Experienced Financial Advisor Compensation
Work hard and be rewarded
At Edward Jones, your earning potential is without limit
Edward D. Jones Sr. founded the firm in 1922 on the principle that every employee should be compensated fairly for his or her contribution, and our partnership structure reflects this philosophy today. We believe those who share in the work should share in the rewards.
In fact, we've been recognized for our competitive compensation. In the 2016 Financial Advisor compensation study (pdf) conducted by On Wall Street,* Edward Jones ranked No. 1 across all production levels as compared to wirehouses.
As an experienced Financial Advisor, your compensation is designed to support you as you transition to Edward Jones and reward you as you serve clients. Your years of experience, assets under care and production will determine your compensation.
If you have less than three years' experience or less than $30 million in portable assets under care >
You may be eligible for the following commissions and bonuses:
Because you'll have the autonomy to manage your own practice, you're in control of your compensation. We provide a framework for expected performance at various levels of production, but there are no caps or limits - your compensation is directly tied to the effort you put in.
During your first three years as a Financial Advisor, commission payouts will vary based on your tenure as an Edward Jones Financial Advisor, the state in which your branch is located and the type of investment. Commission payouts are generally as follows:
- Year 1: 18%-20%
- Year 2: 22%-25%
- Year 3: 27%-30%
- Year 4 and beyond: 36%-40%
You're rewarded for identifying new clients and deepening relationships. Depending on your production, bonuses can make up a significant percentage of your overall compensation. You may be eligible for the following bonuses:
- New asset bonuses - cash bonuses paid monthly during years 1-5, based on the accumulation of new assets.
- Milestone bonuses - cash bonuses paid every month during years 1-3 to Financial Advisors based on overall performance. Financial Advisors whose performance is 100% of standard or greater may receive enhanced milestone bonuses.
- Profitability bonuses earned and paid by trimester, based on branch and firm profitability.
If you have more than three years' experience, more than $30 million in portable assets under care and trailing 12-month production of $250,000 or greater >
You may be eligible for a customized transition package. Our transition packages provide guaranteed earnings without contractually binding you to a new firm for the long-term.
We'll provide significant financial support during your first year of employment based on your trailing 12-month gross production, giving you the freedom you need to establish your Edward Jones practice and maintain a stable income while transitioning clients.
Because you'll run your own office, set your goals and drive commissions, you are in control of your compensation. Commission payouts range from 36%-40%.
You're rewarded for your hard work and, depending on your production, bonuses can make up a significant percentage of your overall compensation.
- New asset bonuses in year one, paid monthly
- Deferred bonuses paid in years 2-6 at year-end, based on the assets gathered in year one
- Profitability bonuses based on the profitability of the firm and your individual branch office. These bonuses are supplementary compensation designed to reward Financial Advisors over and above their regular pay if and when their efforts produce a bonus-eligible profit for their branch. Eligibility begins at month 13.
Profit and loss statement
Edward Jones Financial Advisors operate individual branch offices. This business model provides more freedom and flexibility for those who are seeking an alternative to the multi-advisor office setting that's typical across the industry. This also means our Financial Advisors benefit from the profit and bonus opportunities they create – there are no managers in the branch who take a cut.
Each Financial Advisor receives a branch Profit & Loss Statement, which includes all revenue and expenses attributable to the Financial Advisor's branch, minus an allocation for firm support.
Branch expenses include:
- Financial Advisor earnings
- Branch staff payroll
- Occupancy expenses
- Equipment and access charges
- Telephone, postage, licenses, etc.
Each Financial Advisor's branch profitability bonus is based on a combination of the firm's profit and the branch's profit. Each branch's profit is determined by a simple formula:
Branch profitability bonuses are calculated and paid on a trimester basis, based on the firm's current bonus level and the branch's individual profit.
Regardless of your years of experience or level of production, you also may be rewarded through the firm's profit sharing and travel program.
Your compensation rises with the firm's success. And profit sharing is just that -- sharing profits. Giving back has always been part of the Edward Jones culture.
Each year, we share a portion of net profits in the form of a profit-sharing contribution to your retirement account. Historically, the contribution has averaged 4.45% of a Financial Advisor's total compensation (including bonuses) over the previous 10 years. You're 100% vested on day one.
Incentive travel program
When you serve clients deeply and help them work toward their financial goals, you can earn world travel. Our Travel Awards Program recognizes and rewards those who build strong books of business. These trips promote knowledge-sharing in an atmosphere where you can relax and recharge. And these trips aren't reserved for just the top few advisors -- historically, approximately half of our 14,000+ Financial Advisors have qualified for our travel program.
There are two six-month qualification periods each year. You also have the flexibility to combine two trips into one "Super Trip." Trip values typically average $4,400 to $8,000 for two people or $10,000 for a Super Trip. The value of the trip is taxable.
All incentive trips include spouses or domestic partners and, many trips welcome families, too. Some recent trips have taken our Financial Advisors to:
- Venice, Italy
- Bali, Indonesia
- Athens, Greece
- Dublin, Ireland
- Turks & Caicos
In addition to your compensation package, Financial Advisors in the past have had the opportunity to invest in Edward Jones' parent company, The Jones Financial Companies, L.L.L.P., a Missouri limited liability limited partnership ("JFC"). Historically, limited partnership offer selection has been based on the minimum requirements of running a profitable and ethical branch as well as minimum tenure requirements. After meeting this basic criteria, other considerations have been leadership and the Financial Advisor's assistance to others in his or her region and the firm. As of December 31, 2015, more than 20,000 Edward Jones associates are limited partners of JFC.
*On Wall Street, April, 2015. In super regional and regional categories, Edward Jones was No. 1 for production levels $2 million, $1 million and $600,000. Past performance is not a guarantee of future results. Individual Financial Advisor experiences vary. Edward Jones has the sole discretion to change its compensation policies and practices at any time.
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