Waddell & Reed

Compensation Grid

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

GROSS PRODUCTION1,2 Financial
Planning
Advisory


MAP3,4

SPA3

OTHER3,5
General
Securities
Investment
Products
Insurance Service/
Distribution Fees
$0 to $149,999 50% 60% 35% 50% 45% 50% 50% 50%
$150,000 to $199,999 58% 60% 35% 58% 46% 58% 58% 58%
$200,000 to $249,999 60% 60% 35% 60% 47% 60% 60% 60%
$250,000 to $299,999 62% 60% 35% 62% 48% 62% 62% 62%
$300,000 to $349,999 64% 60% 35% 64% 49% 66% 66% 66%
$350,000 to $399,999 66% 60% 35% 66% 50% 68% 68% 68%
$400,000 to $499,999 68% 60% 35% 68% 51% 70% 70% 70%
$500,000 to $624,999 70% 60% 35% 70% 52% 72% 72% 72%
$625,000 to $749,999 72% 60% 35% 72% 53% 74% 74% 74%
$750,000 to $874,999 76% 60% 35% 76% 54% 76% 76% 76%
$875,000 to $999,999 78% 60% 35% 78% 55% 78% 78% 78%
$1,000,000 to $1,249,999 80% 60% 35% 80% 56% 80% 80% 80%
$1,250,000 to $1,499,999 81% 60% 35% 81% 57% 81% 81% 81%
$1,500,000+ 82% 60% 35% 82% 57% 82% 82% 82%
1Referred to as Total Gross Revenue in the 2014 Choice Advisor Compensation and Incentive Guide.
2Teams will qualify for their tier level based on the advisor with the highest gross production. Any personal business conducted by a team member will apply separately to the appropriate gross production range.
312b-1 fees are passed through to the advisor.
4MAP products include MAP, MAPPlus, MAPChoice, MAPIncome.
5Other products include MAPFlex, MAPLatitude, MAPSelect, Lockwood Investment Strategies and Lockwood Sponsored Portfolios.

Equity Compensation

You have an opportunity to receive an equity stake in the firm based on your production. Equity compensation is rewarded in the form of restricted shares of Waddell & Reed Financial, Inc. Class A common stock (NYSE: WDR).

Gross Production1,2
Annual Equity Compensation
$300,000+
2.5%
1Referred to as Total Gross Revenue in the 2015 Choice Advisor Compensation and Incentive Guide.
2Equity Compensation will be paid out on an annual basis based on calendar year gross production. If an advisor’s gross production is greater or equal to $300,000, equity compensation will be paid out in the amount of 2.5% of gross production. Subject to vesting schedule. Team members must qualify based on individual gross production.

Transition Bonus

Transition bonuses are available for qualified advisors to move their practice to Waddell & Reed.

Errors & Omissions (E&O) Insurance

E&O insurance covers your liability in the performance of professional services. Our group policy enables you to pay a significantly reduced rate versus acquiring an independent policy.

Fee Support and Reimbursement

Waddell & Reed will pay your initial licensing fees. In addition, based on minimum production requirements, we offer guidance, scholarship support and fee reimbursement for your pursuit of professional designations such as CERTIFIED FINANCIAL PLANNERTM, CMFC®, ChFC®, CLF® and CLU®.

Personal Office Support Program

You may establish an office in any of our branch locations at no cost. If you choose to operate from a personal stand-alone location, we offer direct financial support to establish and maintain your office.

Trailing 12-Month Gross Production1,2
From To Annual Office Support
$0 $149,999 $3,0003
$150,000 $199,999 $3,600
$200,000 $249,999 $4,800
$250,000 $299,999 $6,000
$300,000 $349,999 $7,200
$350,000 $399,999 $8,400
$400,000 $499,999 $9,600
$500,000 $624,999 $10,800
$625,000 $749,999 $12,000
$750,000 $874,999 $16,800
$875,000 $999,999 $18,000
$1,000,000 $1,499,999 $22,800
$1,500,000+   $24,000
1Referred to as Total Gross Revenue in the 2015 Choice Advisor Compensation and Incentive Guide.
2In a team situation, the support level is paid based on the advisor with the highest gross production qualification.
3Second year and beyond Choice advisors receive $0 in the $0 - $149,999 range.

Business Transition Program

When you’re ready to retire, this program provides a seamless transition for your clients and financial support for you. As you transition your clients to another Waddell & Reed advisor, you receive an income, the successor advisor builds his or her practice, and your clients receive uninterrupted service and support.