New bonus, pay cuts, grid stretches — it can be hard to keep pace with compensation changes across the industry.
To make sense of an evolving industry landscape, On Wall Street annually compiles an analysis looking at the starting payouts for advisors at wirehouse, regional and national brokerage firms. This analysis is comprised of four different production levels: $400,000, $600,000, $1 million and $2 million.
Scroll through to see compare and contrast compensation plans compare at the $600,000 level in 2019.
To see last year's compensation analysis,
Data was collected by SourceMedia and analysis conducted by Tasnady & Associates.
A number of special policies are not included here since they do not affect 100% of the population evenly and therefore are more haphazard to compare. Individual results can vary dramatically based on the mix of business and policies at each firm. For example, pay can rise from special bonuses and fall from penalties such as discount sharing, small client limits and ticket charges.
Assumptions for basic pay (prior to special policies/contingent bonuses):
- 25% in individual stocks; 25% in individual bonds; 25% in mutual funds; 25% in fee-based (wrap accounts, managed accounts, etc.)
- Year-end basic bonuses are shown in deferred totals.
- Length of service is assumed to be 10 years.
- Assumes no bonuses from growth, nor asset-based bonuses or other behavior-based awards.
Excludes voluntary deferral matches, 401(k) matches or profit-sharing contributions, unless otherwise noted.
Does not include: T&E expense allowance, discount sharing or ticket charge expense assumptions, small household or small ticket policy assumptions, or value of any options awards.
