Wells Fargo Advisors Cuts Payout for Low-Level Producers
From the Desk of Jim Eccleston at Eccleston Law LLC:
Wells Fargo has announced its 2019 compensation plan for the firm’s 9,400 financial advisors. According to the compensation plan, Wells Fargo will continue to guarantee its financial advisors 50% payouts of all fees and commissions produced after hitting monthly hurdles.
Wells Fargo also will allow the financial advisors who are part of a team to qualify for a 50% payout on all revenue regardless of the hurdle if 75% of their household’s accounts have at least $250,000 in revenue and at least one team member of the group produces $800,000.
However, in 2019, Wells Fargo will penalize low-level producers who do not qualify under the team exemption. Moreover, financial advisors who generate less than $250,000 of annual revenue, and who have seven or more years of industry experience, will have their payouts cut to a mere 19% on pre-hurdle revenue and 47% on post-hurdle revenue.
Wells Fargo management believes that the penalties will effect less than 5% of financial advisors with the firm.
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Related Attorneys: James J. Eccleston
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