It’s no surprise that compensation is a leading factor when financial advisors are considering changing firms. In the AdvisorHub study on brokerage-firm culture, done in partnership with Edward Jones, financial advisors said compensation was the top reason they’d consider leaving their current firm. While going independent is tempting for financial advisors looking to make a change, it may present considerable compensation uncertainty.
In a competitive landscape, recent enhancements to Edward Jones’ compensation structure are giving experienced financial advisors a strong reason to consider moving their practice to Edward Jones. The difference? Edward Jones compensation plans are designed to set up experienced financial advisors for success, individually evaluated and providing a competitive salary based on the assets they bring to the firm.
Transitioning experienced financial advisors can own their success on day one and avoid the compensation risk of independent practice. It’s the best of both worlds – support from a home office and autonomy to grow their practice independent of firm sales goals. Edward Jones financial advisors run their own offices, set their own goals and partner with clients on achieving their financial and life goals – and compensation reflects success in those efforts.
There are no loans in the Edward Jones compensation package. No upfront or back-end payments requiring certain production levels. No claw backs and financial advisors are not contractually bound to the firm for the long term.
As a private partnership, Edward Jones has long held a transparent compensation philosophy – with less complexity and fewer modifications compared to the industry – that helps financial advisors uniquely realize their potential. First and foremost, compensation is commensurate with a financial advisor’s experience and practice maturity. New plan features are designed to optimize the financial opportunity and are tailored to support an individual’s unique practice. Key features include:
12 Months Salary: The firm will provide salary for the first 12 months based on the portability of the financial advisor’s previous assets. All commissions and fees are additive, so it closes the gap between prior year income and the commissions earned during the transition.
New Asset Compensation: Edward Jones will compensate financial advisors for new assets gathered and brought to the firm for the first 24 months.
Bonus Compensation: Financial advisors are eligible for profitability bonuses on their start date, which are paid on a trimester basis.
No “Loans”: There are no loans in the Edward Jones compensation package. No upfront or back-end payments requiring certain production levels. No claw backs and financial advisors are not contractually bound to the firm for the long term.
This “no ceiling” compensation approach is why some come – and stay. In fact, since 2016, approximately 80% of financial advisors who joined Edward Jones from other firms remain today.
For experienced financial advisors considering a transition, Edward Jones balances freedom and flexibility with the certainty of a salary. Edward Jones financial advisors are rewarded for their hard work in the short-term and provided with the support they need to reach their full potential long-term. Learn more about compensation for experienced financial advisors at Edward Jones.