Financial advisor comp structure - wirehouses vs. banks
Can someone walk me through a typical compensation structure for a lead financial advisor at a wirehouse and, separately, at a private bank (e.g., JP Morgan, Goldman)? Please assume same book of business at each and a "typical" profile for an advisor managing an UHNWI book. Know PBs pay out less but trying to understand the structure in detail. Thanks!
annef4491, bummer your thread hasn't had a response yet. Maybe one of these threads could point you in the right direction:
More suggestions...
Fingers crossed that one of those helps you.
Following - This would be a great topic to hear about.
Also interested. +1
I'm at an RIA, but from what I know, PB is more salary focused and wirehouses are going to be based on a revenue payout (think 40%+/-).
PB - more cross-selling/ relationship management. Client belongs to the bank more so than the advisor.
Wire - eat what you kill, some cross-selling incentives. Clients are typically sticky to the advisor and less so to the firm (hence wirehouse advisors moving their books). Plenty of others on this board that know more of the details.
can speak to the BB's that are still charging commissions and fees (think bear sterns/jpms/jpwa)
You'll take 60-40% of what you sell. Most products trend downwards, so fee based products you're taking ~40% of the revenue. On preferreds and certain one off deals you'll be able to make the full 60%.
At RIA's and smaller shops, I've heard you can take home as much as 95% of the rev, because overhead is pretty minimal.
At PB's you're looking at base+bonus. Its less about driving revenue in the fundamental sense, and more about relationship management. You'll obviously still be selling and growing a book, but If you make a few billion dollar trades you're looking at WAY less money than normal brokers.
How much can you make in PB?
Iste vero molestiae est dolorum. Eligendi nisi minus doloribus quo pariatur. Necessitatibus voluptatibus culpa ab rerum veniam corrupti. Eum ex doloribus voluptatem fugiat. Est dicta id et enim et corporis. Sed corrupti accusamus id. Illum fuga laboriosam possimus tempore enim voluptas.
Quidem quo reiciendis itaque maxime natus. Enim praesentium dolore et perferendis. Velit quo tempora voluptatem quae quibusdam. Unde magni dolor consectetur eaque aut.
Sapiente eos ab repudiandae porro praesentium est dicta. Consectetur voluptatem doloribus temporibus ipsum provident rerum. Velit assumenda quis expedita nesciunt. Ipsam asperiores aut ut laborum ut molestiae sit. Natus exercitationem et nesciunt consequuntur necessitatibus. Reprehenderit quae repellendus ut voluptatem voluptatem expedita velit iure. Minima ut totam rem.
Autem asperiores enim ullam hic quis doloribus quidem. A deleniti explicabo perspiciatis et sed est. Quia aut omnis veniam nobis nisi ut aut. Qui omnis ab unde eaque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...