Executives at Wells Fargo Advisors on Tuesday introduced the 2023 compensation plan for its 12,011 financial advisers, in what its executives believe will be seen as a continuation of the effort to simplify pay at the firm and reward financial advisers.
For example, in the past Wells Fargo Advisors has had multiple hurdles for its private client group advisers; last year, the firm changed that to a single monthly target of $13,500 to use as a benchmark for adviser pay. The below-hurdle grid rate is 22%, or 22 cents per dollar of revenue. Revenue above that rate will generate a 50% grid rate, or 50 cents per dollar of revenue, for the adviser.
As an example, if a financial adviser produces or generates $100,000 in eligible revenue in a month, he or she is paid 22% on the first $13,500, which equals $2,970. The adviser is paid 50% on the additional $86,500, or $43,250. That totals $46,220 in compensation for the month.
Sol Gindi, who was promoted in May to head of Wells Fargo Advisors, noted in an interview Tuesday that the firm is revealing the pay plan in early November this year rather than wait until mid-December, an indication it wants the pay plan to be viewed with less mystery.
"We're talking to everyone a whole lot earlier this year," Gindi said. "We really think we have a good plan in place. It's more streamlined with less changes."
The plan includes enhanced compensation targets for individuals and teams working in both the traditional private client group or as a bank adviser.
Deferred compensation will be based on four components: revenue, length of service, net asset flows and the full balance sheet.
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