Wells Fargo

Recruit Deal

260% to 300%

Upfront payment: 125% to 150%

Comp/Payout

2016 Private Client Group FA Compensation

Hurdles (Wells Fargo’s version of the grid):

Monthly production:

$11,500; $12,500; $13,250

Payout: 22% below the hurdle; 50% above

Levels to Determine the Hurdle (based on 2014 or 2015 activity)
  • High Performance
    1. Premier Advisor Status
  • Client Experience
    1. Full best practices adoption
      1. Envision 80% average
      2. Advisory – 60% Advisory AUM or 80% Advisory Revenue
      3. Lending – $6,000 lending credits (or $8,000 lending credits for 2016 retro award)
    2. Delta Graduate
  • Growth
    1. 15% revenue growth or $150,000 revenue growth
Small Household Policy (New in 2016)
  • Beginning in 2016 FAs can elect to receive compensation for shifting their smaller households (less than $65k in household assets) to a local financial relationship advisor or FRA.
  • Pays FAs that give away HHs the greater of 2015 T12 gross or 40 bps
  • Pays FAs for getting to 75% of HHs over $250k
  • Year 1 for smaller HHs – no change in comp
  • Full payout on Mutual Fund trails – regardless of HH size
  • After HH is on the books for more than 12 months – pays 22% until greater than $65k
  • The payment for transitioning smaller households and the bonus for higher asset clients will be paid in the form of deferred comp.
Deferred Comp – Best Practices
  • Additional opportunities to earn deferred compensation for various best practices:
  • Advisory – growing net flows and/or Advisory AUM for clients for whom it is appropriate
  • Addressing their clients borrowing needs (credits and/or Lending credit growth YOY)
  • Premium Award (kicker) for doing all three Best Practices
  • $10M in Advisory Flows
  • $8k in Lending Credits
  • 75% of HHs over $250k