Merrill Lynch will keep its core compensation grid unchanged in 2027 but will require advisors to meet higher growth targets to qualify for its growth award, according to AdvisorHub. The firm will also introduce new incentives tied to managed assets, deposits, and lending as it continues to encourage advisors to deepen client relationships and expand business.
Beginning January 1, Merrill will raise the strategic flows requirement for its growth award from $5 million to $7.5 million. Advisors must also add a net four households, up from three, according to two sources familiar with the firm's plans.
The award provides advisors with a cash bonus for attracting new client assets and accounts. AdvisorHub reports that the vast majority of Merrill advisors qualified for the award last year.
Although Merrill will raise the growth award's qualification requirements, it will replace its Elite Award with three separate awards that offer a 50 percent premium on an advisor's growth award payout.
Previously, advisors could earn the Elite Award by generating $150 million in strategic flows. Under the 2027 plan, advisors can qualify for the new awards by generating at least $50 million in managed flows, $10 million in checking and savings flows, or $10 million in lending flows. Advisors can earn multiple awards if they satisfy the requirements in more than one category, according to AdvisorHub.
One source told AdvisorHub that Merrill expects more advisors to qualify for at least one of the new awards because the individual thresholds offer more attainable paths than the former $150 million requirement.
Merrill will also introduce a separate Lending Growth Award in 2027. The annual cash bonus will depend on an advisor's net new lending flows for the full year. Advisors who generate at least $10 million in net new lending flows can earn 10 basis points on those flows. Those who generate at least $25 million can earn 20 basis points, according to the sources.
Merrill's new lending incentives build on changes the firm made to its 2026 compensation plan. Last year, Merrill expanded its banking growth award to pay 10 to 25 basis points on increases in client deposits. The firm also broadened its growth award to include credit deposits and money market funds.
Merrill will leave unchanged its 2026 policy that raised the threshold for defining a small household from $250,000 to $500,000. AdvisorHub previously reported on that change, which doubled the minimum asset level for the classification.
The firm's limited changes to its core compensation structure also align with its broader effort to grow advisor headcount without alienating its existing workforce. Merrill last increased its grid requirements in 2023. According to sources cited by AdvisorHub, the current plan continues to drive strong growth, with 90% of advisors on pace to deliver their best year.
Industry compensation consultant Andy Tasnady, who received a briefing on Merrill's changes, expects advisors who attract new assets or expand their clients' use of banking services to welcome the 2027 plan.
Merrill's approach differs from the adjustments other major wirehouses have announced for 2027.
Morgan Stanley, the first wirehouse to release its 2027 compensation plan, increased revenue-based thresholds by approximately 10 percent across its core production-based payout grid, according to AdvisorHub.
UBS kept its core payout grid unchanged but enhanced a retention program it introduced in March. The firm also made certain growth awards and other incentives easier to earn as it works to reduce advisor departures.
AdvisorHub reports that Wells Fargo Advisors has not yet announced its 2027 compensation plan.
Financial Advisor Transitions consults with advisors nationwide regarding employment transition options and strategies to preserve and protect their practices during any transition.
