Wells Fargo Advisors (WFC) confirmed late Thursday that its core payout grid is largely unchanged for 2013. The biggest change is that the first $11,000 in monthly fees and commissions for which reps get the lower 22% payout, rather than the higher 50% payout, has been expanded to $12,000 per month.
Also, WFA says, it is adding a new way for reps to earn compensation above the grid, other than through long-term deferred compensation.
The award to be rolled out next year will be based on client acquisition, and WFA will receive it by reaching a net-asset-flows target or by obtaining the target for new “key households.”
Those FAs who qualify using the latter method can earn up to $100,000 and can elect to receive the total value of this award and their traditional deferred compensation upfront in cash (via a loan and bonus structure.)
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“This is the largest potential award we’ve ever had in our compensation plan,” according to a company source.
Experts say that Wells Fargo’s shifts should prove positive for its business results.