RBC Reduces Compensation For Low-Producing Financial Advisors

Registered Rep is reporting that RBC Capital Markets is reducing the payout for certain of its financial advisors ("FA").  Specifically, FAs who have been in the securities industry for five or more years and are generating $175,000 to $300,000 in gross production will be effected by the changes to RBC's compensation plan.  http://registeredrep.com/news/rbc_chops_payout/.  The move is the just the latest attempt by a broker-dealer or bank to demand increased productivity and hasten low-producer departures.  According to a RBC Regional Director, RBC advisors who produce $200,000 to $225,000 in annual revenue will have a payout reduction from 34% to 25%.  Advisors who produce $225,000 to $250,000 will have a payout reduction from 34% to 28%. Advisors who produce $250,000 to $300,000 will have a payout reduction from 37% to 34%.  In Florida, generally these Advisors are at-will employees.  Accordingly, RBC may modify its compensation plan at any time and for any reason.  With that said, RBC will not be permitted to retroactively apply its new production grid to commissions already earned.  Such action would violate Florida, and most state, wage and hour laws.