Merrill Tweaks Advisor Bonuses, Keeps 2027 Pay Grid

Merrill will keep its basic advisor pay grid unchanged in 2027 while revising bonuses for asset gathering, new households and client lending. The Bank of America subsidiary announced the changes Thursday.

Advisors will continue to receive the same standard payout when they generate specified levels of annual revenue. The changes apply to additional awards designed to encourage growth in selected business areas.

Under the revised Merrill Growth Award, advisors will need at least $7.5 million in strategic flows, up from $5 million, or four new household credits, up from three. Strategic flows include assets in managed accounts, banking deposits and lending arrangements. Merrill generally provides one credit for each new household, although larger households may receive more.

The award pays 12 basis points, or 0.12%, on up to $50 million in qualifying flows. A lower rate applies to amounts above $50 million. Merrill will replace its existing elite award for advisors who bring in more than $150 million in strategic flows with three separate awards.

The new elite awards will recognize advisors who bring in at least $50 million in net managed-account inflows, at least $10 million in checking or savings deposits, or at least $10 million in total client loans. Qualifying advisors will receive an addition equal to 50% of their standard Merrill Growth Award payout.

Merrill is also introducing a New Lending Growth Award. It will pay 10 basis points on at least $10 million in loans arranged for clients and 20 basis points on at least $25 million in loans.

In a statement, Merrill Chief Operating Officer Patricio Diaz described the changes as targeted updates based on client needs and the range of products advisors offer. “We look at compensation every year to make sure it supports our long-term strategy and rewards advisors for strong performance,” he said.

Andrew Tasnady, founder of compensation consulting firm Tasnady & Associates, expects the changes to have a limited effect on most advisors because the basic grid is unchanged. “You know, if you’re flat, nothing’s really changing,” he said. “It’s just people on the margin, maybe, that potentially could lose out. But it’s probably not that many people.”

Merrill is the third major wirehouse to disclose its 2027 advisor compensation plans. UBS will leave its basic pay grid unchanged, while Morgan Stanley is raising the revenue levels advisors must reach to receive the same take-home pay. Wells Fargo typically announces its compensation policies in October.

Merrill advisors who generate $1 million in annual revenue credits currently retain $465,000. At $2 million in revenue credits, they keep slightly more than $1 million. Merrill began paying growth awards in 2024, after ending a growth grid with additional rewards and penalties tied to business targets.

Earlier in 2026, Merrill reduced the payout on revenue generated by small households with between $250,000 and $500,000 in assets and loans to 20% of the related revenue credits.

Merrill Wealth Management reported a 9% year-over-year increase in total client balances, including investments, deposits and loans, to $4.2 trillion in the third quarter. It added 4,200 households with at least $500,000 in investable assets, a 17% increase from a year earlier.