Hurley: But won’t five times’ growth require a big number of acquisitions?

Thomasson: Yes. However, over the last two decades, 95% of our very best decisions have been “no” and 3% have been by accident. So we have grown to $24 billion on 2% by saying “yes.” We will say yes to thoughtful people acquisitions.

Hurley: Where are firms going to get the people that they need in the future?

Thomasson: From other wealth managers.

Hurley: You don’t believe in developing homegrown talent?

Thomasson: We’re not in the training business. We mentor, we coach, we help them get better, but for us it’s helping an “A” player get better, not a “B+” player getting better.

We try to only hire people who are “A” players. After we interview someone, we look at each other and say, “Is this person an ‘A’ player?” If not, let’s encourage them to go someplace else. Certainly, we have not been 100% accurate.

We don’t think it’s possible to successfully take a junior partner to a senior partner because it takes too long. The present value calculation is horrible.

Hurley: So the upcoming war in the industry is not going to be for clients?

Thomasson: It totally will be for people. It has already started, and the unrest of people at their current employers is going to get nuclear.

Hurley: And they will come from other wealth managers?

Thomasson: Absolutely. One hundred percent.

Hurley: How do you not change your culture while vastly increasing the numbers of employees?

Thomasson: It starts at the top and must be reinforced daily by every action and the firm’s cultural integrity.

Hurley: What will firms need to do to get these bodies?

Thomasson: Of course it is first culture, but also compensation and wealth creation. Compensation enhances culture. Senior relationship people need to have the opportunity to build wealth comparable to their clients’. They will also have to want to be an owner and participate in the governance of the organization.

Hurley: You will have to offer an opportunity to build $20 million of wealth?

Thomasson: Yes. That opportunity is essential, because if I’m a 62-year-old client worth $20 million, do I want to get my advice from somebody who’s got an IRA, a $50,000 savings account, and makes $150K to $200K? That’s probably not working for me. But right now this wealth gap is massive, industrywide.

Hurley:  This suggests a labor stratification between firms.

Thomasson: The labor stratification will be dramatic.

Hurley: And won’t the cost of getting talent force margins down?

Thomasson: I don’t think margins are going to go down for ultra-high-net-worth firms if they get better at delivering their value proposition and the rationale for their fees while scaling their businesses properly.