Stifel's recruiting loans fall more than 13% to $653 million

Stifel's recruiting loans to advisors fell more than 13% year over year to $653 million at the end of the third quarter, from $751 million, according to its quarterly regulatory filing, first reported by AdvisorHub.

The St. Louis-based firm's $653 million balance covers cash awards, loans and advances to roughly 2,000 brokers and other employees.

For an advisor weighing an offer, the balance is a stock, not a flow. It falls when earlier loans vest and when hiring slows. AdvisorHub reported both at Stifel, so the figure is an imperfect guide to what an offer signed today looks like.

Ameriprise's forgivable loans to advisors rose 29% to more than $2 billion in the same quarter, as Private Wealth Daily previously reported, after the firm said it adjusted offers in a competitive hiring market. Dividing Stifel's total by its roughly 2,000 brokers gives about $327,000 per advisor, against about $200,000 per Ameriprise advisor, though Stifel's total also covers awards to non-advisors.

Stifel's hiring has cooled alongside that balance, with 90 advisors added in the 12 months to September, including 28 experienced advisors who produced $19 million in annual revenue at their previous firms. AdvisorHub reported that figure was down from $30 million in the second quarter.

Raymond James does not disclose a comparable loan total, but its recruiting and retention compensation rose 28% to $125 million in the quarter, a period of record recruiting results, according to AdvisorHub. Its cash and equity awards vest over five to 10 years.

Chief Executive Ron Kruszewski has said Stifel takes a conservative approach to offers despite a competitive environment, and AdvisorHub reported that in January he floated increasing the recruiting budget. The fourth-quarter filing will show which way the balance moves.