Registered investment adviser (RIA) firms continue to reward top advisor talent with record compensation increases, even as organic growth across the industry slows. According to Financial Planning's review of the Ensemble Practice's annual compensation survey of more than 200 advisory firms, 2025 marks a period of "high profitability but very slow organic growth," driving firms to pay premiums for advisers who can bring in new clients or strengthen existing relationships.
Financial Planning notes that the findings highlight both strengths and vulnerabilities in the independent advisory sector. Experts warn that many RIAs have become too reliant on strong market performance to drive growth.
To safeguard long-term profitability, firms are being urged to align compensation with organic growth metrics. The survey emphasized that incentive structures should include marketing directors, operations staff, and business development officers—roles that enable scalable growth.
Experts further noted that successful firms foster a culture of delegation and strategic focus, prioritizing building deep client relationships while leveraging technology to maximize efficiency.
The report also identified a trend toward professionalizing leadership within advisory firms. While many RIAs have historically promoted from within, more firms are now recruiting experienced executives from outside the ownership ranks to serve as CEOs or managing directors. The survey concluded that executive leadership remains the most highly compensated position within advisory firms, reflecting both the complexity of their responsibilities and their direct impact on organizational performance.
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