Waddell & Reed
Many firms promote 90% payouts to recruit experienced advisors. What may be less clear is that these firms offer very little support for that level of compensation, and that, on a net basis, compensation is thus much lower. Waddell & Reed has struck a unique balance, offering very competitive compensation with a level of support that allows you to focus on why you got in the business in the first place − building your practice and helping your clients meet their financial goals.

Compensation

A highly competitive payout grid anchors the Waddell & Reed advisor compensation package. It has been constructed with two factors in mind: providing an environment where you don't have to sacrifice top-notch support to earn the compensation you deserve; and offering you the opportunity to build equity in, and realize the value of, your successful practice.

Gross
Dealer
Concession
(GDC)1,2
Fee Based
MAPFlex
MAPSelect
MAPLatitude
MAPChoice3
SPA3
 General
Securities 		Mutual
Funds 		Insurance Trails
$0 to $149,999 50% 60% 35% 45% 50% 50% 50%
$150,000 to $199,999 58% 60% 35% 46% 58% 58% 58%
$200,000 to $249,999 60% 60% 35% 47% 60% 60% 60%
$250,000 to $299,999 62% 60% 35% 48% 62% 62% 62%
$300,000 to $349,999 64% 60% 35% 49% 66% 66% 66%
$350,000 to $399,999 66% 60% 35% 50% 68% 68% 68%
$400,000 to $499,999 68% 60% 35% 51% 70% 70% 70%
$500,000 to $624,999 70% 60% 35% 52% 72% 72% 72%
$625,000 to $749,999 72% 60% 35% 53% 74% 74% 74%
$750,000 to $874,999 76% 60% 35% 54% 76% 76% 76%
$875,000 to $999,999 78% 60% 35% 55% 78% 78% 78%
$1,000,000 to $1,499,999 80% 60% 35% 56% 80% 80% 80%
$1,500,000+ 82% 60% 35% 57% 82% 82% 82%

1Also referred to as gross revenue.
2Team members qualify for commissions based on team production. Any personal business conducted by a team member will apply separately to the appropriate GDC range.
312b-1 fees are passed through to the advisor.

Your compensation doesn't end with the payout grid. We believe that additional financial incentives are critical in a number of areas important to your business, including:

  • Equity Compensation
  • Fee Support and Reimbursement
  • Transition Bonus
  • Office Support Program
  • E&O Insurance
  • Business Transition Program

Equity Compensation

As a Waddell & Reed advisor, you have an opportunity to receive an equity stake in the firm. Equity compensation is rewarded in the form of restricted shares of Waddell & Reed Financial, Inc. Class A common stock (NYSE: WDR). This incentive serves two purposes. First, it represents a significant opportunity for you to build wealth over time. Second, it aligns your success with that of the firm's.

Production GDC1,2,3
Annual Equity Compensation
$300,000+
2.5%

1Production GDC = GDC less 12b-1 revenue.
2Also referred to as production gross revenue.
3 Equity Compensation will be paid out on an annual basis based on calendar year production GDC. If an advisor’s production GDC is greater or equal to $300,000, equity compensation will be paid out in the amount of 2.5% of production GDC. Subject to vesting schedule. Team members must qualify based on indivdual production GDC.

Transition Bonus

Waddell & Reed knows that transitioning your business to a new firm has cost implications. That's why 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 and if you meet minimum production requirements you will qualify for the ongoing payment of licensing renewal fees. In addition, based on minimum production requirements, we offer guidance, scholarship support and fee reimbursement for your pursuit of professional designations such as CFP,® CMFC,® ChFC,® CLF® and CLU.®

Personal Office Support Program

You are welcome to 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.

Year 1
Trailing 12-Month GDC1

Year 2+ Production GDC1,2

From

To
Annual Office
Support

From

To
Annual Office
Support
$0
$149,999
$3,000
$0
$104,999
$0
$150,000
$199,999
$3,600
$105,000
$139,999
$3,600
$200,000
$249,999
$4,800
$140,000
$174,999
$4,800
$250,000
$299,999
$6,000
$175,000
$209,999
$6,000
$300,000
$349,999
$7,200
$210,000
$244,999
$7,200
$350,000
$399,999
$8,400
$245,000
$279,999
$8,400
$400,000
$499,999
$9,600
$280,000
$349,999
$9,600
$500,000
$624,999
$10,800
$350,000
$437,499
$10,800
$625,000
$749,999
$12,000
$437,500
$524,999
$12,000
$750,000
$874,999
$16,800
$525,000
$612,499
$16,800
$875,000
$999,999
$18,000
$612,500
$699,999
$18,800
$1,000,000+
$1,499,999
$22,800
$700,000
$1,049,999
$22,800
$1,500,000+
 
$24,000
$1,500,000+
 
$24,000
1 In a team situation, the support level is paid based on the advisor with the highest production GDC qualification.
2 Production GDC (Gross Dealer Concession) = GDC less 12b-1 revenue.


Business Transition Program

The purpose of this program is to recognize the continuing value of the client relationships established by qualified advisors who have retired, become disabled, or died, by providing extended compensation. In addition, the program provides for continuance of payments to the spouse or other named beneficiary of an advisor upon his or her death.