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Credit Suisse Brokers Who Do Not Transition to Wells Fargo Will Lose Deferred Compensation

By Erwin J. Shustak, Esq.  of Shustak Reynolds & Partners, P.C. posted on Tuesday, November 17, 2015.

We have written about the decision by Credit Suisse to allow its brokers to transition to Wells Fargo as part of an agreement between the two firms to move Credit Suisse brokers to Wells Fargo where they can sell Credit Suisse products.  Most of the Credit Suisse brokers, however, who do not transition to Wells Fargo will lose valuable deferred compensation earned, but not vested at Credit Suisse.

Credit Suisse, like most brokerage firms, takes a portion of broker compensation and agrees to pay that compensation as “deferred compensation” years down the road.  It is a way of enticing brokers to stay, and not leave, the firm.  In the case of the transition of brokers from Credit Suisse to Wells Fargo, however, those brokers who choose not to transition to Wells and leave for another firm will be considered by Credit Suisse to have voluntarily left Credit Suisse and to have forfeited their deferred compensation, earned but not yet vested. 

Estimates of the potential loss of these valuable deferred compensation benefits are in excess of $400 million, a great savings for Credit Suisse and an incredible loss of valuable benefits to departing Credit Suisse brokers who do not transition to Wells Fargo.

Shustak Reynolds & Partners, P.C. has handled many similar cases for brokers who face the loss of substantial deferred benefits.  We are happy to speak with any affected Credit Suisse brokers.  Shustak Reynolds & Partners, P.C. has extensive expertise and experience in the areas of securities, financial services and business law.  For more information contact Erwin J. Shustak, Esq., or Jeffrey Petersen, Esq., t 619.696.9500 or via email at [email protected] or [email protected].

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