For bank-based advisors thinking about a future as a director at their institution or another bank or credit union, or for existing directors assessing their current situation, the Kehrer Group Survey of Director Compensation offers some insights:
- The larger the firm, the higher the compensation, everything else being equal. If you’re looking for the highest compensation, it’s better to join a larger institution, or one that is growing through acquisitions.
- The ROI on obtaining a CFP or other designations or certifications is not very promising.
- A role managing sales managers instead of managing advisors directly tends to be more remunerative.
- There appear to be limited financial returns to staying in your current situation longer.
- An institution whose incentive plan encourages you to take the actions that you believe will grow the business is more attractive than one that discourages growing or developing your advisors or optimizing their deployment.
About The Kehrer Group Director Compensation Study
In response to many requests from the bank and credit union financial advice community, Kehrer Group conducted a survey of the compensation of the executives who manage the investment services business in their institutions. A total of 55 executives participated. They were asked to provide their compensation plan, their actual compensation for 2023, and details about their span of control, tenure, industry experience, professional designations, and more.
The titles of the positions covered varied widely, including CEO, President, Director of Wealth Management, and Program Manager. The job description included management of the advisor force directly, or through management of one or more sales managers, oversight of operations and compliance, and P&L responsibility to the institution.
We then matched the participating executives against data about their businesses and institutions from the 2023-2024 Kehrer Group Annual Benchmarking Survey. The resulting dataset supported sophisticated statistical analysis to understand the key drivers of compensation for the director role.
The study is available for $1,000 for firms with less than 25 advisors and for $2,000 for larger firms. Participants receive the study with a 50% discount. For further information and to purchase the study, contact tim@kehrergroup.com.