Your work is meaningful and deserving of rewards.
Independent advisors at Waddell & Reed share some common goals: grow their practices, make their work meaningful, help clients be successful. For these they work relentlessly and enjoy competitive payouts, benefits and recognition.
“At my previous firm I enjoyed a high payout, but the rising expense of running my business and the ever-increasing charges funneled back to me cut into my bottom line.”
-- Independent financial advisor now affiliated with Waddell & Reed
“Fee compression, annual grid changes, shifts in work/life balance, increased minimums and decreased incentives. There was so much I disliked about my old firm.”
-- Former wirehouse financial advisor now affiliated with Waddell & Reed
Waddell & Reed prefers a different approach.
Complete our questionnaire and a member of our team will contact you to start the conversation.Get Started
A highly competitive payout grid anchors the Waddell & Reed advisor compensation package.
|$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 Referred to as total gross revenue in the Advisor Compensation and Incentive Guide.
2 A team will qualify for its tier level based on the advisor with the highest gross production. Any personal business conducted by a team member will be paid at the tier level based on that advisor’s total gross production, 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.
3 12b-1 fees are passed through to the advisor.
4 MAP products include MAP, MAPPlus, MAPChoice, MAPIncome.
5 OTHER products include MAPFlex, MAPLatitude, MAPSelect, Lockwood Investment Strategies and Lockwood Sponsored Portfolios.
You’ll have opportunity to receive an equity stake in the firm, rewarded in the form of Waddell & Reed Financial, Inc. Class A common stock (NYSE:WDR).
|Gross Production1,2||Annual Equity Compensation|
1 Referred to as Total Gross Revenue in the 2016 Choice Advisor Compensation and Incentive Guide.
2 Equity 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.
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.
|Trailing 12-Month Gross Production1|
1 Referred to as total gross revenue in the Advisor Compensation and Incentive Guide.
2 Second year and beyond Choice advisors receive $0 in the $0 - $149,999 range.
Your reward opportunities beyond compensation also may include:
- E&O insurance
- Fee support and reimbursement
- Business transition program
- Transition bonus for experienced advisors
Reach Your Compensation Goals
Your net compensation is an amalgamation of dozens of factors beyond commission and 12b-1 fees. This analysis of Waddell & Reed’s compensation package will help take the guesswork out of your bottom line.
|Trailing 12-Month Gross Production||$250,000||500,000||750,000||1,000,000|
|Commissions and Service Fees1||$151,000||60.4%||341,100||68.2%||546,750||72.9%||766,000||76.6%|
|President’s Council Bonus2||10,000|
|Total Cash/Equity Compensation||151,000||60.4%||353,600||70.7%||565,500||75.4%||801,000||80.1%|
|OS J/Compliance Fees4||12,500||20,000||30,000||30,000|
|Health Insurance Subsidy5||12,942||12,942||12,942||12,942|
|Convention Meetings / Trips6||-||2,750||12,750||12,750|
|Advertising (Co Op) - W&R Match7||2,000||3,000||4,000||5,000|
|Division Office Value8||12,000||12,000||12,000||12,000|
|Total expenses covered by W&R||40,442||51,692||72,692||73,692|
|E & O coverage10||1,500||1,500||1,500||1,500|
|Advertising (Co Op) - Advisor Match7||2,000||3,000||4,000||5,000|
|Total expenses not covered by W&R||19,520||24,270||29,020||33,770|
|Net Compensation to Advisor||171,922||68.8%||381,022||76.2%||609,172||81.2%||840,922||84.1%|
1Assumes the following product mix: Advisor - 48% (Lockwood Advisory fee - 38%, MAP - 10%), Investment Products - 28% (Mutual Funds - 15%, Variable Annuities - 13%), General Securities - 10%, Service/Distribution Fees - 9%, Insurance - 4%, Financial Planning (other than Advisory) - 1%.
2The top six Choice advisors (based on gross production*) earn President’s Council Bonus. There is no guarantee that $1,000,000 of gross production will qualify.
3Advisors initial licensing fees paid for in their resident state (and any non-resident states) up to $1,000.
4Independent firms may charge an OSJ/Compliance Fee that generally ranges from 3% to 10% of gross production*. This analysis uses an estimated 5% at $250,000, 4% at $500,000 and $750,000, and 3% at $1,000,000. This represents the approximate value of services that Waddell & Reed covers on behalf of the advisor.
5A portion of your health insurance is subsidized based upon gross production*. Amounts shown include advisor, spouse and children.
6Chairman’s Cabinet Platinum trip (value $9,000), Crest trip (value $9,000), Circle of Champions meeting (value with guest $3,750, calue without guest $2,750).
7Advisor reimbursed for advertising up to 50% of covered program expenses.
8For those advisors working in a division or district office, office space expense is valued at $12,000/year and is covered by Waddell & Reed. If an advisor works in an independent office, he or she may qualify for office support up to $30,000/year.
9Transactions Fees: mutual funds, $7/trade; equities, $17/trade; fixed income, $25/trade; UITs, $20/trade, options, $17/trade plus $1 per contract; options exercised $30/position; systematic, $2/trade. Analysis estimated fees based on 1.5% of gross production*.
10E&O Insurance: $125/month;Technology Fee: $235/month.
*Referred to as total gross revenue in the Advisor Compensation and Incentive Guide.
You work hard.
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Our recognition programs recognize your success and accomplishments at every level of your career.
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.
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 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.
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
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.
1 Referred to as total gross revenue in the Advisor Compensation and Incentive Guide
2 Referred to as production gross revenue in the Advisor Compensation and Incentive Guide.
Let us tell you about how Waddell & Reed’s recognition programs celebrate your big moments and well-earned success.Contact Us Today