Be supported. Grow your business. Realize your success.
As a financial advisor at Edward Jones, you’ll manage your own office, set your own goals and tailor solutions to meet clients’ needs – you are in control of your compensation. We provide a framework for expected performance as you progress through your career. With no ceiling on your compensation potential, it is tied to the effort you put forth.
Emerging Producer Transition Compensation
As an emerging producer transitioning to Edward Jones, your compensation is structured to reflect the level of your individual practice and designed to optimize your financial opportunity. Every financial advisor’s practice is unique and at varying stages of development, therefore how you are rewarded will be tailored to your situation. These compensation plans include the following base components:
- Salary
- Commissions, fees and Standard Compensation components (see Standard Compensation chart below)
- New asset compensation
Emerging Producers are financial advisors who are in the first few years of building their practice and/or anticipate having less than $30 million in assets under care during their first year with the firm.
Note: If you believe that you exceed these requirements, please review the Experienced Financial Advisor Compensation.
Salary
You will receive a supplemental salary for up to four years – giving you the support you need to build your practice
- Your supplemental salary will be based on a number of factors, including prior experience.
- This salary1 will adjust as you grow your assets and commission level.
Commissions
As you partner with clients to help them achieve their financial goals across the arc of their lives, you’ll earn commissions2.
Commissions start at 9-10% and increase up to 27-30% during your first four years as a financial advisor, based on certain criteria and lifetime tenure as a financial advisor. We anticipate financial advisors are likely to increase their commission payouts approximately every 6 months. In year five, they are likely to increase to 36-40%.
New asset compensation
In addition to salary and commissions, you have the potential to maximize your earnings through qualifying new assets gathered through year five. For every $1 million in qualified new assets you bring to the firm, you can earn $4,000 through year 4 and $2,000 in year 5.
Sample compensation schedule for Emerging Producers*
*These numbers are based on average Emerging Producer actual compensation. Not all financial advisors will receive this compensation. Each financial advisor’s compensation may vary.
Commissions, salary and new asset bonuses are just the beginning.
As your compensation increases in your first years, it is possible that your total payout can hit 50% when you add in travel awards, profit sharing and, in the past, the potential for a limited partnership opportunity**.
Bonuses paid as you earn them.
Bonuses and other variable compensation can make up a significant percentage of your compensation. We don’t hold your bonuses captive to entice you to stay. We structure all bonus opportunities to be paid as you earn them on a trimester basis – so you can get rewarded for your hard work sooner and reach your full potential faster.
- Trimester profitability bonuses – You may earn trimester bonuses, based on the profitability of the firm and your individual branch office. This component is designed to reward financial advisors over and above your regular earnings when your efforts produce a bonus-eligible profit for your branch. Eligibility for the next trimester begins immediately once paid. (For more detail, see Profit and loss statement section below.)
Profit and loss statement
With our entrepreneurial business model, you operate your own office and have the freedom to build your practice your way. You are rewarded for the profit and bonus opportunities you create – with no managers in the branch to take a cut.
Each financial advisor receives a branch profit and loss statement, which includes all revenue and expenses attributable to your branch, minus an allocation for firm support. Branch expenses typically include3:
- Financial advisor earnings
- Branch staff payroll
- Benefits
- Occupancy expenses
- Equipment and access charges
- Telephone, postage, licenses, etc.
Your branch profitability bonus is based on a combination of the firm’s and the branch’s profit. Your branch’s profit is determined by a simple formula:
- Gross Revenue
- + Credits
- + Fees
- – Expenses
- – Firm Support
- Branch Profit
Branch profitability bonuses are calculated and paid on a trimester basis, based on the firm’s current bonus level and the branch’s individual profit.
Profit sharing
As part of “our share the work – share the rewards” culture, each year we distribute a portion of the firm’s net profits in the form of profit sharing. Over the past 10 years, the annual contribution has averaged 4.28% of a financial advisor’s total compensation (including bonuses). This retirement contribution immediately vests upon payment4.
Travel awards
Our Travel Award Program recognizes you for building your practice with strong client relationships. These trips promote knowledge sharing among financial advisors in a relaxed setting where you can recharge.
About half qualify
Travel awards aren’t reserved for just a few top advisors. In the past five years, about half of our financial advisors have earned a trip.
Two chances to earn each year
We offer two six-month qualification periods each year. You also have the flexibility to combine two trips into one “Super Trip.” Trip values average $5,000 to $8,000 for two people and $15,000 for a Super Trip.
All trips include spouses or domestic partners – and many welcome families. Some recent trips have taken our financial advisors to:
- Venice, Italy
- Bali, Indonesia
- Athens, Greece
- Dublin, Ireland
- Malta
- Turks & Caicos
Partnership
In the past, certain financial advisors have had the opportunity to make a limited partnership investment in Edward Jones’ parent company, The Jones Financial Companies, L.L.L.P. (JFC), a Missouri limited liability limited partnership. Eligibility to participate in a limited partnership offering has historically required, among other things, financial advisors to meet certain tenure and performance requirements. As of January 1, 2023, over 34,000 Edward Jones associates, including financial advisors, branch office administrators and home office associates are limited partners of JFC.**
Important Information
**Limited partnership is a security and can only be acquired through a securities offering that complies with the securities laws. The offering of limited partnership can only be made through a registered offering document or pursuant to an exemption. There is no assurance that the firm will engage in future offerings of limited partnership or that the offering criteria will be the same as in the past. Invitation to participate in any offering is at the discretion of the firm.
1 All employee financial advisors receive minimum guaranteed salary (MGS) in an amount determined by federal and state law. MGS does not fluctuate and is paid regardless of quality or quantity of work performed.
2 Your commission payout is subject to the firm’s earning conditions.
3 Financial Advisors may incur additional branch expenses.
4 While the firm has made profit sharing contributions consistently over the past 10 years, please note that it is still discretionary.
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