February 13, 2026
Louis Diamond quoted
By Andrew Cohen
Performance-based pay was a more common strategy for firms than linking revenue to staff pay. Only 28% of firms tied revenue from clients to staff compensation. The study also found that bigger RIAs were more likely to offer equity to advisors who had an existing book of business.
More than half (53%) of firms over $5 billion in assets under management offered equity to advisors who joined with an existing book of business, followed by 41% of RIAs over $1 billion doing the same and 34% of firms over $250 million. Advisor industry recruiter Louis Diamond of Diamond Consultants says employee equity is often a difference-maker in RIA performance.
“I always think firms that have a culture of broad equity ownership tend to be more successful. It’s a really smart retention play to keep those folks. You also get more people to think like owners,” Diamond told InvestmentNews.
Notable recent employee equity plays in the RIA space included Ritholtz Wealth Management expanding equity ownership to 29 employees as part of a succession plan from founder Barry Ritzholtz. The RIA manages $7.6 billion with 85 total employees. Diamond explained the various equity structure offerings he often sees RIAs offer to advisors.
