At 3xEquity, we spend a lot of time helping financial advisors understand—and maximize—the transition packages available when moving to a new broker-dealer. These “one-time” deals can be substantial, often delivering 100–350%+ of trailing-12 revenue, and for good reason: firms want your business, your clients, and your leadership.
But the transition check is only part of the equation.
What matters just as much—arguably more over time—is how you’re compensated after the move. How will your new firm treat your production? What’s your grid rate? Are deferred bonuses being dangled… or disappearing?
That’s why we’ve been closely following the Financial Planning series on advisor compensation. In the final installment, reporter Dan Shaw sheds light on one of the industry’s dirty little secrets: the “penalty box”.
The Penalty Box, Explained
If you’re producing under a certain threshold—often around $400,000 in annual revenue—you may already be feeling it. Lower payouts. Fewer bonuses. Rising thresholds to avoid pay cuts. And, in some cases, outright pressure to join a team or head for the exit.
Here’s what that looks like in 2025:
At UBS, a $400K advisor saw base pay fall from $128,000 to $116,000
At RBC, it dropped from $156,000 to $136,000
At Morgan Stanley, you now need to hit $360,000 to avoid a 20% payout rate
And it’s not just the wirehouses. Regionals like Janney and Stifel are tightening up too—streamlining comp grids, trimming tiers, and raising performance bars.
It’s the classic “do more with less” scenario—but for many advisors, it feels more like “do more or leave.”
Why Making a Move Makes Sense
When compensation structures shift against you, inertia becomes costly.
If your grid is shrinking and your base is slipping, now’s the time to consider what a new broker-dealer might offer:
Higher payout percentages for your production band
Better tech, service, and support that helps you grow
More favorable grid tiers and ownership opportunities
And yes—a one-time transition check that can add up to 150% of T12
Plus, there’s the psychological and professional upside of being seen, supported, and rewarded—not penalized.
A move isn’t just about escaping the penalty box. It’s about entering an environment that’s designed to elevate your performance, not punish it.
A Transition Consultant Makes the Process Easy
Here’s where a lot of advisors get stuck: they know their comp is slipping, but they’re unsure where to go, how to evaluate options, or what they’d qualify for in today’s environment.
That’s where working with a transition consultant changes the game.
The right consultant brings:
Confidentiality: No one needs to know you’re exploring options
Data: Real offers, from real firms, tailored to your book
Expertise: Help interpreting deal terms, grid comparisons, and growth incentives
Negotiation power: A better deal, not just the first deal
Why 3xEquity?
At 3xEquity, we’re the transition consultants that top advisors trust. We work with more than 200 broker-dealer and RIA partners across the country, and we’ve helped thousands of advisors—just like you—unlock meaningful compensation improvements by making the right move.
If your grid rate is shrinking and the goalposts are moving, let us help you evaluate your options. We’ll help you:
Understand how much you’re really leaving on the table
Compare real offers—anonymously and with no obligation
Make a move that increases your payout, not your pressure
Bottom line:
If you’re in the penalty box now, it doesn’t get better by staying put. It gets better by looking around.
Ready to see what’s out there?
Start here → 3xEquity.com
