One of the main problems facing financial advisors is how to structure compensation and equity arrangements. More financial advisors are moving towards team practices and incorporating new ways to compensate partners and employees becomes a direct problem facing financial advisory teams.
When developing a compensation plan it should do more than simply allocate revenue. A plan should be designed to show fairness and reinforce behaviors and efforts that the team seeks from all members.
SMART Concepts Group will assist you in designing appropriate compensation plans, incentive plans and bonus structures to reinforce productive team behavior.
compensation planning & strategy services:
Through our consultative process we will work with you and your team to build compensation plans to address:
- Revenue & profit distribution
- Equity ownership
- Distribution of expenses
- Bonus and incentive plans
- Deferred compensation
- Partner and team compensation
- Employee Compensation Plans
SMART enough?
- Are you utilizing a consistent compensation methodology that provides clarity and promotes fairness to every team member?
- Is there an individualized written compensation agreement that describes compensation arrangements for all registered and non-registered employees of the practice?
- Is there separation of roles and responsibilities in an employment agreement contract that identifies employment classification and compensation design for each respective role within your practice?
- Have defined and articulated how one advances within the organization?
- Is there a standard for how payouts are determined? Flat dollar amount? Percent of profits above a certain threshold?
- Who or how will you make the decisions on allocation of income? Will the allocation be based on percentages or units of participation by owners?
- Do you understand the advantages and disadvantages of an independent model vs integrated model vs a segmented model?
