When Credit Suisse announced that it wanted to downsize, its brokers may have been worried about their jobs, but not for long – the company quickly struck a recruiting arrangement with Wells Fargo, a company that hopes to strengthen its connections to uber-wealthy clients.
A Recruitment Offer that Misses the Mark
But the details of the recruitment package offers to Credit Suisse’s brokers turned out not to be ideal for employees. Many of the brokers were dissatisfied with the terms, including that advisers would earn less than half of their current salaries up front, and an up-to-13-year employment lockup. As a result, many Credit Suisse brokers sought employment elsewhere, including UBS, Merrill Lynch, and Morgan Stanley.
Credit Suisse Refuses to Pay
The Credit Suisse deferred compensation program eliminates benefits for employees when they voluntarily resign, but otherwise maintains that all deferred compensation – which is compensation that is paid out at a later date than when it was earned – is valid. Unfortunately, Credit Suisse has told many brokers who chose to work with firms other than Wells Fargo that it will not pay them their earned deferred compensation.
At the law offices of Napoli Shkolnik PLLC, we strongly believe that all Credit Suisse brokers who have been affected by the company’s transition and Wells Fargo recruiting agreement are entitled to their deferred compensation. If you have received notice that your deferred compensation is being withheld, our attorneys are capable of representing you and helping you recover the compensation you deserve. Please contact us today for your free consultation.