While retail brokers at Merrill Lynch Canada fret about their future, their U.S. counterparts are facing a new compensation plan.

Merrill says that it will be revising its compensation scheme to push brokers toward more fee-based business, larger accounts, larger tickets and more lending business. The goal is to accelerate the shift away from volume-based business to steadier fee income, while also focusing attention on high-value accounts and pushing small clients to its call centres.

Managers will be measured on net new assets, market share growth, profitability and leadership. It has initiated a talent review of its top 400 managers in an effort to find the best within its ranks, and focus on their development.

The firm also plans some retention goodies such as helping brokers buy their houses, provided that they finance their mortgages with the firm. The new plan takes effect in January. Merrill said it is also lengthening its broker training program to five years from two years, and encouraging its advisors to pursue professional designations. It says that 40% of its main retail force have CFP and/or CFM designations.

In the short-term the firm will focus on cost cutting and select investments. In the long run, it hopes to reach a pre-tax margin of 20% by 2003.