Fall down 6 times, get up 7…that seems to be the mantra from Wells Fargo Advisors at this point.
Our recent talk with Kimberly Ta, Head of FA Integration and Growth, was filled with good news. Yes, bad stuff happened, but its in the rearview. They’ve cleaned up their house and are now a viable solution for many advisors looking for a supportive, and potentially lucrative place to land.
Wells brokers next year will have to hit a single hurdle of $13,500 in monthly production in order to jump from a 22% to a 50% payout rate, executives said. Under the 2021 plan, they had an opportunity to qualify for a lower $12,500 threshold and a higher $14,250 depending on achieving certain production or client-care targets.
The $13,500 hurdle could result in a small haircut for brokers who had qualified for the lower $12,500 option earlier, but that would only affect about 5% of the force, according to John Alexander, head of the Divisional Network for Wells’ Wealth business. The decision to streamline comes after Wells this year raised its hurdles by $1,000, the first increase in seven years.
Wells is also making it easier for brokers or teams who generate over $2 million in annual revenue to qualify for a flat 50% payout. The 2022 plan will eliminate targeted training and best-practice eligibility requirements for the flat payout rate.
In a nod to some broker qualms, the new plan also excises a client segmentation requirement that advisors have 75% of their roster as clients with $250,000 or more in assets to qualify for the flat 50%. (Brokers still face a reduced 20% payout on households under that threshold, which they are encouraged to send to call center brokers or trainees.)
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Thick skin is a must here but boy oh boy could the payoff be big. Right now WFA is overpaying to help advisors over the hump of recent PR and customer confidence missteps (almost exclusively on the banking side of their house, but if you are going to leverage the Wells Fargo name you get the whole enchilada or nothing at all).
Solid management in place, tons of history, and enough capital to power through the biggest of messes, Wells Fargo will be around for a long time and may just be the right choice for you.
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