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Wells Fargo Financial Advisor Salary
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Wells Fargo Lays Off Some Salary And Bonus Advisors
Wells Fargo is revamping its advisor compensation plan for next year, shedding some components that executives say make it too complicated.
“When the plan is complex, [advisors] sometimes don’t understand what behavior you’re trying to reward, so you don’t get the behavior you wanted to encourage,” says Wes Egan, head of partnerships, teams and succession. Wells Fargo Wealth Management Business Planning.
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Wells Fargo’s brokerage ranks are shrinking once again, continuing a downward trend that began in 2016 after the bank’s fake account scandal.
Wells Fargo Continues To Lose Advisors
The bank said it had 13,799 brokers at the end of the second quarter, down 427 from a year earlier, or a 3% loss. The number of employees has also decreased by 1,287 from the third quarter of 2016, when the bank counted 15,086 advisers.
The bank’s scandals drew the ire of regulators, which resulted in more than $1 billion in fines and the resignation of two top executives. The company is currently looking for a new CEO.
The low headcount comes amid stepped-up recruitment efforts this year. The bank, which offers hefty hiring bonuses according to recruiters, said the second quarter was the best for hiring since 2016. But Wells Fargo did not specify how many advisers it hired.
“We expect that productivity will continue to increase, even if the number of people continues to decline,” the spokeswoman said in a statement. “Due to an aging workforce, we expect continued retirements, which is why we launched our new advisor succession program last quarter, called Summit. “Interest in this program has been very strong, which shows that it was the right approach for the business .”
How Much Financial Advisors Make (financial Advisor Salary Revealed!)
The bank’s brokers, frustrated by bureaucracy and scandals, have moved to Wells Fargo’s competitors, mostly regional BDs and RIAs. More than 100 advisers have left the firm this year, according to FINRA BrokerCheck records. The departed brokers controlled more than $13 billion in client assets, according to statements issued by their new employers.
But even with fewer advisers, Wells Fargo’s wealth management business reported net income rose 35% to $602 million. The company attributes the decline in part to a $214 million impairment last year related to the sale of its ownership stake in Rock Creek Group. In the biggest of the two moves, advisors Sean Gressett, Chris Kellett and Donovan Leib left Merrill Lynch. Open a new practice with Wells Fargo Advisors Financial Network in Plymouth, Minnesota. They say more than $400 million in customer assets.
In a second move, Dathan Lumpkins left JPMorgan to start Lumpkins Private World Management in Niles, Michigan. According to Wells Fargo, it disposed of more than $111 million in client assets.
“We looked at everybody, and what we found was a major wire platform with the flexibility of an independent,” Kellett says, adding that his team was particularly interested in High Tower and Raymond James.
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Local demographics were also a factor. “Minneapolis is like Wells Fargo’s second headquarters,” Kellett says. “There’s a bank on every other street corner.”
Most of his customers use Wells Fargo for retail banking, so moving all their finances to one company is a major advantage, he adds.
The number of advisers fell in four of the last five quarters amid growing regulatory scrutiny, followed by several scandals in the bank, including opening accounts without the permission of clients. Overall, the company’s headcount fell by more than 300 year-over-year to 14,544 in the fourth quarter. Some industry employers say the attrition peak may not be over given new reports of new scandals.
A few weeks ago, Wells Fargo unveiled new federal requirements regarding possible sales misconduct in its wealth management division.
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“Everyone has to take their turn in the hot seat, and that’s not right,” Kellett says, adding that he’s spoken directly to FiNet’s top executives and is happy with what they’re doing to address any issues.
Kellett points out that this isn’t the first time wirelines have come under regulatory scrutiny, and his clients understand that. “Over the years, every bank has had its time in the news,” he says.
To reduce the loss of advisers, the bank has also made changes to attract talent from within. In February, Wells Fargo reduced the fees it charges employee advisors to transfer their practices to the bank’s independent broker-dealer. A smaller fee remains for advisors who exit their indie entity.
Some of the new hires have extensive industry experience. Gressett began his career with Merrill Lynch in 1995, according to FINRA BrokerCheck records. Kellett started in the industry in 2003 with Waddell & Reed before moving to Merrill in 2004, according to BrokerCheck.
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Lumpkins, meanwhile, began his career with Northwestern Mutual in 2004, then moved to Chase before landing at JP Morgan in 2012, according to BrokerCheck.
Recruiting Career Steps Employee Retention Wirehouse Advisors Wirehouses RIAs Going Independent Wells Fargo Advisors Financial Network JPMorgan Chase Merrill Lynch Maybe you’re just starting out in the wealth management industry and trying to create salary goals for yourself. Or maybe you’re a veteran financial planner looking to benchmark your compensation against the industry. Or maybe somewhere in between… The topic of how much financial advisors get paid is often confusing and the topic lacks accurate information.
For those of you new to my blog/podcast, my name is Sarah. I am a CFA® Chartered Financial Advisor Marketing Consultant. I have a weekly newsletter where I talk about financial advisor lead generation and practice management topics.
One reason the answer to this question is so vague is the lack of clear information, even from major reporting services.
Wells Fargo Checking Accounts
The Bureau of Labor Statistics has some “interesting” numbers. I had to do some digging to really answer the financial advisor salary question. According to the BLS, the median annual salary for personal financial advisors was $87,850 in May 2019.
By the way, if you’re looking to build your practice, a LinkedIn search is something you should consider. Check out LinkedIn posts for financial advisors. I also post weekly tips in my newsletter on these and other financial advisor marketing topics.
Let’s dig a little deeper into this. Below I will show you some data from the Bureau of Labor Statistics. Here’s what the BLS says about “personal financial advisors” as of May 2019:
I doubt that number is accurate – I’ll explain why in a minute – but first I want to say that I don’t know exactly how they define the term. As you can see quite vague – like “credit intermediation”?
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I doubt that the financial advisor salary figures are accurate because these are not terms that financial advisors use to describe themselves. And it is not clear what the term “credit intermediation” means. Most financial advisors have nothing to do with helping people get out of credit card debt. Do they mean that or they talk about lending, providing a line of credit, like an investment banker.
Can we really be sure that the BLS is tracking financial advisor salaries because we define them (the person helping you with your IRA rollover) by these numbers? It doesn’t seem like it.
“Securities, Commodity Contracts and Other Financial Investments and Related Activities.” It’s more than a portfolio