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Cetera Plans Big Changes to Retention Bonuses

16:57 24 July in In the News by rafferty

July 23, 2018 By Janet Levaux, ThinkAdvisor Traditional retention bonuses are "outdated," CEO Robert Moore says. After announcing its sale to private equity group Genstar Capital last week, Cetera Financial Group says it is working on equity plans for its roughly 8,000 affiliated advisors. Industry watchers say this move — and the overall deal with Genstar — should prove positive for Cetera. According to CEO Robert Moore, the firm believes that “advisors deserve more than a traditional retention bonus,” which … is “an outdated way to do things.” “Genstar is working on equity plans to foster that alignment and to engender broad-based and meaningful ownership that [goes beyond] … top producers,” Moore said in an interview. Traditional retention deals that include forgivable loans, he says, are less than ideal, since that money does not “go to...

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After years of uncertainty, Cetera advisors see stability in Genstar deal

17:21 23 July in In the News by rafferty

July 20, 2018 By Tobias Salinger, Investment News  More than 7,700 financial advisors with Cetera Financial Group’s six independent broker-dealers can now rest assured their firm won’t be pulling the rug out from under them. More than 7,700 financial advisors with Cetera Financial Group’s six independent broker-dealers can now rest assured their firm won’t be pulling the rug out from under them. Genstar Capital agreed to purchase a majority ownership stake in the largest IBD network, the firms said July 17, ending speculation that Cetera could be rolled up into rival firms Advisor Group or LPL Financial. The private equity firm is paying roughly $1.7 billion, people familiar with the matter told Bloomberg. Cetera and the acquiring firm didn’t disclose the terms of the deal, which is slated to close late in the third quarter....

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Cetera brokers may go elsewhere with no stay bonuses on horizon

19:05 20 July in In the News by rafferty

July 20, 2018 By Bruce Kelly, Investment News Some may feel spurned and leave, while others will simply shrug off latest slight and stay Will they stay or will they go? That's the question facing Cetera Financial Group's 8,000 brokers and advisers now that they know the company has no intention of offering them retention bonuses to stay on with new owner Genstar Capital. That could trigger many of the brokers to look for employment elsewhere, while other advisers may simply shrug off this latest change, industry observers said. Retention bonuses, or stay bonuses, are customary to lock advisers in their seats after a change in ownership of a brokerage firm. Advisers typically work off the payments, usually in the form of a note or loan, over a three to five-year period. The bonuses are typically given...

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Genstar Capital buys majority stake in Cetera Financial Group

19:29 18 July in In the News by rafferty

July 17, 2018 By Greg Iacuri, Investment News The private-equity firm has previously invested in such companies as Mercer Advisors and AssetMark Cetera Financial Group, a network of six independent broker-dealers with about 8,000 brokers and advisers, said Tuesday evening that private-equity firm Genstar Capital will buy a majority equity stake in the company. Cetera's holding company, Aretec Group Inc., has entered into a definitive agreement with Genstar. Terms of the deal, slated to close in the third quarter, were not disclosed. Cetera's leadership team is "maintaining a meaningful ownership position," according to a press release, which didn't specify that position. The deal marks the completion of Cetera's review of its capital structure, which the company publicly acknowledged in February. LPL Financial and Lightyear Capital, the owner of Advisor Group, had also expressed interest in a potential...