Strategy

US Poaching Wars Push CRMs into HNW Category

Matthew Smith New York 10 October 2007

US Poaching Wars Push CRMs into HNW Category

Poaching wars for talent in the high net worth client market in the US is set to intensify, with salary increases pushing some relationship managers into the very client category they are servicing – according to a new report presented at a wealth management conference in Boston. John Stadtler, a partner at Pricewaterhouse Coopers, told the Reuters Wealth Management Summit that relationship managers might soon move into the category of ultra wealthy with $50 million or more to invest, as demand for talent in the segment continues to rise. Mr Stadler told the conference that salaries are rising quickly and that companies are using bigger bonuses to woo and keep managers. He said, no matter how good the company's brand, "it is the individual who delivers the firm and they are in high demand," according to Reuters. Part of the problem may be that the pool of qualified relationship managers is not large and it is tough to train them quickly in house, Stadtler explained to the conference. Indeed, he said, only about one fifth of chief executives amongst the hundreds of wealth managers polled by PwC for the new report believed their organizations are good at attracting and retaining the best client relationship managers.

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