Wednesday, 06 November 2024 05:01

Advisor Incentive and Compensation Plans

Written by
Rate this item
(0 votes)

National brokerage firms are now sharing updates to financial advisors' compensation plans for 2025, a yearly event that often brings new requirements for earning bonuses or changes to how firms prioritize client segments. 

 

Merrill Lynch's 2025 plan, announced Wednesday, surprised many by largely maintaining the current structure, which has been rewarding advisors for onboarding new clients and encouraging existing ones to use Bank of America banking services. Merrill reported 5,500 new client relationships in the third quarter, with client assets reaching $3.5 trillion, an 18% increase from last year. 

 

The only notable adjustment for 2025 is a reduced banking growth award threshold, dropping from 55% to 35% for advisors operating without a nearby Bank of America branch. Other large brokerages, also introduced modest 2025 updates, such as reduced pay on smaller accounts and increased incentives for internal referrals, respectively. 


Finsum: These incremental changes reflect the industry's focus on stability while selectively encouraging growth and broader client relationships.

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top