Merrill Lynch has unveiled details of its 2026 compensation plan, and one change stands out above the rest: the definition of a “small household” is doubling from $250,000 to $500,000 in assets.
On the surface, it may look like just a recalibration for inflation and market growth. But in practice, it means that more client accounts — some of them meaningful relationships for advisors — will now generate reduced payouts. Under the new plan, households between $250,000 and $500,000 will only receive a 20% grid rate, while anything below $250,000 continues to pay nothing. For advisors whose books include a mix of accounts, that shift could take a noticeable bite out of their compensation.
This follows a broader trend across the wirehouses: as firms push for scale and efficiency, they’re quietly devaluing smaller households. Morgan Stanley made a similar move last year, raising its revenue hurdle to $360,000 and effectively nudging smaller advisors toward the exit (read more here). The pressure is clear — advisors are being told to go upmarket, consolidate around larger clients, and deepen ties to the bank. While some may be able to absorb the hit or quickly grow past it, others will see years of hard-earned relationships suddenly treated as second-tier.
For advisors already feeling stretched, this may be the nudge that prompts a bigger decision. If Merrill no longer values the clients you’ve built your career on, should you keep playing by their rules? Or is it time to consider a move to a firm where all of your relationships matter — and where transition packages can offset the costs of change?
That’s where 3xEquity comes in. We specialize in helping advisors evaluate offers, compare broker-dealers, and secure the best possible transition deal. If Merrill’s new comp structure has you thinking twice about your future, let’s talk.
