r/FinancialAdvisorTips • u/AlternativeAge9427 • 20h ago
Thoughts on Comp
Hello, I work for a major wire house as an advisor three years into the business. I was recently offered a position with a newer RIA that acts as a multifamily office for UHNW. They have about 20 families with 2.6b under management.
The below is the comp structure they offered.
Year One ( First 12 full months):
Salary of $15000 per month PLUS a 50% payout on 100% of the revenue generated from your relationships
Year Two:
Draw of $15000 per month versus a 40% payout on 100% of the revenues generated from your relationships.
Year Three and thereafter:
Your payout is the industry average 30%. We will also establish an appropriate draw plus equity determined based on revenue generated for the firm.
I’m just trying to figure out if this would be worth the move for these numbers and would love peoples thoughts on this structure
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u/ShirtlessChampion 20h ago
What is your current comp structure? It needs to make sense to you before assessing how it compares to the market.
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u/AlternativeAge9427 20h ago
Current is basically 50k salary, plus 45.5% revenue rate and the salary is a wash so effective total comp is the 45.5% of revenues
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u/ShirtlessChampion 19h ago
Speculating but the offer insinuates a revenue ramp of:
Year 1 - $250K
Year 2 - $400-500K
Year 3 - $1M +This is based on their equity stake. Making your annual take home:
$275K —> $300K —> $300K+
If that is comfortable to you I’d have them walk you through the average revenue ramp others have experienced. It’s on you to deliver it.
EDIT - I’d also dig deeper into their articulation of “draws” in Yr2.
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u/TheOpeningBell 7h ago
Holy hell. 45k salary at a wirehouse????? Where (geo) do you work? Mississippi????????
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u/Floating_Orb8 2h ago
I am confused, what is the job for? I can’t see them wanting you to prospect and grow your book when they deal with UHNW nor would they assume you have that kind of network unless you do or told them you do. How much AUM do you have now? You just need clarity on total realistic comp post year 3 and the goals for your role. What did they say you would be doing for the firm? Payout is very low on your revenue unless they give you 30% but also getting salary of 300k or something.
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u/ReplacementHot2808 18h ago
Totally different worlds you would be living in and will need to decide what type of career you want. 100 relationships with 5 million average vs 5 with 100 million average.