Stifel Knocks on Morgan Stanley’s Doors, Hiring Three Million-Dollar Brokers
Ending a recruiting hiatus that it says was caused by uncertainties over the Department of Labor’s fiduciary rule, Stifel Financial Corp. on Wednesday said it has hired three veteran Morgan Stanley advisors across the U.S. in the past week.
Each is led by brokers who were managing about $100 million at the wirehouse, Stifel said in a news release. The brokers were were producing more than $1 million of annual revenue, said a person familiar with their books.
Stifel Financial Chief Executive Ron Kruszewski last week said the securities industry appears to have made progress in dismantling some of what it considers the most harmful consequences of the fiduciary rule, including the apparent demise of the right of investors to bring class-action lawsuits. He did not directly address the rules’ restrictions on paying brokers’ recruiting bonuses.
Thirty-two-year industry veteran Frederic “Rick” Shibel and a client service associate arrived at Stifel’s on Monday, bringing the office’s brokerage force to four advisors. Prior to joining Morgan Stanley in May 2008, he had worked for almost a decade at A.G. Edwards and its successor firm Wachovia Securities, according to his BrokerCheck history. Shibel began his career in financial services in 1985 with Home Life Insurance Co.
In , Stifel on Wednesday hired Mark P. Sullivan and a client associate to be its fourth advisory team in its branch there. Sullivan has spent the last nine years of his 34-year brokerage career at Morgan Stanley. He also worked for 14 years at UBS Financial Services and for four years at Prudential Securities. He first registered as a broker in 1983 with E.F. Hutton.
Last week, Steve Dailey joined Stifel’s 10-broker Bozeman, Montana branch. The 15-year industry veteran was a resident manager at Morgan Stanley, according to the firm’s website, and had been with the wirehouse since June 2009. He also worked for five years at Smith Barney and for two years at the start of his career at Merrill Lynch.
Stifel generalizes incentivizes experienced brokers with ten-year forgivable-loan deals, transition compensation and stock that amortizes monthly rather than the tax-heavy cliff-vesting that some firms offer, said Stifel recruitment head John Pierce.
“[W]e have re-opened our recruiting initiative for first-quintile advisors who relish our entrepreneurial culture” in the wake of the advisor-friendly solution that Kruszewski helped lobby for, Pierce said in an emailed statement.
A Morgan Stanley spokeswoman did not immediately respond to requests for comment on the departures or on where they fit in the firm’s production hierarchy.
Shibel was a senior vice president at Morgan Stanley, which according to the firm’s 2017 comp plan indicates production in the previous year of at least $1.1 million.
Sullivan was a first vice president, indicating more than $825,000 of fees and commissions generated from customers, while Dailey was a vice president denoting production between $550,000 and $825,000. Shibel and Sullivan are senior vice presidents at Stifel while Dailey is a vice president.