Wells Fargo will maintain its core compensation structure for financial advisors in its Private Client Group through 2026, marking the fifth consecutive year without changes to its primary cash grid or payout rates.
According to documents reviewed by InvestmentNews, advisors will continue to work under a $13,500 monthly production hurdle, earning a 50 percent payout on revenue above that threshold. Expense allowances and lending compensation rates remain unchanged, as does the overall grid structure.
InvestmentNews also reports that Wells Fargo is introducing new features for 2026. Advisors will now receive a recurring trail payout on checking account balances—15 basis points on the prior month's average daily balance for qualified new accounts, and 25 basis points if the account is linked to a personal credit line.
The firm is also enhancing credits for annuity business and increasing payouts for multi-generational accounts tied to households with at least $5 million in assets. Meanwhile, net asset flow awards remain steady: advisors earn 20 basis points for flows between $2 million and $10 million, and 50 basis points for flows exceeding $10 million. Deferred compensation remains capped at $2 million.
Lending compensation rates continue at 75 basis points for securities-backed lending and custom credit, and 35 basis points for mortgages. Advisors can still offer relationship-based discounts to clients, with up-front fees included for custom credit deals.
The compensation announcement follows a period of financial improvement for the bank. In the third quarter, Wells Fargo reported a $5.59 billion profit, or $1.66 per share, surpassing analysts' expectations. According to InvestmentNews, the firm's momentum accelerated after the Federal Reserve lifted its $1.95 trillion asset cap, a restriction imposed following the fake accounts scandal.
With the cap removed, Wells Fargo increased its medium-term return on tangible common equity target to 17 percent –18 percent, up from 15 percent. CEO Charlie Scharf told analysts that the firm is "now on a path to grow more broadly with the lifting of the asset cap."
Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.
