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Keller Williams rescinds changes to its profit-sharing program

May 19, 2024
in News
Keller Williams rescinds changes to its profit-sharing program
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Keller Williams’ International Association Leadership Council (IALC) has rescinded the recent changes to its profit-sharing program, according to an announcement on Friday.

The changes were first announced in August 2023 during KW’s Mega Agent Camp event. Under the changes, the company cut profit-share distribution for vested “former” KW agents — those who joined the company before April 1, 2020, and left for another brokerage — from 100% to 5%. Prior to this change, vested “former” agents benefited from a 100% profit-share distribution even after their departure. 

But the changes did provide an incentive for agents to return to Keller Williams. Former agents who returned to the company within six months of the effective reduction date would have their profit share restored to 100%. These changes had been slated to go into effect on July 1, 2024.

According to the firm, Mark Willis, the CEO and president of Keller Williams Realty and chairman of the IALC, made a formal recommendation during a recent meeting to rescind the current policy related to vested and competing former KW agents. 

The IALC, which is comprised of representatives from associates, market centers and regions in the U.S. and Canada, typically votes on policies at an annual “Family Reunion“ event, typically scheduled in February, and at the Mega Agent Camp in August or September each year. But Willis called for a special vote on this issue. 

“Today, in an unprecedented meeting, the International Associate Leadership Council (IALC) voted to rescind previously proposed changes to our profit-sharing program. The vote, which required everyone to take a close look at our values and the structure of our business, wasn’t taken lightly,” Willis said in a statement.

“The vote passed with an overwhelming majority. The outcome serves as a reflection of our commitment to integrity, teamwork, and finding a win-win for all involved. With today’s vote, the IALC chose to reinforce our profit-sharing model as a cornerstone of everyone’s collective success.”

Over the past several months, the impending changes to Keller Williams’ profit-sharing program have made the firm the target of more than a dozen class-action lawsuits, all filed by former Keller Williams agents.

In these lawsuits, the plaintiffs argue that according to the Keller Williams policies and guidelines manual, the brokerage did not have the right to terminate the profit-share program. They also claim it didn’t have the right to amend any aspect of the program’s method of calculating a market center’s profit-sharing contribution or a recruiting sponsor’s profit-sharing distribution, except as specifically directed by the IALC.

Lastly, they claim that any amendment made to the profit-sharing program was only allowed to be prospective and not retroactive. 

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Copyright for syndicated content belongs to the linked Source : HousingWire – https://www.housingwire.com/articles/keller-williams-rescinds-changes-to-its-profit-sharing-program/

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