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The backbone of the �鶹�� advisor compensation and reward plan is quite simple. We reward loyalty, growth and productivity, and we do so with compensation and reward built around three phases: Join.��Grow. Transition. This innovative approach resonates with high producers. According to a recent advisor recruit from��a competitor firm: “I received an offer to join �鶹�� and team with��an advisor with a massive business was planning to retire in 10 years. He could help enhance my productivity, and we could achieve positive synergies working together.”

When we talk about advisor compensation and reward, we look at a cumulative methodology that aligns with three phases:

The join phase

offers a competitive recruit deal potentially composed of an either (1) an��initial loan, salary and deferred awards or (2) an��initial loan, back-end loans & bonuses, and deferred��awards.

We offer a traditional��initial loan, monthly salary or back-end loans earned by the recruit and deferred compensation match for unvested deferred��awards forfeited at a current employer. Unlike many competitor recruit deals, we can offer the option of no performance hurdles for certain recruits. Best of all, we customize each recruit deal so you can have every confidence you will be rewarded for the successful practice you have built.

This phase rewards you based on the revenue��credited to you over the length of your service at the firm. Our incentive grid rate generally caps out at��59.5% and includes production payout (cash) and year-end��award.

In addition to your grid, we currently offer three components of a growth award to reward you for growing at �鶹��. For the net new money growth award advisors who reach the eligible growth rate can receive up to 2%. For the qualified new relationship award advisors can receive up to 1.5%. For the return on asset growth award advisors can receive up to 1%.

We also simplified and increased incentives for cash management by currently paying 5bps production credits across all cash balances and money market funds.

We currently��offer an added incentive for advisors who focus on supporting their clients’ lending needs with flexible financing products. When offering credit lines (non-purpose loans), advisors receive production credits on the full net spread, regardless of the discount. The credited full net spread gets multiplied by the outstanding balance, with an incentive rate of 15%, provided the loans are not deeply discounted. Trailing 12-month production from credit lines, even in cases where there is no payout due to discounting, counts toward calculating an advisor’s incentive rate.

Teaming is also a big part of how we best serve our clients, drive our industry-leading productivity and grow our business. We offer Highest Producer Grid (HPG) for highly productive teams.

Additionally, four Recognition Councils recognize top-performing advisors based on a combination of production and relative performance nationally, and other eligibility factors set by the firm. Recognition Council members participate in training and education events, and receive an enhanced expense allowance for the purpose of promoting business.

Eligibility for phase three can be considered when your recruit deal ends. Our highly flexible ALFA program rewards you for the business you have built over the life of your career and allows you to continue to earn income during the transition period. The maximum incentive is 300% of your trailing 12-month production. After only five years of service at �鶹��, highly productive recruits may be eligible for total incentives of at least 250% of their trailing 12-month production (with a majority funded by the firm, not the receiving FAs).

We are incredibly proud of our ALFA program, which is among the most competitive transition programs in the industry and is focused on what matters most—you and your clients. Aligned with our strategy of recognizing loyalty to �鶹�� over time, we are committed to the ALFA program; for all current �鶹�� Financial Advisors and joiners in the near future the payout percentages under ALFA will be available when you are ready to start your transition process.¹

We understand how vital a transparent and competitive compensation and reward plan can be when thinking about a new career path. Our approach to advisor compensation and reward considers��every phase of your career, from when you start at �鶹�� to when you’re ready to transition from working in the industry. As part of our recruiting process, we spend the time it takes to explore compensation and reward options to aid you in your decision-making. And at the end of the journey, we believe you (like many others who have joined before you) will see why �鶹�� offers an exceptional opportunity.

¹ Notwithstanding this commitment, given the highly regulated nature of our business, the firm must retain the right to amend or eliminate these commitments: (i) if necessary or appropriate to comply with legal or regulatory requirements or any changes in applicable law, rules or regulations or in the interpretation thereof by any regulator, agency or tribunal of competent jurisdiction; or (ii) if the firm determines in its�� discretion that continuing these commitments in their then current form would be impractical or materially adverse to the firm as a result of any changes in applicable law, rules or regulations or accounting standards or in the interpretation thereof by any regulator, agency or tribunal of competent jurisdiction.��

This article is for general information purposes only and should not be construed as, nor is it intended to be, a contract, offer of employment, guarantee of continued employment or representation or guarantee as to future compensation. This article creates no rights of any kind (vested or otherwise) nor does it create a contract or assurance of employment, awards, compensation or benefits. Employment at �鶹�� at all times remains "at-will."

All reward programs at �鶹�� (including, without limitation, those referenced in this article) are governed by the applicable terms and conditions of each program document and applicable agreement(s) (all collectively referred to as the “Plan Documents”). As a result, if there are any conflicts between this article and any of the Plan Documents, the terms of the Plan Documents will govern. Nothing within this article alters or changes any of the Plan Documents.

�鶹�� reserves the right to amend, modify, suspend or terminate any of the Plan Documents, in whole or in part, at any time.

You should not rely upon this article for tax or other filings and should consult your own tax advisor with regard to any tax consequences with respect to your individual tax return.
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