Wells Fargo Advisors' executives recently told advisors to expect only a few changes to their 2023 compensation plan as more substantial changes the company made last year have improved retention and recruiting.
According to AdvisorHub, the company usually announces its new compensation plan in December but chose to unveil its plan early to assure advisors that there would be "no surprises."
In 2022, Wells consolidated monthly pay hurdles for traditional advisors to a single threshold and created bonus opportunities for advisors that grew revenue, client loans, and assets under management (AUM). The newly unveiled plan will leave the single $13,500 monthly production threshold that advisors must reach to jump from a 22 percent payout to a 50 percent payout unaltered.
Additionally, a new small account policy will decrease payouts on sub-$100,000 accounts to a ten percent flat rate. Advisors will continue to be compensated on a 20 percent revenue from households with $100,000 to $250,000.
According to Wes Egan, head of human resources and advisor compensation, Wells Fargo is also creating an additional way for advisors to qualify for an "enhanced" 50 percent payout on all revenue. The existing plan allows advisors or teams generating more than $2 million in annual revenue to qualify for the enhanced payout if they grow by at least $150,000 in revenue annually.
Next year, advisors can discount commissions to zero dollars in their accounts or those of other Wells Fargo employees. The company also is eliminating revenue credit reduction on trust relationships which generated more than $200,000 in fees annually. Wells also announced that its deferred compensation plan would remain largely unchanged.
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