Best advisor pay for $1M producers
We move on in our series on base compensation for advisors at wirehouses and regional or national broker-dealers with a look at what advisors producing $1 million in annual revenue can expect to make in 2025.
Scroll down to see where the participating firms stack up.
For last year’s data,
. To learn what industry experts expect in advisor pay this year,
This is the third installment in our annual four-part survey. The pay comparisons at other production levels in the survey include:
The information was collected by Financial Planning and then analyzed by compensation consultant Andrew Tasnady of
A note about this year’s analysis: A number of firms’ special pay policies were not taken into account because they do not fall on all advisors at a given firm evenly and thus vary too much to compare. Individual results can vary greatly based on the mix of business and policies at each firm.
For example, advisors’ pay can be nudged upward by special bonuses or downward by penalties such as discount sharing, small client limits and ticket charges.
Here are our assumptions for base pay (before special policies and contingent bonuses):
- 25% in individual stocks; 25% in individual bonds; 25% in mutual funds; 25% in fee-based (wrap accounts, managed accounts, etc.).
- Year-end basic bonuses are shown in deferred totals (“Deferred-YE”).
- Length of service is assumed to be 10 years.
- Assumes no effects from bonuses based on growth, asset-based bonuses or other behavior-based awards.
- Excludes voluntary deferral matches, 401(k) matches or profit-sharing contributions, unless otherwise noted.
- Does not include: T&E expense allowance, discount sharing or ticket charge expense assumptions, small household or small ticket policy assumptions, or value of any options awards.
*All of the information was provided by the companies featured and compiled by Financial Planning, with analysis by Tasnady & Associates. Data from Edward Jones reflects averages, and individual advisors’ experiences may vary.
Private Equity Fees Charged to Portfolio Companies Explained
Private equity fees charged to portfolio companies can be a complex and often misunderstood topic. Typically, these fees are a percentage of the company’s EBITDA, with a range of 1-3% being common.
Private equity firms often charge a management fee, which can be a flat rate or a percentage of the fund’s size. For example, a fund with $1 billion in assets under management might charge a 1.5% management fee, resulting in a $15 million annual fee.
One of the most significant fees charged to portfolio companies is the carried interest, which can range from 20-30% of the fund’s profits. This means that if the fund generates a $100 million profit, the private equity firm might take home $20-30 million as carried interest.
Private equity firms also charge transaction fees, which can range from 1-3% of the deal size. These fees are typically paid by the portfolio company.
https://www.financial-planning.com/list/best-advisor-pay-for-the-1-million-producer-in-2025https://www.cgaa.org/article/private-equity-fees-charged-to-portfolio-companies
