Wells Fargo Reportedly Will Increase Bonus Cap for 15,000 Advisors
Wells Fargo & Co. will increase potential bonuses for its more than 15,000 financial advisors in 2014.
This is part of an effort on the part of the largest U.S. brokerages to restructure pay plans in order to reduce turnover and recruiting costs.
The new plan gives advisors more ways to reach targets and provides lower producers incentives to improve. Brokers bringing in revenue of at least $2.1 million can earn a bonus of 8.5 percent to 11 percent. Advisors who produce $300,000 of revenue could receive 8.25 percent, a raise from 2 percent in 2013. The firm also increased expense allowances for some brokers.
Stock and bond commissions, annual client advisory fees, loan credits and annuity fees are among the revenue items that contribute to broker compensation, according to the company’s policies. Bonuses depend on meeting a series of targets tied to different products and assets set by Wells Fargo. The firm will offer deferred cash awards that vest over five years.
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