Ameriprise CEO James Cracchiolo questioned how long rival firms can sustain what he described as "very high prices" to attract financial advisors, raising concerns that competitors may be overleveraging in the pursuit of talent.

According to ThinkAdvisor, Cracchiolo addressed questions about two large advisory teams departing Ameriprise and whether the firm would consider raising compensation or adjusting retention strategies. Ameriprise ended 2024 with roughly 10,000 advisors but has since stopped disclosing advisor headcounts.

Cracchiolo maintained confidence in the firm's current position, noting that Ameriprise recruited 90 advisors in the third quarter, which ended Sept. 30. "Our pipeline is quite good," he said. "Our advisor satisfaction is very strong. We feel very good about our position. But we always look at not just the short term, but the longer term. And that's where, maybe, people are getting a bit overlevered."

Drawing on decades of industry experience, Cracchiolo cautioned that the current momentum in advisor recruiting may not last indefinitely. "People forget that you go through downturns and changes in the market," he said. "Things always look rosy until they are not." His remarks suggest that the aggressive compensation and recruiting trends driving competition among advisory firms could face a correction if market conditions tighten.

ThinkAdvisor also reports that executives noted strong demand for Ameriprise's annuity products, including registered index-linked annuities, which continue to perform in line with expectations.

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