Advisor Salary Positions
As the industry continues to evolve, more Firms are starting to offer positions to Advisors who are compensated in a more traditional salary plus bonus structure as opposed to historical commission-based compensation.
With dozens of different job titles used, we are listing these more generically to highlight expectations depending on role and experience. They are from our own personal experiences and relationships and not necessarily intended to be national averages. They are pretty reliable benchmarks to help you better understand your worth, and your options, as an Advisor.
New Financial Advisors
Little to no experience
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New Advisors will typically earn between $60,000 and $80,000 as a base salary. This amount will vary based on prior experience and the Firm, as well as local cost of living.
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New Advisors will typically have the opportunity to earn some type of bonus compensation. The metrics to determine this will vary mostly with the responsibilities of the job and Firm culture.
Some bonuses may be determined by new relationships brought to the Firm, retention or satisfaction from existing clients the Advisor services, or profitability of the Firm itself.
In most cases, Advisors bonuses will range from 0 to $20,000 per year for Advisors with limited experience.
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In most cases, Advisors will not be able to earn equity in the Firm in the first 1-2 years, but this varies greatly among Firms, with some offering equity after 1 year and others never offering equity to employee Advisors.
New Advisors are in high demand due to an aging industry and Firms who are starting to plan for their own futures. Many Firms are seeking young talent that they can develop to eventually play leading roles or to take over their practices over the coming decades.
As in any industry, new employees should expect to prove themselves over time and earn their way to higher salaries. Where traditional commission-based environments may yield six figure incomes right away for top talent, it may take 3-5 years before salaried Advisors see a significant increase in their compensation. But the wait will be worth it for the ones who stick it out and graduate up the ladder.
Lead Financial Advisors
3 to 10 years of experience
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Lead Advisors will typically earn between $80,000 and $120,000 as a base salary. This amount will vary based on the Advisors role at the Firm, as well as local cost of living.
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Lead Advisors will typically earn bonus compensation based on their responsibilities and Firm culture.
As with new Advisors, these bonuses may be determined by new relationships brought to the Firm, retention or satisfaction from existing clients the Advisor services, or profitability of the Firm itself.
Lead Advisors typically earn between $10,000 and $60,000 per year, although the high end may be much higher at some Firms relative to others.
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Equity compensation will continue to vary for all career levels depending on the Firm. However, it is common for experienced Advisors to start earning equity in the Firm after 3-5 years of service.
The amount and structure of this equity will vary based on the size and culture of the Firm.
Senior Level Financial Advisors
10 or more years of experience
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Senior level Advisors will typically earn between $120,000 and $180,000 as a base salary, varying with the Firm, and local cost of living.
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The most experienced Advisors have the opportunity to earn bonuses determined by a wide array of factors, including team performance, individual metrics, and Firm profitability.
Senior Advisors may earn bonuses from $60,000 per year, with many earning bonuses well into six figures for many Firms.
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Most Firms will offer equity to its top Advisors in key positions. This equity will vary with the Firm, but many high-level Advisors earn enough equity that it makes up nearly half of their overall compensation, doubling their salary and bonus total.