As a private banker considering a switch to an independent wealth manager, you must compare compensation models carefully alongside the platform’s service offerings. While some companies offer attractive payouts of 70% or more, understand the calculation basis and assess the business’s sustainability. No firm can operate with only a 30% top-line revenue share unless your new employer engages in window-dressing pending a sale.
To assess a compensation model, start by analysing your business plan adapted to the wealth management platform that matches your wealthy clients’ needs. Next, compare payout schemes by beginning with a gross revenue of one million. Challenge the wealth management company to show you the final compensation, including social insurance deductions. Moreover, ask them to demonstrate how the payout would have changed over the last three to four years of business. Be cautious of compensation models with high variable cost allocations. Ensure you have complete control over optimising your payout, with surpluses paid out quarterly.
Always compare apples to apples. If you are not paid first in the value chain of a wealth manager, move on in your job hunt. Understanding your compensation as a relationship manager is vital for making an informed decision. Evaluating potential earnings and benefits helps you choose a sustainable and rewarding career path.
By carefully examining all aspects of the compensation model and platform services, you ensure a successful transition to an independent wealth manager. Prioritise transparency, stability, and a structure that aligns with your long-term professional goals. This thorough approach safeguards your financial future and enhances your ability to serve clients effectively.
In conclusion, compensation as a relationship manager plays a pivotal role in your career move. Weigh all factors carefully to make the best choice for your future.
Source: LinkedIn (SEO adjusted)
