Nearly a third of advisers are paid more than £100,000, Money Marketing research suggests.
66 of the 474 advisers who responded to our poll on how advisers were paid said their average annual remuneration was more than £150,000 year
That represented just under 14 per cent of the sample. A further 17 per cent were paid between £100,000 and £149,999.
At the other end of the scale, around 6 per cent of all advisers say they earned less than £30,000 and a further 9 per cent said they earned less than £40,000.
Independent advisers appear to be paid slightly more than their restricted counterparts; in total just over 32 per cent of independent advisers were paid £100,000 or more, compared to 18 per cent of the restricted adviser population.
Independent advisers were paid on average £89,522, while restricted advisers were paid on average £75,489.
For paraplanners, average remuneration drops to £40,649.
For advisers in firms of between two and five advisers, average remuneration was £86,105.
For firms with between five and 20 advisers, the average remuneration was £88,516.95
30 per cent of all advisers said at least half of their remuneration came from hitting performance-related goals, for example client acquisition, revenue targets or client satisfaction.
However, 45 per cent said they only earned up to 5 per cent of their salary on a performance basis.
28 per cent said that more than half of their remuneration took the form of dividend payments, but 64 per cent said they only paid themselves between 0 and 5 per cent of their salary in dividends.
Roughly speaking, the distribution of performance and dividend payments was the same across the independent and restricted advisers surveyed.
On an optimistic note, 83 per cent of all advisers expect their remuneration to increase over the next five years.
In total, Money Marketing’s survey covered 498 advisers, 405 of which were independent.
22 per cent worked as a one-man band, 39 per cent worked in a firm with between 2 and 5 advisers, around a quarter had between 5 and 20 advisers in their firm, and 13 per cent had over 20.
This article is the latest in Money Marketing’s series on adviser charges and pay. Look out for a full report on the results of the Money Marketing adviser remuneration survey in next week’s magazine.