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How to keep your
Pamela Benzer-Corrigan had to revisit her team's compensation to keep them engaged in her practice
by Steve Garmhausen 
The challenge
Wealth Advisors pays its seven advisors a flat salary in order to shield them and their clients from conflicts of interest But this fiduciary friendly policy came with a big drawback-advisors couldn't build books of business, and thus they didn't amass equity that they could cash out at retirement After an advisor left the firm last year because of the issue, CEO Benzer-Corrigan decided it was time to plug that hole.
The solution
GAAM's newly implemented advisor transition plan. Once an advisor is established with the firm, he or she accrues a financial credit after each year of service. "I looked at the dollar value of the relationships they manage, and their salary, and backed in a dollar number," says Benzer-Corrigan. The three-year payout is contingent on the advisor's cooperation during their transition, and the firm asks for a minimum transition period of a year. The bottom line: Benzer-Corrigan and GAAM get to continue their salary based, no-conflict employment model-with less worry that good advisors will feel the need to leave and build their own businesses. If you have a great solution to a big problem that you'd like to share, contact us. |
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SPONSORED CONTENT • American Funds Embracing the Illiquidity Premium Bob Glovsky from The Colony Group moderates a panel of five Barron’s advisors on their strategies for handling illiquid assets. |
