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 2017 Financial Advisor compensation study conducted by On Wall Street, Edward Jones ranked No. 1 at the $2 M, $1 M and $600K levels of production for all wirehouse and small broker-dealer firms. And, we ranked #2 at the $400K production level.
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 compensation:Financial Advisor Trainee pay
Financial Advisor Trainees studying for industry licenses and completing training are paid an hourly rate for the hours they work.
Licensed financial advisors in the field are eligible to receive a supplemental salary (new financial advisor salary) for up to four years. Here are some details:
- Supplemental salary is based on a number of factors, including prior experience.
- Your supplemental salary amount will adjust as you move toward compensation that is based more on commissions as your business becomes more established.
- All financial advisors receive minimum guaranteed salary (MGS) in an amount determined by federal and state law. MGS does not fluctuate and is paid regardless of quality or quantity of work performed.
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.
Commission payouts start at 9-10% and increase up to 27-30% during your first four years as a Financial Advisor, based on certain criteria and tenure as a Financial Advisor. We anticipate financial advisors will increase their commission payout approximately every 12-18 months. In year 5, your commission payout will increase to 36-40%.
Bonuses and other compensation
You're rewarded for identifying new clients and deepening relationships. Depending on your production, bonuses and other variable compensation can make up a significant percentage of your overall compensation. You may be eligible for the following bonuses and other variable compensation:
- New asset compensation - cash bonuses paid monthly during years 1-5, based on the accumulation of new assets.
- 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%.
Bonuses and other compensation
You're rewarded for your hard work and, depending on your production, bonuses and other variable compensation can make up a significant percentage of your overall compensation.
- New asset compensation 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 profit-sharing. Over the past 10 years, the contribution has averaged, the contribution has averaged 4.39% of a Financial Advisor's total compensation (including bonuses). Your profit sharing retirement contribution (and potentially your profit sharing bonus) are 100% vested on day one.
Travel award 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 -- in the past 5 years, approximately half of our 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 $5,000 to $8,000 for two people or $15,000 for a Super Trip. The value of the trip is taxable.
All 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 firm12. As of December 31, 2016, more than 19,000 current and former 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.
12Limited partnership interests is a security and can only be acquired through a security offering that complies with the securities laws. The offering of limited partnership can only be made through a registered offering document or pursuant to an exemption. There is no assurance that the firm will engage in future offerings of limited partnership or that the offering criteria will be the same as in the past. Invitation to participate in any offering is at the discretion of the firm.
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