Merrill Lynch again boasted Friday of a steep increase in its tally for client relationships even as its advisor headcount increased slightly.
Executives at the Bank of America wealth management subsidiary said on an earnings call Friday that their firm added nearly 40,000 new client relationships in 2023. The 47% year-over-year number surpassed a record last set at the firm in 2019. The firm also reported its headcount for Merrill advisors was up by about 175 and its count for coveted ultrahigh net worth clients was up 45% for the year.
Eric Schimpf, the co-head of Merrill Wealth Management, said that increase comes as the firm continues to bring "somewhat north" of 2,000 industry newcomers through
"Lindsay and I and the team continue to look at the best investment advisors in all of the communities that we serve," Schimpf said. "And we believe we offer a strong compelling offer for them to bring their business to stay alongside of our current advisors and continue to transition and retire."
Hans noted that the firm last year made changes to an unpopular pay grid policy. The new replacement system offers rewards to advisors who attract three client households with more than $500,000 each and who increase their existing clients' assets and liabilities by 7.5%.
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"When we designed that plan, and rolled that out, it was very much in response to feedback from our advisors," Hans said in the earnings call. "And a lot of those changes reflect that and … some things were simplified and structured in a way to reward advisors who are strategically and sustainably growing their business."
For highlights from Merrill Lynch's fourth quarter and annual earnings report, scroll down. To read about the firm's third quarter results,