Wirehouse Wells Fargo unveiled to many of its 13,723 financial advisors this morning their 2020 compensation schedules and already some FAs have begun grumbling.
The company has scheduled to release the grid to the press this afternoon, but some advisors who viewed the schedule this morning cite one key change in particular as a cause for concern, according to one outside recruiter familiar with the mood at Wells Fargo offices.
The change: Advisor payout rates for accounts with assets of $250,000 or less will be reduced to 20%. Management will adhere to that low payout rate for smaller accounts, regardless of other factors — such as revenues generated by advisors or the growth in their assets under management — according to some FAs’ initial understanding of the 2020 plans, the same person says.
The change may hit hardest FAs who are known as Community Bank Advisors, and who were formerly part of a legacy Wealth Brokerage Services unit.
When compared to their counterparts in the WFA Advisor-led units, those advisors generally have a larger share of the smaller clients in terms of account balances.
This story is developing. Stay tuned for more reporting from FA-IQ when Wells Fargo releases its 2020 comp schedule later this afternoon.