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Compensation costs for RIAs that had more than $250 million in assetsunder management represented 71% of revenue at the median in 2018,Charles Schwab reports.

Some three-quarters of firms in Schwab's 2019 Benchmarking Study said they planned to add employees inthe next 12 months. And 42% of firms recruited staff for openpositions from other RIAs in 2018.

Schwab said release of discrete compensationresults from the larger study was intended to help industry leadersdevelop strategies for compensating, motivating and retaining staffby comparing their approaches with those of their peers.

The 2019 benchmarking study, fielded in the first quarter oflast year, comprised self-reported data from 1,310 firms, 984 ofwhich also participated in the compensation portion of thestudy.

Average salaries

The study found that base salaries for client accountmanagement, sales and marketing roles ranged from $57,000 to$146,000 at the median, and total cash compensation from $62,000 to$203,000.

Total median cash compensation, including owner profitdistributions, was $62,000 to $231,000.

Seventy-six percent of client service associates, those whoprovide non-advice-related support to clients, receivedperformance-based incentive pay, more than those in otherpositions.

Twenty-seven percent of senior client accountmangers/relationship managers had compensation tied to revenue, and46% of these employees had some degree of firm ownership — again,more than those in any other role.

Staff in investment positions received base salaries in the$59,000-to-$130,000 range at the median.

Investment professionals' total cash compensation ranged from$65,000 to $161,000, and their total cash compensation, includingowner profit distributions, ranged from $65,000 to $173,000.

More than 60% of all investment positions receivedperformance-based pay, according to the data:

• 85% of portfolio administrators
• 83% of paraplanners (who provide tech support to clientaccount/relationship managers)
• 81% of traders
• 77% of research analysts
• 68% of financial planners
• 61% of investment/portfolio managers

Thirty-three percent of investment/portfolio managers and 14% offinancial planners had some degree of firm ownership: 24% of thelatter and 17% of the former had 50% or more ownership.

For staff in operations and administrative positions, basesalaries ranged from $43,000 to $98,000 at the median, while totalcash compensation — both with and without owner profitdistributions — ranged from $46,000 to $110,000.

Eighty-two percent of technology professionals receivedperformance-based incentive pay, as did 80% of human resource staffand 73% of operations directors/managers, operations associates andreceptionists.

Operations and administration staff were less likely than otherworkers to receive firm equity, but 13% of operationsdirectors/managers did hold some firm ownership, according to thedata.

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