Hiring talent ranks as RIAs’ third-highest strategic priority, Charles Schwab reported in its 2024 RIA Benchmarking Study. Last year, 73% of firms with $25 million or more in assets under management hired staff, comparable to the previous year, and 73% planned to do so this year.
In an addendum to the study — the 2024 RIA Compensation Report, released Thursday — the firm released new details on how, and how much, RIA employees are compensated, across several different job categories.
Forty-four percent of firms in the study have an employee value proposition — what a firm offers employees in exchange for their talent and commitment. Compensation is central to a strong EVP, with competitive plans including financial rewards beyond base salary.
Schwab researchers found that across all roles, base salary represents 79% of total cash compensation on average, with performance-based incentive pay, compensation tied to revenue generation and owner profit distributions making up the balance.
Three-quarters of firms use performance-based incentive pay to link compensation with individual goals, team-based goals or firmwide milestones. Equity also helps align employees’ goals with those of the firm. A third of staff in the study hold equity.
Schwab designed the RIA Benchmarking Study to capture insights in the RIA industry based on survey responses from individual firms. It fielded its latest study from January to March, with self-reported data coming from 1,304 firms that custody their assets with Schwab and represent $2 trillion in assets under management.
See the accompanying gallery for compensation data for 15 RIA positions, according to Schwab's research. The pay ranges represent median pay at the 20th through 80th percentiles.
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