Am I Underpaid?

This is one of the most common questions I hear from advisors at firms like Edward Jones, Merrill, UBS, and large RIAs. It’s often followed by a confession: “I think I might be…”

The truth? If you’re asking this question, your gut is probably right. But before you make any decisions, it’s essential to do the actual math—not just glance at your payout grid.

Here’s how to calculate it:

Your Quick Compensation Calculation

➡️ Gross revenue divided by your total pay ⬅️
Total pay includes your base salary, bonus, and any equity compensation.

What Does Your Percentage Mean?

🔴 Less than 35%:
You’re grossly underpaid. Yes, absolutely.

If you’ve got entrepreneurial ambitions, this is your wake-up call. Be aware that some firms claim a 40% payout but deduct hidden fees that impact your actual take-home pay. If you’re in this zone, it’s time to explore your options.

The lowest I’ve ever seen? 12-15%. 🤯

🔴 35-50%:
This range is typical at wirehouses or captive firms where you receive significant support—real estate, marketing budgets, compliance, and more. While this compensation may align with market norms for your type of firm, you’re underpaid if you’re open to owning your practice.

Exploring entrepreneurship or joining an independent wealth management firm could significantly boost your pay.

🟡 50-80%:
You might be underpaid.

If you’re an independent advisor or someone who owns their book of business, where you fall in this range will depend on many factors - including the support you’re provided (if you’re an employee advisor). For top producers at captive firms, going independent may offer a higher payout but the decision will be less about money and more about freedom and control over what you’ve worked so hard to build.

Here’s what one advisor, a top performer who moved from Edward Jones to start his independent practice, wrote on LinkedIn “For me, it was about controlling what I had worked so hard to build. The realization that it was not mine and could be pulled away from me quickly was a sobering one. I truly didn't care whether or not I made "more" money. Two years in, however, I can tell you that ownership did result in significantly better economics due to several important factors.”

🟢 80-100%:
You’re probably not underpaid.

However, there may still be opportunities to squeeze out a few more basis points by exploring your options. Just remember, moving is a big decision that involves much more than compensation.

Pay Isn’t Everything, But It Matters

While economics shouldn’t be your sole consideration, your compensation is a strong signal of how much your firm values you, your business, and your clients.

I believe strongly in the statement “Money is not my god.” But let’s not pretend economics don’t matter. They’re a clue—a critical one—about whether your firm values your contributions.

What Should You Do?

If you’re wondering about your future at your current firm or questioning its commitment to your success, it’s worth having a conversation. That doesn’t mean moving firms is always the answer. In some cases, a well-timed renegotiation can resolve the issue without requiring a move.

Whether you’re considering a new direction or simply want to understand the landscape, I’m here to help. Let’s talk. The right move might not be moving at all—it might just be a better deal where you are.

Are you ready to explore your options or have a conversation about your future? Let’s connect.