Branch Manager Compensation
I am new to the branch manager roll and have some questions about compensation. To give you some background, myself and two others affiliated with a BD and run an independent office. I hold the S 9 & 10 and supervise the activity of the other two. I approve all trades. Additionally I pay the bills, complete payroll every two weeks, keep the books in Quickbooks, and handle any management type activities. Essentially I run the office.
My question is, what is the going rate to supervise other advisors in this platform? One produces around $500,000 and the other about $150,000 per year. Any help or advice would be greatly appreciated.
Based upon your description, you are half secretary/ half baby sitter. Do you do anything that adds value? In other words, do the producers produce more because you are there? If not, the going rate should be as little as possible.
You carry the risk! If they get sued you loose to!You can loose your practice by there mistake! Are you willing to take that risk? If so what is it worth to you?
[quote=Greenbacks]You carry the risk! If they get sued you loose to!You can loose your practice by there mistake! Are you willing to take that risk? If so what is it worth to you? [/quote] Plus, someone teaches you how to spell.
In a past life, I did what you are doing now, but unfortunately did not have a say on compensation.
I suggest you charge for compliance and supervision - 5-10% to the one who makes $150,000 and 3-5% to the one who makes $500,000.
For the administrative work that you do, I suggest that you draw a salary comparable to what a sales assistant or secretary would be paid in your area. Perhaps $40,000 or $50,000.
If the three of y’all are set up in a company, then the salary will be a deductible expense to the company which can help your tax situation.
I hope this helps.
Instead of starting a new thread I am going to resurrect this older one.
Our office had a guy leave recently. He left the business and some good accounts behind. The big guy is interested in bringing on a couple new guys. He approached me the other day with the offer of being a BOM of sorts. He asked me to basically run the office by saying "take care of things." He said he is spending too much time doing business management stuff and not enough time in front of A clients and prospects. I am already part salary and take on several roles in the office ie tech guy, investment question guy, random useless knowledge guy etc.
So to the question:
1. What are the various ways a BOM can be compensated?
2. What is an estimate of what each should be worth in regards to a ~100mm office with ~1mm GDC?
I have compiled a list but am not sure what I am missing but here is my list:
Monthly Branch Gross GDC Bonus-
Equity in Practice-
Personal Production %-
PP Increase if over $x GDC-
PP Increase if over x plans-
PP Increase if over x new HNW Clients-
Thanks for all feedback positive and negative.