For 2021, Wells Fargo Advisors has boosted by $1,000 the monthly revenue hurdle that its brokers must reach before they receive a higher payout rate, the wirehouse disclosed Thursday.
It marks the first time the firm has changed the hurdle since 2014.
Also in 2021, WFA Private Client Group brokers, who number about 10,000, will see their payout level rise from a base of 22% to 50% if they meet the new monthly hurdle of total fees and commissions of $12,500-$14,250, which is up from $11,500-$13,250 this year. (Exact payouts depend on the achievement of key production and client-centric goals, according to the Wells Fargo.)
Meanwhile, brokers with less than $300,000 in the most recent trailing 12-month period and eight years or more in the industry “will have a calculated grid rate of 19% applied to eligible revenue up to the hurdle and a 47% rate applied to eligible revenue above the monthly hurdle,” the firm said.
However, the firm also added two new deferred compensation opportunities for brokers, Warren Terry, managing director of Wells Fargo Advisors, pointed out to ThinkAdvisor on Friday.
Brokers can now also qualify for deferred bonuses if they increase annual net asset flows from clients by a minimum of $2 million and reach full balance sheet sales goals including loans and other bank products, according to the firm.
The maximum net asset flow amount will be $250,000, while the maximum full balance sheet amount will be $100,000, it said.
The overall 2021 comp plan has been “well-received” by advisors and is “very well-balanced,” Richard Getzoff, head of Branch Network at Wells Fargo Advisors, told ThinkAdvisor on Friday.
As usual, the firm looks at compensation and strike a balance the firm’s “strategic priorities” with “major industry trends” and the investments it makes in its programs that are “all aligned around the client,” he said.