Executive bonuses are big no-no these days, but what about broker retention bonuses? Wealth management at the high net worth level seems to be one of the few growth opportunities that banks have. So if you really intend to continue as a full-service bank, it would seem okay to pay up to retain and recruit top brokers. We noted that Morgan Stanley will offer retention packages worth 105 percent of a brokers' annual revenue. Bank of America also intends to retain its top Merrill Lynch brokers.

In the current climate, however, some are wondering if this is a good use of funds for banks that have received TARP funds, reports the Washington Post. We may hear more about this from Congress in the near future. Not all banks are like-minded on this. Wells Fargo, for example, has said it will not pay any broker bonuses. Whether that will spark some sort of exodus remains to be seen. 

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