Here's How RIAs and Their Staff Are Paid: Schwab Study

Seventy-six percent of client service associates, those who provide non-advice-related support to clients, received performance-based incentive pay, more than those in other positions.

Twenty-seven percent of senior client account mangers/relationship managers had compensation tied to revenue, and 46% of these employees had some degree of firm ownership — again, more than those in any other role.

Staff in investment positions received base salaries in the $59,000-to-$130,000 range at the median.

Investment professionals' total cash compensation ranged from $65,000 to $161,000, and their total cash compensation, including owner profit distributions, ranged from $65,000 to $173,000.

More than 60% of all investment positions received performance-based pay, according to the data:

• 85% of portfolio administrators
• 83% of paraplanners (who provide tech support to client account/relationship managers)
• 81% of traders
• 77% of research analysts
• 68% of financial planners
• 61% of investment/portfolio managers

Thirty-three percent of investment/portfolio managers and 14% of financial planners had some degree of firm ownership: 24% of the latter and 17% of the former had 50% or more ownership.

For staff in operations and administrative positions, base salaries ranged from $43,000 to $98,000 at the median, while total cash compensation — both with and without owner profit distributions — ranged from $46,000 to $110,000.

Eighty-two percent of technology professionals received performance-based incentive pay, as did 80% of human resource staff and 73% of operations directors/managers, operations associates and receptionists.

Operations and administration staff were less likely than other workers to receive firm equity, but 13% of operations directors/managers did hold some firm ownership, according to the data.