Compensation costs for RIAs that had more than $250 million in assets under management represented 71% of revenue at the median in 2018, Charles Schwab reported this week.
Some three-quarters of firms in Schwab’s 2019 Benchmarking Study said they planned to add employees in the next 12 months. And 42% of firms recruited staff for open positions from other RIAs in 2018.
Schwab said release of discrete compensation results from the larger study was intended to help industry leaders develop strategies for compensating, motivating and retaining staff by comparing their approaches with those of their peers.
The 2019 benchmarking study, fielded in the first quarter of last year, comprised self-reported data from 1,310 firms, 984 of which also participated in the compensation portion of the study.
The study found that base salaries for client account management, sales and marketing roles ranged from $57,000 to $146,000 at the median, and total cash compensation from $62,000 to $203,000.
Total median cash compensation, including owner profit distributions, was $62,000 to $231,000.
Seventy-six percent of client service associates, those who provide non-advice-related support to clients, received performance-based incentive pay, more than those in other positions.