What is the future of compensation?

Our final analysis of Advisor Group’s 2013 Salary Survey shows commissions still dominate advisor compensation. But in the next five and 10 years, you expect fees to play a larger role. The most dramatic increase will be in the Atlantic: right now, 62% of you say none of your comp comes from fees, but in 2023, that will fall to 38%.

Also by 2023, only 31% of you predict your sole comp will be commissions. But that doesn’t mean you’re moving to fee only: just 7% predict your sole comp will be fee in the same year.

Advisors are also optimistic about compensation growth, with Albertans the most hopeful: they predict a 26% increase within five years and a 42% increase within 10.

n=813. Margin of error: +/-3.4%, 19 times out of 20. Due to rounding, percentages may not add up to 100%.

Data illustrations by Lena Diaz

Advisors react

• Sybil Verch, Raymond James

My plan is not to charge any of my existing clients more. As a matter of fact, I see a lot more downward pressure on the existing fee structure in place today. I think my growth will come from increasing assets and either the number of clients that I deal with or the average portfolio size.

Advisors who run a commission-based business, when they convert to fee-based, may notice a drop in revenue, at least within the first six months. That’s because of the way that the structure is. However, following the transition period, it produces a much more stable revenue stream.

• Jolene Laing, ScotiaMcLeod

Five years from now, I’m aiming for my revenue to be 30% higher than it is today. In my world, that means I will be managing 30% more assets.

38% cite client interest as a reason for not converting to fee

35.5% is the average predicted comp increase in 10 years

21% won’t convert to fee because their business structure doesn’t allow it

When do I have to worry about regulation?See more for more Salary Survey coverage.