Many firms promote 90% payouts to recruit experienced advisors. What may be less clear is that these firms offer very little support for that level of compensation, and that, on a net basis, compensation is thus much lower. Waddell & Reed has struck a unique balance, offering very competitive compensation with a level of support that allows you to focus on why you got in the business in the first place − building your practice and helping your clients meet their financial goals.
Compensation
A highly competitive payout grid anchors the Waddell & Reed advisor compensation package. It has been constructed with two factors in mind: providing an environment where you don't have to sacrifice top-notch support to earn the compensation you deserve; and offering you the opportunity to build equity in, and realize the value of, your successful practice.
| Production | $150,000 to $299,999 | $300,000 to $499,999 | $500,000 to $749,999 | $750,000 to $999,999 | $1M+ |
|---|---|---|---|---|---|
| Fee based programs | 60% | 65% | 70% | 80% | 85% |
| Mutual funds | 60% | 70% | 75% | 82% | 85% |
| General securities | 50% | 52% | 54% | 56% | 58% |
| Insurance | 50% | 52% | 54% | 56% | 58% |
| Trails | 60% | 70% | 75% | 82% | 85% |
Note: Team members qualify for commissions based on team GDC.
Your compensation doesn't end with the payout grid. We believe that additional financial incentives are critical in a number of areas important to your business, including:
- Equity Compensation
- Fee Support and Reimbursement
- Transition Bonus
- Office Support Program
- E&O Insurance
- Business Transition Program
Equity Compensation
As a Waddell & Reed advisor, you have an opportunity to receive an equity stake in the firm. Equity compensation is rewarded in the form of restricted shares of Waddell & Reed Financial, Inc. Class A common stock (NYSE: WDR). This incentive serves two purposes. First, it represents a significant opportunity for you to build wealth over time. Second, it aligns your success with that of the firm's.
Production GDC* Annual Equity Compensation
| Trailing 12 Months Production | Annual Equity Compensation |
|---|---|
| $200,000 to $399,000 | $5,000 |
| $400,000 to $599,999 | $10,000 |
| $600,000 to $799,999 | $15,000 |
| $800,000+ | $20,000 |
*Production GDC (Gross Dealer Concession) = GDC less 12b-1 revenue
Transition Bonus
Waddell & Reed knows that transitioning your business to a new firm has cost implications. That's why transition bonuses are available for qualified advisors to move their practice to Waddell & Reed.
Errors & Omissions (E&O) Insurance
E&O insurance covers your liability in the performance of professional services. Our group policy enables you to pay a significantly reduced rate versus acquiring an independent policy.
Fee Support and Reimbursement
Waddell & Reed will pay your initial licensing fees and if you meet minimum production requirements you will qualify for the ongoing payment of licensing renewal fees. In addition, based on minimum production requirements, we offer guidance, scholarship support and fee reimbursement for your pursuit of professional designations such as CFP,® CMFC,® ChFC,® CLF® and CLU.®
Office Support Program
You are welcome to establish an office in any of our branch locations at no cost. If you choose to operate from a personal stand-alone location, we offer direct financial support to establish and maintain your office.
| Incoming / Year 1 Gross Dealer Concession (GDC) |
Annual Office Support |
|---|---|
| Up to $349,999 | Up to $7,200 |
| $350,000 to $399,999 | $8,400 |
| $400,000 to $449,999 | $9,600 |
| $450,000 to $499,999 | $10,800 |
| $500,000 to $749,999 | $12,000 |
| $750,000 to $999,999 | $18,000 |
| $1,000,000 + | $24,000 |
| Year 2+ Production GDC* | Annual Office Support |
|---|---|
| Up to $244,999 | Up to $7,200 |
| $245,000 to $279,999 | $8,400 |
| $280,000 to $314,999 | $9,600 |
| $315,999 to $349,999 | $10,800 |
| $350,000 to $524,999 | $12,000 |
| $525,000 to $699,999 | $18,000 |
| $$700,000 + | $24,000 |
*Production GDC (Gross Dealer Concession) = GDC less 12b-1 revenue
Business Transition Program
The purpose of this program is to recognize the continuing value of the client relationships established by qualified advisors who have retired, become disabled, or died, by providing extended compensation. In addition, the program provides for continuance of payments to the spouse or other named beneficiary of an advisor upon his or her death.
