Transcription
financial advisorcompensation plan
Our Compensation Plan1 recognizes that largergross production is generally more profitableto the firm; therefore, as a Financial Advisor, youreceive a greater share of the revenue as yourlevel of production increases – providing youwith unlimited earning potential. In addition, ourcommission grid differs from that of other firms, asit does not differentiate between products.Stifel’s commission grid illustrates the firm’sphilosophy of operating like a partnership.Using 25% for the first 12,000 of monthly grosscontributes towards fixed costs, such as backoffice processing, market data expenses, technology,rent, utilities, insurance, and more. Thereafter,commissions for production over 12,000 are set at50% – in true partnership fashion. No tricks. Nogimmicks. Our advisors determine what productsand services best meet their client’s needs, and arecompensated appropriately – it’s just that simple.Because Stifel believes that our Financial Advisorsare the driving force behind our firm’s success,we offer a competitive and attractive compensationpackage. Stifel offers a compensation payoutstructure that exceeds that of many other firms.“Stifel does truly believe in beingclient focused. Our clients arenot surprised by nuisance feesat every turn. Our compensationis fair and not tied to theobjectives of the firm, but theobjectives of the clients.”Holly M. Baroway, CFP , MBASenior Vice President/InvestmentsDenver, Colorado1Minimum productionrequirement of 225,000 annually forgrid compensation.Production belowminimum qualifies fora flat 25% payout.
top-tier compensationstifel wealth accumulation planOne Simple GridThe Stifel Wealth Accumulation Plan (SWAP)Stifel’s compensation program is one that is easy to understand, with two main components: Cash Compensation and TaxAdvantaged Deferred Compensation.In addition to your monthly commissions, youʼll have the opportunity to participate in a unique deferred compensation plan thatallows you to build wealth, tax-deferred.Monthly CommissionsThis plan is referred to as the Stifel Wealth Accumulation Plan or SWAP. There are two parts to this program: Non-elective,production-based deferrals and elective deferrals.At Stifel, we believe in always putting the interest of our clients first. Therefore, we have opted to use just one grid system, withno product differentiation. This alleviates the pressure some Financial Advisors may feel to sell certain products and ensures thatyou are able to provide your clients with only the products and services you honestly feel will work to their benefit.monthly gross productioncommission gridFirst 12,000 of Monthly Gross25%All Gross Above 12,00050%Non-Elective, Production-Based Deferred Compensation – With SWAP, once your gross production reaches the 300,000threshold, you will automatically begin receiving 5% towards your non-elective, production-based deferred compensation award,based on all annual gross.Non-elective, production-based deferred compensation and the company match are subject to a seven-year vesting period.monthly deferredpayout and cap 300,000Begin Earning Monthly Deferred When YTD Reaches 600,0005%Percentage Payout Into Deferred Accountproducer payoutNon-Elective, Production-Based Deferred Compensation ExampleStifel49.0%RBC47.0%Janney44.0%Raymond James43.5%Merrill Lynch43.0%30%35%40%45%50%Source: Financial Planning, “Best Advisor Pay for the 600K Producer,” April 9, 2021.The above represents firms with a minimum of 1,000 financial advisors and with investment banking services. 1,000,000producer payoutStifel51.4%Janney51.0%RBC50.2%Raymond James49.3%Merrill JuneJulyMonthly Gross 75,000 50,000 50,000 75,000 50,000 50,000 85,000YTD Gross 75,000 125,000 175,000 250,000 300,000 350,000 435,0005% Deferred–––– 15,000 2,500 4,250YTD Deferred–––– 15,000 17,500 21,750Non-Elective, Production-Based Deferred Investment Options50%Source: Financial Planning, “Best Advisor Pay for the 1M Producer,” April 16, 2021.The above represents firms with a minimum of 1,000 financial advisors and with investment banking services.5
deferred compensationInvesting Your Production-Based Deferred CompensationWith your deferred compensation, 50% of the award will be in Stifel stock, and the other 50% will be in a cash alternative fixedrate investment. Below is an example with 20,000 in deferred compensation.deferred compensation 20,000stifel stockfixed income fund % % 10,00050% 10,00050%Compensation SummaryOn Stifelʼs grid system, your monthly gross production determines your respective monthly compensation. The higher the grossrevenue, the higher your potential payout – as you can see in the chart below.annualgrosscommissiondeferredtotal % % % 2,000,000 964,00048.20% 100,0005.00% 1,064,00053.20% 1,500,000 714,00047.60% 75,0005.00% 789,00052.60% 1,250,000 589,00047.12% 62,0005.00% 651,50052.12% 1,000,000 464,00046.40% 50,0005.00% 514,00051.40% 750,000 339,00045.20% 37,0005.00% 376,50050.20% 600,000 264,00044.00% 30,0005.00% 294,00049.00% 500,000 214,00042.80% 25,0005.00% 239,00047.80% 400,000 164,00041.00% 20,0005.00% 184,00046.00% 300,000 114,00038.00% 15,0005.00% 129,00043.00%Notes:(1) Commission is based on Standard 25/50% formula, whereby the first 12,000 of the month is set at 25% and the balance is set at 50%.(2) Deferred Compensation is 5.0% of annual gross provided that gross is 300,000 or more.6www.choosestifel.com
One Financial Plaza 501 North Broadway St. Louis, Missouri 63102Stifel, Nicolaus & Company, Incorporated Member SIPC & NYSE www.stifel.com1121.3938685.1
Source: Financial Planning, "Best Advisor Pay for the 1M Producer," April 16, 2021. The above represents firms with a minimum of 1,000 financial advisors and with investment banking services. Non-Elective, Production-Based Deferred Compensation Example 5 1,000,000 producer payout 30% 35% 40% 45% 50% Stifel Janney RBC Raymond James Merrill .
