Wells Fargo Advisors Loses $1B Team, Even as it Bumps Top Payouts
Margaret Price, who started her career in the industry in 1983, has been with Wells Fargo since 1990, according to the publication. Sarah Springer, meanwhile, started her career at Wells Fargo in 2003, InvestmentNews writes. And Grant Shearer, who’s been in the industry since 1996, has been with Wells Fargo since 2001, according to the publication.
Wells Fargo Advisors also lost an advisor in San Rafael, Calif., to Titus Wealth Management, according to a press release from Titus. Scot Lance has been in the industry since 1992 and spent 10 years with Wells Fargo before joining Titus, which is affiliated with LPL Financial, according to his BrokerCheck profile.
Until the most recent quarter, Wells Fargo Advisors has consistently shed advisors after a bogus account scandal shook its parent company’s banking unit last fall. But in the third quarter the company was able to add 37 new advisors, although its advisor ranks were still 3.5% down compared to the year prior.
Perhaps in a bid to make the firm more appealing for its top producers, Wells Fargo is changing its payout structure. The firm’s 2018 compensation plan will raise payout to the top brokers to 50% of the revenue they generate, according to AdvisorHub. There are some stipulations, however: to qualify, the rep must generate a minimum of $2 million in fees and commissions in 2017, and at least 75% of their accounts must with be with households that have a minimum of $250,000 with the company, according to the industry news website.
Wells Fargo will no longer cap payout at 22% for the first $11,500 generated monthly — for those who qualify for the 50% payout, that is, AdvisorHub writes. For everyone else, the 22% payout will apply to the first $11,500 to $13,250 of monthly production, according to the website.
Teams can also qualify for the “no-hurdle” payout if their 12-month trailing production is at least $2 million and the average 2017 revenue for the team members is $800,000, AdvisorHub writes.