Dislocation and realignment in the industry over the past twenty months has clearly resulted in more talent being available than ever before, which would seem to suggest a buyer’s market.

But according to executive search firms, demand far exceeds supply for top producers and experienced wealth management executive who have leadership experience and have worked with ultra-high net worth clients.

“While still righting the ship from the effects of the volatile markets of 2008, leadership at the helm of the private wealth management firms is somewhat thin,” said Michael Castine, chairman, investment management, for Korn/Ferry International. “The trend seems to be focused on upgrading top executives from competitors or importing new talent from the institutional side of the house.”

“The most desirable segment of the market  are executives with leadership skills who have worked with clients with $10 million or more in investable assets,” said Jane Swann, a Korn/Ferry managing director heading the firm’s global wealth management division.

“Sales management is obviously highly valued, but do candidates also have to have enough true business management skills? That is the question.”

Experience

Experience is by far the common denominator in executive wealth management searches, headhunters say.

“The demand for really good experienced people is increasing, but I don’t see the supply of those people increasing,” said Steven Wade, partner at Knightsbridge Advisors, a New York-based executive search and consulting firm.

But firms looking to hire are also being more selective, said Tim White, managing partner for Kaye/Bassman International, an executive search firm based in Dallas.

“There’s a much higher degree of selectivity now. It’s not just all about production,” White said. “Client size has become very desirable, and firms who are hiring are looking for advisors who are working with clients with a minimum of $10 million.”

Firms are also looking for “a track record of success in other fields, such as sales or marketing, he added.

“Having a law degree, or being a CFP , or a CPA also enhances a candidates’ attractiveness,” White said.

Which isn’t to say the value of productivity had diminished when it comes to hiring.

“Demand has only increased for  big producers in the bad times,” said Danny Sarch, president, Leitner Sarch Consultants, an executive search firm in White Plains, New York. “Firms say ‘we want revenue, revenue, revenue.’ They want someone who can be accretive and can bring accounts with them.”

“There is no shortage of appetite for advisors with existing books of business right now,” White agreed.

And the market for talent for both top level executives and field-level advisors is expected to remain robust for the rest of the year.

Korn/Ferry’s Swann said she expected a continuing  ripple effect from new leadership teams at big players like UBS and Bank of America Merrill Lynch.

Wade noted that Wells Fargo is set to  build out its wealth management offices in New York and Boston, and White pointed to a major expansion by Barclays Wealth Management.

Compensation levels should also remain healthy, while not matching the frenzy of last year’s wirehouse bidding wars, say search  firm executives.

“I think cost of moving will go back to a more reasonable level,”  Swann said. “Right now we’re seeing about  two and half times book.”

“It’s ebbing a bit,” White said. “Advisors can expect about 100 per cent of their trailing 12 month production as an incentive and then 175 to 200 per cent of production going forward in addition to an earned pay-out of around 40 per cent.”

Wealth management firms who are hiring couldn’t be happier.

“We were trying to respond to and get ahead of anticipated growth for our business, and take advantage of an exceptional talent pool,” said  Jonathan Hochberg, president of Hillview Capital Advisors in New York, who just last week hired a senior executive from US Trust.

“What you’re seeing is not only people who are unemployed, but also people who are not happy or feeling at risk where they are,” Hochberg said. “And they are now willing to consider, or have to make a move.”