Skip navigation

Compensation 2008: a bumpy ride?

or Register to post new content in the forum



  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
May 1, 2008 4:15 pm

I am a RR staff writer working on our annual compensation survey, and I want to see how advisors are doing.

  Has your compensation taken a hit with the market turmoil or do you expect it to? Why or why not? (some industry compensation experts say it is going to be a "bumpy ride" in 2008 across all channels (indies, wirehouses, regionals)...thoughts?)   How are you maintaining your status quo in this market? And if your compensation has not suffered why? What is the key to staying profitable in a down market?

If your an advisor who recently made the switch from the wirehouse to independent channel (or vice versa) because of compensation, why exactly did you make the move? Did it significantly improve your compensation (please quantify)? What were some of the major challenges?

Thanks, I appreciate your responses.
May 1, 2008 9:35 pm

went indy from the bank and compensation was 60% higher in only 8 months of production. will double it this year.

May 1, 2008 11:21 pm

As a relative newbie, I don’t believe that the conditions have affected my production.  If anything, prospects seem more willing to listen since they’re seeing their statements go down.  I have encountered people with cash who are “waiting for real estate to bottom,” to purchase investment properties.

May 2, 2008 4:36 am

I am a combination of fee based (35%) and commission (65%).  I have found business to be about the same as last year.  Keep in mind I have a good work ethic and even with the downturn in the market continue to bring in around 1 to 1.5 million a month (brought in over 2 in April).  I really think the answer to your question is a function of the advisor’s work ethic and the compensation model they use.  A fee only advisor will probably see a drop in compensation if they can’t replace the assets that decline in the market.  A commission based advisor might not have as difficult of a time keeping pace with last year if he/she has the inflow of assets or is transitioning client assets in the downturn.  Just my two cents.