(October 10 – 12:20 ET) – Dain Rauscher is preparing to offer its brokers between 10% and 35% of trailing 12-month commissions to stay with the firm once it joins Royal Bank, The Wall Street Letter is reporting today.

Ronald Tschetter, president of Dain Rauscher’s private client group, told the WSL that the 10% to 35% range is “within the ballpark” of what it will offer, noting that the firm has set aside a US$200 million retention pool, although this will be divided between both the retail and capital markets divisions.

The expected retention package is in line with what is being paid to PaineWebber reps in the wake of that firm’s acquisition by UBS Warburg.

This appears to be the going rate for post-acquisition retention. Pay-offs to top producing brokers looking to move firms will often top 100% of trailing commissions. A similar deal is expected to be offered to Donaldson, Lufkin & Jenrette reps by acquiror Credit Suisse First Boston.
-IE Staff