Transformation of Global Financial Advisor Compensation Models: What Lies Ahead?

An agile compensation plan for financial advisors is a critical element to asset growth as well as success in the marketplace, according to a new Aite Group report.

Boston, May 13, 2020 — Financial advisor compensation is the single largest line item of a global wealth manager’s or private bank’s overall operating expenses—and for good reason. To recruit and retain the best, these organizations need to remunerate their financial advisors fairly for the expanding scope of services they are mandated to undertake. It is one of the most scrutinized topics by firms’ executive management committees as firms seek to drive certain financial advisor behavior, keep operating expenses low, and scale in an environment of shrinking margins and increasing risk. The latest Aite Group report, Transformation of Global Financial Advisor Compensation Models: What Lies Ahead?, highlights measures certain firms are undertaking to structure attractive and profitable advisor compensation models that align with their long-term goals.

“Out of the ashes of COVID-19, wealth management practitioners will reevaluate and expand their compensation plans to better align client needs with the full range of services and value provided,” states Wally Okby, senior analyst at Aite Group.  

This report analyzes and crystallizes the drivers affecting global compensation models, surveys different compensation models up and down the wealth spectrum, and illustrates how digital is bifurcating the financial advisor landscape. The report is based on a 2019 Aite Group online survey of 400 U.S. financial advisors as well as qualitative phone and in-person interviews conducted during the second half of 2019 with business leaders at 46 wealth management firms across the Americas, Europe, and the Asia-Pacific. 

To request a press copy of this report or to speak with Wally Okby about this topic, please contact us at [email protected].

About Aite Group:
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.

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