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Thinc sets out its long-term incentive deal

Lower-earning advisers will be moved into network.

The Thinc Group will move advisers from its national IFA arm into its network if they fail to produce at least 50,000 turnover a year.

The adviser group unveiled its long-term incentive plan to delegates at its annual conference at Birmingham’s International Convention Centre on Monday following its recent acquisition by Axa.

Group distribution director Gregg Taylor predicts 40 per cent of the 350 advisers in the network will move from the network to the national, as it is more profitable. Currently, 300 advisers are with the national arm and 350 the network.

Taylor said if the group achieves 62 per cent of its original business targets by December 31, 2009, the LTIP – agreed with Axa – will be met.

New business turnover points will be awarded for every pound of gross income earned.

Each mortgage case, commercial transaction, secured or bridging loan or general insurance case written, irrespective of premium level, will receive 500 points. Other contracts including wills, conveyancing and agency transfers will be worth 100 points.

As a recruitment incentive, any adviser recommending a new joiner will get 2,000 points plus 1,000 cash.

Advisers earning 125,000 gross income a year will have their NBT points increased by 25 per cent while advisers earning over 175,000 will see their points increased by 50 per cent.

The total points over the three years will be split proportionately between the advisers, giving a percentage of the LTIP fund.

A pot of 100m will be reserved as a gesture of gratitude to founding advisers and management team members, which will be split if the maximum LTIP figure is reached.

Taylor said: “All contracts will be in place by the end of the first quarter of 2007.”

See Thinc’s retirement deal

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