Which firm gives the best payout for the $1 million producer?
On Wall Street's annual analysis of compensation plans aims to answer that question, providing a look at the starting payouts at wirehouse, regional and national brokerage firms for advisors at four different production levels. Our analysis is intended to provide advisors with an apples-to-apples comparison, stripping out behavior bonuses and penalties, in order to provide advisors with as clear-eyed a look as possible.
Scroll through to see this year's analysis of the $1 million category.
Click here and here to see our analysis of the $400,000 and $600,000 categories.
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.
Also 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.