July 28, 2021
Louis Diamond Quoted
By Peter Rawlings
Wirehouses are unlikely to reward financial advisors and staff for working through the pandemic in the same way that other financial services firms have and will probably resume implementing compensation changes later this year, according to recruiters.
The absence of adjustments to compensation plans last year — instead of cuts like in some previous years — is likely a roundabout way of wirehouses acknowledging the difficulties caused by the pandemic, says Louis Diamond, president of recruiting firm Diamond Consultants. But there are unlikely to be additional pay rewards, he said.
Ordinarily, the compensation changes wirehouses make to their pay plans tend to incentivize certain behaviors and can make it harder for FAs to attain the same payouts they had the year prior, according to Diamond.