Advisors’ pay: low early, rises with tenure

A survey of 352 financial advisors conducted in March and April collected pay and background information from advisors working across the United States. Three hundred sixteen respondents provided full compensation data used in the analysis.

Average figures in the sample included more than $168,000 in base pay, about $224,000 in advisory fees or commissions, roughly $47,000 in bonuses and $45,000 in other pay. The median total compensation in the sample was closer to the Bureau of Labor Statistics’ May 2024 median of $102,140 for personal financial advisors.

Multiple respondents described the first three years as the most challenging for pay and client development. One wirehouse advisor managing between $500 million and $1 billion in client assets advised partnering with a senior professional and sharing revenue while servicing an existing book. A broker-dealer advisor with a similar book recommended having ample cash reserves or a partner with income, adding, “It will be brutal for the first three years, then better, then great.”

Survey participants worked at a mix of firms: 15% at a bank or wirehouse, 46% with other broker-dealers, 11% at hybrid RIAs and 24% at RIA-only firms. At least 40% of participants had 20 or more years in the field, about one-third had between 11 and 20 years, and 26% had ten years or less. Respondents with longer tenure and larger assets under management pushed average pay figures higher.

Tenure, seniority and AUM showed the strongest links to total compensation. Seventy percent of advisors managing at least $250 million reported total pay above $300,000 per year. Sixty-five percent of advisors with 20-plus years of experience and 67% of senior executives reported annual pay above $300,000. Region and firm type had weaker relationships with pay.

Respondents urged early-career advisors to seek roles that provide a base salary for several years, join teams led by experienced advisors, and earn credentials. One RIA-only advisor recommended investing in training and choosing a firm that will provide a clear career path and mentorship.

The survey also identified structural challenges. Respondents noted that nearly three out of four rookie advisors do not establish lasting careers. Several said training often focuses on compliance and account processes rather than on acquiring new clients. Jeffrey Czajka, founder of Advisor Growth Solutions, warned that long-term income figures are sometimes presented to recruits without explaining the decades of work required.

Participants pointed to a shift in pay mix from commission-based sales toward fee-based planning, which changes how new advisors are paid and how firms justify hiring and training. Some respondents said retirements among older planners may increase job openings for new advisors, while underscoring the difficulty of building a stable advisory practice.