LPL's financial advisors saw an almost 1 percent payout increase in the second quarter of this year. According to AdvisorHub, the company attributes the growth to what they refer to as "seasonality "of advisors meeting higher revenue targets or tiers as the year progresses.
Matthew Audette, LPL's CFO, expects the payouts to increase even more in the third quarter. LPL's payout rate was 78 percent in the second quarter due to typical seasonality. Audette believes the payout rate will reach almost 88 percent, driven by the seasonal build in production bonus and the onboarding of CUNA Brokerage Service Inc., assets, and advisors.
According to LPL, while advisor payout rates increased, annualized revenue per advisor decreased slightly compared to last year. Annualized advisory fees and commissions per advisor are down 2 percent, totaling $308,000, compared to $314,000 last year.
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