9 Reasons to Reconsider Switching Firms

If not, you could find yourself preoccupied by bitter, contentious disputes.

Contents

6. Unvested Deferred Compensation

If you have a significant chunk of unvested deferred compensation, you’ll need to take that into account when considering a potential move. This should be evaluated against any recruiting deal that you might be offered.

Choosing a firm with a program to address unvested deferred compensation is a good solution.

7. A Book That’s In Play

If you’ve already sold your house to one buyer, you can’t sell it to another.

Likewise, if you’re a wirehouse advisor and you’ve already contracted or been paid to hand off your assets to another advisor at the firm, you cannot transfer your clients’ accounts elsewhere.

And spending money on an attorney won’t help.

8. On the Horizon

Here’s the best reason to stay with the home team: A departing advisor is about to turn over their business to you.

In that case, you’ll certainly want to stick around!

At a major wirehouse, once the transition gets underway, those accounts typically can’t be moved elsewhere for the next five years.

9. Competitive Products & Services

Also, if your firm’s offerings in key product areas — like alternatives or lending, for example — are superior to the competition and are uniquely well suited to your practice, you have a strong incentive to remain in place.

Exceptional marketing programs or sales support would qualify as good reasons not to jump ship, too.

In addition, it goes without saying that a firm that is financially solid and with a strategic direction that aligns with your business is a place you may not want to leave.

It’s always essential to do a cost-benefit analysis when considering a potential move.

That process should include a realistic assessment of your practice and a careful consideration of whether or not the likely upsides of switching firms justify any potential downsides.

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As head of Mark Elzweig Company, a New York-based executive recruiting firm that specializes in helping financial advisors find the right career paths, Mark brings more than three decades of experience to his work with advisors and writing for industry publications. He also is a judge for ThinkAdvisor’s Luminaries industry awards.