to lower its grid soon. But commissions are no longer the whole story. One Merrill broker estimates the firm's deferred comp program alone adds about 10 percent to most producers' pay.
Income now has more to do with the sources of revenue than with just the grid payout percent-age.
Since total compensation plans are so diverse, however, the grid is still the quickest way to compare basic broker pay schemes among the firms. The table comparing firm grids appears on page 33. This Minneapolis-based regional instituted a new compensation plan for its nearly 1,200 brokers in January. WAP bonuses, similar to wirehouse stock compensation plans, at first glance don't seem as generous. But since Dain's percentage payouts are higher than those of the majors, WAP bonuses can push Dain brokers to payout rates of 41 to 49 percent, which exceeds many wirehouse payouts.