Rewards

Pursue a fulfilling and rewarding career as a financial advisor at Waddell & Reed.

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New financial advisors find fulfillment in building their practices, discovering just how meaningful their careers can be, and connecting with their community and clients. For these they enjoy attractive compensation, benefits and recognition.

“My college debt is weighing on me. I need a career that will pay the bills but that also matters to me.”

-- Recent college graduate and new financial advisor at Waddell & Reed


“Up to now, someone else has determined what I’m worth. I want to make that decision for myself and set and pursue my own income goals.”

-- Career changer and new financial advisor at Waddell & Reed

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Be in control of your income and how you will achieve it as a financial advisor with Waddell & Reed. Let’s talk about what you want from your career.

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Compensation

Competitive Payout

A highly competitive payout grid anchors the Waddell & Reed advisor compensation package.

             Based on TGR1 Financial Planning Advisory Investment Products Insurance  Service Fees/Distribution Fees General Securities
 From    To   MAP SPA
Tier 1  $0   $74,999 45.0% 45.0% 30.0% 45.0% 45.0% 20.0% 45.0%
Tier 2  $75,000  $99,999 54.0% 52.0% 32.5% 52.0% 52.0% 40.0% 46.0%
Tier 3  $100,000  $174,999 58.0% 54.0% 35.0% 54.0% 54.0% 60.0% 47.0%
Tier 4  $175,000  $249,999 62.0% 56.0% 35.0% 56.0% 56.0% 65.0% 48.0%
Tier 5  $250,000  $349,999 66.0% 58.0% 35.0% 58.0% 58.0% 70.0% 49.0%
Tier 6  $350,000  $499,999 70.0% 59.0% 35.0% 59.0% 59.0% 75.0% 50.0%
Tier 7  $500,000  $624,999 72.5% 60.0% 35.0% 60.0% 60.0% 75.0% 51.0%
Tier 8  $625,000  $749,999 75.0% 62.0% 35.0% 62.0% 62.0% 75.0% 52.0%
Tier 9  $750,000  $874,999 80.0% 64.0% 35.0% 64.0% 64.0% 75.0% 53.0%
Tier 10  $875,000  $999,999 80.0% 66.0% 35.0% 66.0% 66.0% 75.0% 53.0%
Tier 11  $1,000,000  $1,249,999 80.0% 68.0% 35.0% 68.0% 68.0% 75.0% 53.0%
Tier 12  $1,250,000  $1,499,999 80.0% 70.0% 35.0% 70.0% 70.0% 75.0% 53.0%
Tier 13  $1,500,000  +  80.0% 72.0% 35.0% 72.0% 72.0% 75.0% 53.0%
Mgr  $100,000  $174,999 58.0% 54.0% 35.0% 54.0% 54.0% 60.0% 47.0%

1 A team will qualify for its tier level based on the advisor with the highest total gross revenue (TGR). Any personal business conducted by a team member will be paid at the tier level based on that advisor’s TGR, which includes personal accounts and his or her portion of the team. If an advisor’s personal tier level is higher than that of the team’s tier level, the advisor will receive the higher payout on their portion of the team.
New advisors are guaranteed at the following rates, but may qualify for higher rates:
First Year Advisors = Tier 7 | Second Year Advisors = Tier 6 | Third Year Advisors = Tier 4

Annual Bonus

Your annual bonus is based on your production gross revenue (PGR) during the year. Your PGR determines your tier, and payout varies by product.

             Based on PGR1 Financial Planning Advisory Investment Products Insurance  Service Fees/Distribution Fees General Securities
 From    To   MAP SPA
Tier 1  $100,000  $174,999 4.0% 4.0% 0.0% 4.0% 4.0% 2.0% 1.0%
Tier 2  $175,000  $249,999 4.5% 4.5% 0.0% 4.5% 4.5% 3.0% 1.5%
Tier 3  $250,000  $324,999 5.0% 5.0% 0.0% 5.0% 5.0% 4.0% 2.0%
Tier 4  $325,000  $449,999 5.5% 5.5% 0.0% 5.5% 5.5% 5.0% 2.5%
Tier 5  $450,000  $599,999 6.0% 6.0% 0.0% 6.0% 6.0% 5.0% 2.5%
Tier 6  $600,000  $749,999 6.5% 6.5% 0.0% 6.5% 6.5% 5.0% 2.5%
Tier 7  $750,000  +  7.0% 7.0% 0.0% 7.0% 7.0% 5.0% 2.5%

1
 PGR is a proprietary term for gross production less 12b-1 service and distribution fees.

Personal Office Reward Program

You may establish an office in any of our branch locations at no cost. If you prefer to operate from a personal stand-alone location, our Personal Office Reward Program helps you establish and maintain your office.

Career Sales Volume1 Annual Support Based on Qualification Level for Annual Sales Convention
  Achievement Honor Crest
$0 - $19,999,999 $0 $2,580 $5,280
$20,000,000 - $39,999,999 $2,520 $5,280 $6,750
$40,000,000 - $59,999,999 $5,160 $6,750 $13,800
$60,000,000 - $79,999,999 $6,600 $13,800 $21,150
$80,000,000 - $99,999,999 $8,100 $16,215 $25,200
$100,000,000 + $9,660 $18,720 $30,000

1 Based on volume of mutual fund and variable annuity sales.

Additional Rewards

Your reward opportunities beyond compensation also may include:

  • Equity compensation
  • E&O insurance
  • Fee support and reimbursement
  • Business transition program
  • Transition bonus for experienced advisors

Earnings and Rewards Put Your Income Goal Within Reach

Commissions and service fees create the foundation of your annual income. This model illustrates the foundation and additional rewards, such as bonuses, that can help you build toward your goals.

First-Year Financial Advisor Compensation Model - Hypothetical Illustration
Total Payout (Cash, bonus & equity) $50,350 $77,532 $103,412 $157,027
Gross Production by Product Type
Mutual Fund Class A and Variable Annuities
$11,250 $17,100 $21,600 $32,400
Advisory Programs (MAP) $41,875 $63,650 $80,400 $120,600
Financial Planning Fees $2,500 $3,800 $4,800 $7,200
Insurance Premiums $5,625 $8,550 $10,800 $16,200
General Securities $625 $950 $1,200 $1,800
Service Fee Revenue $625 $950 $1,200 $1,800
Total Gross Production $62,500 $95,000 $120,000 $180,000
Investment Volume Equivalent1 $1,350,000 $2,050,000 $2,590,000 $3,880,000
Commission Payout (as of % of Gross Production; based on Tier 7)
Mutual Fund Class A & Variable Annuities $6,750 $10,260 $12,960 $19,440
Advisory Programs (MAP)2 $25,125 $38,190 $48,240 $72,360
Financial Planning Fees $1,813 $2,755 $3,480 $5,220
Insurance Premiums $3,375 $5,130 $6,480 $9,720
General Securities $319 $485 $612 $918
Service Fee Revenue $469 $713 $900 $1,350
Total Commissions & Service Fees $37,850 61% $57,532 61% $72,672 61% $109,008 61%
Bonuses
Production Gross Revenue (PGR) Bonus3
$0 $0 $4,740 $8,019
Entrepreneur (E-Bonsus) Program4 $12,500 $20,000 $26,000 $40,000
Equity Compensation $0 $0 $0 $0
President’s Council Bonus $0 $0 $0 $0
Total Bonuses5 $12,500 20% $20,000 21% $30,740 26% $48,019 27%
Total Payout
(Commissions, service fees & bonuses)
$50,350 81% $77,532 82% $103,412 86% $157,027 87%
PLUS:
Licensing Fees6
$250 $250 $250 $250
OS J/Compliance Fees7 $3,125 $4,750 $6,000 $9,000
Health Insurance Subsidy8 $12,942 $12,942 $12,942 $12,942
Convention Meetings/Trips9 $2,750 $3,750 $3,750 $3,750
Marketing/Advertising (Co-op) - W&R Match10 $1,500 $1,500 $1,500 $1,500
Division Office Value11 $12,000 $12,000 $12,000 $12,000
Total expenses covered by W&R $32,567 $35,192 $36,442 $39,442
Total Compensation $82,917 133% $112,724 119% $139,854 117% $196,469 109%
LESS:
Transaction Fees12
$0 $0 $0 $0
E & O Coverage13 $960 $960 $960 $960
Technology Fees14 $1,200 $1,200 $1,200 $1,200
Marketing/Advertising (Co-op) - Advisor Match10 $1,500 $1,500 $1,500 $1,500
Health Insurance8 $9,450 $9,450 $9,450 $9,450
Total expenses not covered by W&R $13,110 $13,110 $13,110 $13,110
Net Compensation $69,807 112% $99,614 105% $126,744 106% $183,359 102%

1 Investment volume is calculated as an estimate based on gross production. It represents the amount the client invests into investment products. 2 MAP sales are eligible for a prepaid commission (three years of annual fees) at point of sale. 3 An annual calendar-year bonus based upon specific requirements. 4 Effective for 12 months and requires manager approval to participate. 5 Other Bonus Opportunities: The top 80 advisors also receive Equity Compensation. The top 6 Classic advisors (based on gross production less 12b-1 fees)* earn President’s Council Bonus. 6 Advisors licensing renewal fees paid for in their resident state (and one non-resident state) based on gross production less 12b-1 fees*. 7 Some firms may charge an OSJ/Compliance fee that generally range from 3 to 10% of gross production. This figure uses an estimated 5% of gross production and represents the approximate value of services that W&R covers on behalf of the advisor. 8 A portion of your health insurance may be subsidized based upon your production less 12b-1 fees*. Amounts shown are for enrollment in the PPO plan for advisor, spouse and children. 9Chairman’s Cabinet Platinum trip (value $9,000), Crest trip (value $9,000), Circle of Champions meeting (value with guest $3,750, value without guest $2,750). 10 Advisor reimbursed up to 50% of covered program expenses. Example shown is $3,000 with $1,500 reimbursed by W&R. 11For advisors in division or district, space expense is $12,000 value and covered by W&R. Advisors in an independent office may qualify for office support up to $30,000 per year. 12 Fee is covered by the home office, unless the transaction is done through NetExchange Pro. 13 E&O Premiums: $80 per month, first year advisors; $125.00 per month, second+ year advisors. 14 $200 per month (beginning six months after activation date). *Referred to as production gross revenue in the Classic Advisor Compensation and Incentive Guide.

Benefits

Benefits are an integral part of your total rewards program. Waddell & Reed offers first-rate and flexible benefit options at an affordable cost.

  • Group health plan
  • Group dental plan
  • Group vision plan
  • Group life insurance and AD&D
  • Employee assistance program
  • Net asset value investment program
  • Simplified employee pension plan

Field leaders1 enjoy additional benefits, including:

  • 401(k) and thrift plan
  • Business travel and accident insurance
  • Cafeteria plan
  • Critical illness insurance
  • Health savings account/flexible spending account
  • Long-term disability
  • Retirement income pension plan
  • Supplemental life insurance

1Available for Regional Vice President, Managing Principal, District Manager and District Branch Manager.

Recognition

Our recognition programs recognize your success and accomplishments at every level of your career.

Superstarter Award
An award and gift presented to our leading new financial advisors for attaining certain sales levels in specific time frames: Bronze — three months; Silver — six months; Gold — nine months.

Pacesetter Awards
The Pacesetter Awards recognize outstanding sales during a financial advisor’s first three years in the business. As a Pacesetter recipient, you will be invited to the Circle of Champions meeting and receive special recognition for your accomplishments.

Circle of Champions
This annual four-day meeting takes place at an exclusive resort and includes top-quality entertainment and local flavor. You’ll learn from and network with executive management, portfolio managers and your successful peers.

Crest
Recognizing superior sales achievement, Crest is a week-long vacation for you and a guest. Past destinations include: Vienna, Beijing, Dublin, Paris, a Mediterranean cruise and Cabo San Lucas.

Chairman's Cabinet
Chairman’s Cabinet is an exclusive three-day getaway at the conclusion of Crest for you and a guest. Chairman’s Cabinet advisors can expect upgraded travel and other amenities. Past Chairman’s Cabinet destinations include: Shanghai, Prague, Lisbon, Brussels and Cannes.

Advisor Medalist Program
The top 250 advisors based on gross production1 receive distinctive benefits including resources to help grow business, professional development and expedited business processes. Most significant is the Top Advisors’ Forum, a four-day visit to corporate headquarters for the top 75 advisors to share ideas with senior management, investment managers, subject matter experts and other successful advisors.

Financial Planning Council
The top eight financial advisors, top two managing principals and top two district managers/district branch managers in annual financial planning fees are appointed to the Financial Planning Council. Members visit the home office to be recognized for their achievement and to meet with senior management to offer thoughts and ideas on our financial planning services and programs.

President's Council
The top 12 advisors — six Choice (based on gross production1), six Classic (based on gross production less 12b-1 fees2) — nationwide form the President’s Council. Each member of the council receives a cash bonus and is invited to special meetings for team building, professional development and networking with executive management.

Seven Cs Recognition Award
This award pays tribute to a financial advisor or managing principal who consistently demonstrates the ideals called for in The Seven Cs, a set of cultural principles that define who we are and underpin our business strategies. Candidates are nominated by their colleagues.

Field Leader Recognition

Leadership Council
The top eight managing principals nationwide form the Leadership Council. Members receive a cash bonus and are invited to special meetings for team building, professional development and networking with executive management.

Field Management Incentive Program
This program encourages managing principals to develop financial advisors and district managers/district branch managers into managing principals and compensates them for the loss in their division. Awards include cash bonus and an invitation for you and a guest to the annual leadership summit.

Managing Principal and District Manager Stock Incentive Plan
This program encourages managing principals and district managers/district branch managers to recruit and develop new financial advisors. Managers are ranked based on numerous criteria including recruiting, development and sales. Members are granted stock awards.

Referred to as total gross revenue in the Advisor Compensation and Incentive Guide
Referred to as production gross revenue in the Advisor Compensation and Incentive Guide.

Be in control of your income and how you will achieve it as a financial advisor with Waddell & Reed. 

Contact us Today

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