(April 30 – 13:00 ET) – Merrill Lynch is planning to overhaul its compensation plan for U.S. brokers, according to the Wall Street Letter.

The newsletter says the compensation changes are being considered by a 10-member strategic review committee led by Robert Mulholland, an executive director in the U.S. Private Client Group. The committee is reportedly looking to simplify the compensation structure. “There is a 42-page compensation guide — no one can figure out how we get paid, it’s a joke,” says a Merrill insider.

The new compensation policy will likely push brokers to pitch fee-based services over traditional commissions. It may also push them harder to go after larger accounts. The WSL says the company will reward brokers with the largest accounts by increasing their payout. One Merrill broker predicted, “The firm is not going to be paying for anything less than $100,000.”

The firm also plans to make its grid more competitive. The WSL says Merrill brokers tend to earn less of their income from the grid, with 30% of their income from bonuses or other incentive programs. The firm is also said to be planning to add stock options to as a carrot for higher producers. It will also shorten the vesting period for its existing long-term incentive program.

The WSL