Edward Jones & Co. has disclosed details about its newly established "profits interest" awards designed to retain its top advisors.

As of January 1, the firm issued those equity-like awards to 2,275 advisors, constituting approximately 12 percent of its advisor force of about 19,000. Introducing this kind of bonus is designed to share earnings with advisors without the typical buy-in requirements associated with becoming a general or limited partner in the firm. This retention strategy extends to recruits as well.

As reported by AdvisorHub, speculations from industry insiders and recruiters suggest that the recently introduced "profits interest" bonus could contribute to approximately a 3 percent increase in pay for eligible advisors. The funds for the awards will be derived from a portion of earnings that would traditionally have been paid to general partners and subordinated limited partners, excluding the limited partners' share.

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