[lookout123]

I haven't looked into the specifics of the MS retention bonuses but if they are in fact retention bonuses for brokers this may be a very smart bit of business. The brokerage business is extremely cutthroat and loyalty is a foreign concept. That $3B divided by 6500 is only a bit more than $400K average on each. Some of those brokers are easily 8 figure annual producers. You pay retention bonuses to keep these guys around otherwise they go across the street, accept a 6-7 figure signing bonus and take 90% of their clients with them. A broker who has busted his but for 5 years can easily collect $5-700K signing bonus on their first firm to firm move.

Why? Because they make those firms money. Don't cut your nose off to spite your face. Keep your moneymakers happy so you can rehab the rest of your company.