By James Langton

(February 12 – 11:00 ET) – Registered Rep reports that Dain Rauscher brokers will receive an estimated US$100 million in retention bonuses from Royal Bank.

The magazine for retail brokers in the United States cites Ron Tschetter, president of Dain’s Private Client Group, as estimating that Dain Rauscher reps will share retention payouts worth US$100 million for staying with the firm through its acquisition by Royal Bank.

RR says that reps may participate in a four-year plan which will pay bonuses in phantom Royal Bank stock, based on production from October 1999 to September 2000. A portion of the phantom stock will be paid out in cash at the end of each year (one quarter vests each year).

With phantom shares, reps are assigned a certain number of imaginary Royal Bank shares. Reps will receive the gain on the share price over a given period. For example rather than actually receiving 100 shares, a rep is assigned 100 phantom shares trading at, say $50. If the stock moves to $60, the rep receives $10 times 100, or $1,000.

Reps with at least five years of experience and production of more than US$300,000 annually can earn a 22.5% bonus; and reps with at least five years of experience and annual production of under US$300,000 are eligible for a one-time 5% cash bonus if they boost production 15% or more in 2001 and crack the $300,000 level.