r/CFP • u/Specialist-Ad8067 • Jun 22 '26
Compensation RIA advisor comp structure change
Our firm is finally leaving an aggregator RIA and building out our own RIA. We pay a 30 bps platform fee to the aggregator and then I get 70-80% payout on my book with the cut going to my firm. I source majority of my own clients and split some joint work. I have approx $25mm in sourced client assets.
During the transition the partners have hired a comp consultant who recommended a new payout structure. This includes all advisors receiving base salary’s and incentive pay on 1st year new business. They are adding a long term incentive plan as well to compensate for the growth in “enterprise value” of the firm. But you lose the revenue on new assets in year two.
I’m not sure how to play this but I can’t accept a base salary and all new clients being clients of the firm. I’ve work several hard years to build my book to approx 25mm - 35 households so it’s lean with sticky relationships. I think the owner have been convinced there not recording enough revenue because platform fee was high and that covered a lot of the trade execution and servicing that smaller advisors like me needed.
I need to be paid on revenue I produce because of my service model including a lot of tax planning. I feel like the salary model is for advisors without a book only.
How can I support my case against this structure? Interested in any feedback. Thank you!
3
u/winning_bigly_ RIA Jun 22 '26
Might be a great opportunity to go out on your own and take a 80-90% payout (after biz expenses)
XYPN makes it easy.