Although 44 percent of financial planning professionals are very satisfied with their jobs, only 26 percent are very satisfied with their compensation. Perhaps that explains the next stat: 26 percent of staff say they plan on leaving their firms in the next two years.
These are some of the key findings from the 2015 Trends in Adviser Compensation and Benefits Study by the FPA Research and Practice InstituteTM (RPI) and Financial Advisor IQ. These findings were revealed at FPA Retreat 2015.
The study surveyed 694 planning professionals across the country, including advisers across all business channels, sizes and models, with a margin of error of +/- 3.72%.
Key Findings Include:
- Median compensation (from all sources) ranges between $50,000 and $249,000, depending on the role.
- Firms use a range of compensation structures, including bonuses and incentive pay, and these are likely to differ by role to drive different behaviors.
- 63% of respondents offer incentive pay based on new revenue, 56% based on new assets and 32% based on client satisfaction.
- 77% of firms offer some form of benefits, but benefits packages vary widely.
- 60% of firms anticipate increasing their investment in compensation in the next 12 months, and 22% say they will increase their investment in benefits.
Compensation Snapshot Total Median Comp: (including base, bonus, incentive, and “other” pay; “other” could include such things as options or cashed-out equity)
Senior adviser or planner: $170,000
Junior/associate adviser or planner: $60,000
Non-adviser management: $81,000
Support staff (technical, admin): $50,000
Download the full study at: www.OneFPA.org/2015CompensationStudy.
Journal of Financial Planning