Advisor Compensation Surging
SuperUser Account posted on August 25, 2011
Advisors in general are back in the pink, making more money, gathering more assets under management and generally feeling upbeat about their prospects.
According to a survey conducted by Bank Investment Consultant advisors last year sold a whole lot more mutual funds, ETFs and other equity-linked products, while continuing to increase annuity sales. A trend toward more fee-based income and away from commissions continued; and many more advisors were making the high end of their grid. Recruiter calls were way up as more of them offered signing bonuses.
In 2009, by contrast BIC's annual compensation survey of financial advisors in banks and credit unions indicated clear signs of distress. Only 18% of respondents said they were selling more ETFs, equities and mutual funds, for example—an indication that customers were still afraid of stocks. And nearly half reported that they had earned less than in 2008.
A year later, nearly half of BIC's survey respondents (48%) say they are selling more mutual funds, ETFs and equities, and only 19% say they earned less in 2010 than in 2009. "Payouts and the total income of advisors have been rising, and that's 100% because of the improvement in the market," says Rick Rummage, founder and CEO of The Rummage Group, a recruiting firm. "Clients are feeling better, reps are feeling and acting more optimistic."