Subscribe

Which adviser designations yield the highest pay?

Advisers with this credential averaged at least 20% more compensation last year than those without it, an InvestmentNews survey shows. (See also: Independent advisers' growth is slowing)

The extra sweat it takes to earn a chartered financial analyst credential apparently pays off for financial advisers in terms of added compensation.
Lead financial advisers who have attained a CFA designation earned on average a median $147,743 in base salary and $30,000 in incentive-based compensation last year, 24% more than the total compensation for those with the certified financial planner mark and 23% more than advisers who also are certified public accountants, according to the 2015 InvestmentNews/Moss Adams Adviser Compensation and Staffing Study released Sept. 7. Lead advisers do not include firm owners or partners.
Those lead advisers with the CFP mark earned a median $115,000 last year, plus $27,750 in bonuses. Those with a CPA earned $112,250 and a median $32,330 in incentive-based comp, the survey of advisers found.
Lead advisers who have passed the Series 7 examination made about $102,000 in median salary and $20,500 in bonus, the survey of about 350 financial advisers found.
(More: Independent adviser growth slowing)
The quantity of designations doesn’t appear to move the needle like the type of designation does.
With a single designation, lead advisers earned a median $115,000 in salary, while those with two designations earned $105,824, according to the survey, taken April through June 2015. Both categories earned $25,000 to $28,000 a year in bonuses. However, those with no designations earned an average $100,000 base salary and $20,000 bonus.
The CFP mark was the most popular for lead advisers, with 52% having this certification, compared to 11% for CPAs and 10% for CFAs.
About 44% of service advisers, a lower-level staffer, had CFP designations, while about 58% of practicing partners have CFPs.

Lead adviser pay
Source: InvestmentNews Data

(More: The makeup of independent advisory firms has fundamentally changed)
Of chief investment officers, the second-highest paid salary position in the InvestmentNews report, 43% are CFAs, 37% are CFPs and 12% are CPAs. Their median salary in 2014 was $200,000, while the median chief executive officer salary was $220,000 last year, according to the survey.

Learn more about reprints and licensing for this article.

Recent Articles by Author

Celebration of women fostering diversity in the financial advice profession

Honoring the 2020 and 2019 InvestmentNews Women to Watch for their achievements and dedication to improving the financial advice profession.

Merrill Lynch veteran Michelle Avan dies

Avan recently became SVP and head of global women's and under-represented talent strategy, global human resources for Bank of America.

Finalists for Women in Asset Management Awards announced

More than 100 individuals were named on the short list for awards in 16 categories; the winners will be announced on Sept. 9.

Rethinking advisory fees means figuring out value

Most advisers still charge AUM-based fees, but that's not likely to be the case in 10 years, according to Bob Veres. Some advisers are now experimenting with alternative fee models.

Advisers need focus on growth and relationships, especially now

Business development expert Robyn Crane believes financial advisers need to be taking advantage of this unique time.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print