How We Compensate Our Investment Professionals
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Since Charles Schwab & Co., Inc. (“Schwab”) was founded more than 40 years ago, we’ve been committed to serving the needs of individual investors. One of our most important beliefs is that you should understand how the financial professionals assisting you are paid, so you can evaluate the recommendations you receive.
In these pages, we identify the different categories of investment professionals who may serve you at Schwab and describe how they are compensated. This includes both Schwab employees and independent branch franchisees (and their employees) operating Schwab Independent Branches. Compensation for investment professionals who provide recommendations is designed to support the provision of advice in the client's best interest.
Please note that the information below describes how Schwab pays employee professionals and shares revenue with Independent Branch professionals, not how you pay Schwab for the services you receive. Information about what you pay Schwab for the services we provide can be found at schwab.com/pricing.
These pages summarize our compensation plans and incorporate all recent changes in effect as of April 1, 2024.
These pages are accurate as of the date indicated above. The most recent information is available at schwab.com/compensationdisclosure.
We invite you to read this information carefully and to contact us at 800-435-4000 if you have any questions. (For multilingual services, call 800-662-6068. For services outside the U.S., call +1-415-667-8400.)
Types of Investment Professionals
1. U.S. Branch Representatives
- VP–Financial Consultants
- Investment Consultants
- Client Relationship Specialists
- Financial Consultant Partners
- VP–Assistant Branch Managers
- VP–Branch Managers
2. International Branch Representatives
- International VP–Financial Consultants
- International Assistant Branch Managers
- International Branch Managers
3. Service Representatives
- Customer Service and Brokerage Service Representatives
4. Specialty Representatives
- New Client Investment Consultant
- Investor Development Consultants
- Financial Consultants (Financial Solutions Branch)
- Branch Managers (Financial Solutions Branch)
- Financial Consultants (Participant Investor Concierge)
- VP–Senior Wealth Consultants
- Wealth Consultant Partners
- Director–Schwab Private Wealth Services
- VP–Corporate Financial Consultants
- VP–Senior Client Consultants
- Advice Consultants
- Trader Sales Representatives
- Fixed Income Specialists
- Regional Annuity Specialists (Annuity Specialists)
- Regional Banking Managers
- Portfolio Solutions Group Investment Consultants
- Financial Planning Specialists
- Tax, Trust & Estate Specialists
- Equity Compensations Specialists
- Portfolio Transition Specialists
5. Schwab Independent Branch Services Representatives
- Independent Branch Leaders
- IB Representatives
6. Schwab Wealth Advisory, Inc.
1. U.S. Branch Representatives
VP–Financial Consultants
What They Do
VP–Financial Consultants work with clients both in person (through our U.S. branch office locations) and by phone. They develop new and existing client relationships, generally using a planning-based approach to understand a client’s needs and objectives. They provide education and recommendations to help clients select products—including investments, banking, and insurance—that meet client objectives. Each Financial Consultant supports a practice, which includes clients who are assigned to that Financial Consultant as a primary point of contact. Financial Consultants may also assist clients who are not in their practice.
Compensation
Financial Consultants receive a base salary for serving clients. Depending on their professional experience and past work performance, some Financial Consultants also receive Relationship Pay. In addition, Financial Consultants receive Solutions Pay. Financial Consultants may also be eligible to participate in a Career Achievement Award Program, which rewards and retains our top talent for being dedicated to Schwab and our clients.
Financial Consultants may give financial planning and investment advice to some of their clients. Although Schwab as a company may earn more or less revenue depending on the investment product or portfolio management service a Financial Consultant recommends, we have designed their compensation based on the time, complexity, and expertise necessary to understand, recommend, and provide ongoing service to a client for different categories of investment products and portfolio management services. Schwab.com/schwabcompensation includes more information on how Schwab as a company earns revenue.
Relationship Pay
Relationship Pay compensates a Financial Consultant for maintaining relationships with and providing service to clients in their practice. Compensation is divided into three categories. The first two have different asset multiplier rates,* which reflect the time, complexity, and expertise associated with recommending and servicing accounts in each category (“compensation factors”). Category 1 covers fee-based portfolio management services, and Category 2 covers portfolio management referrals and non-managed accounts. The asset multiplier rates change monthly based on fluctuations over time in assets and revenue associated with the products and services in Category 1 and Category 2.
*The asset multiplier rate range is based on fluctuations in revenue and assets over time.
We aggregate within each of these two categories a range of advisory programs or investment products that are similar in terms of complexity and the time, on average, it is expected to take a Financial Consultant to work with a client. We do this to guard against a Financial Consultant having undue incentives when giving investment advice. Relationship Pay applies whether a Financial Consultant recommended or sold the product or service to the client, or the client made the purchase or enrollment decision on his or her own.
As shown in the tables below, Financial Consultants receive more compensation for some products and services than others. Financial Consultants are eligible to receive 7%, 8%, or 9% of the amount resulting from application of the asset multiplier rate, depending on a Financial Consultant’s professional experience and past work performance.
The third category of Relationship Pay is for credit products.
Relationship Pay Based on Account Balances
Category 1Portfolio Management Services (typically have more involved ongoing service needs) |
Category 1Annual Relationship Pay per $100,000 of Client Balances |
|
The asset multiplier rate used for Category 1 could range between 40 and 50 basis points, which is multiplied by a Financial Consultant’s particular payout rate. This results in a payment between: $28.00 (100,000 × .004 × .07) and $32.00 (100,000 × .004 × .08), and $36.00 (100,000 × .004 × .09) and |
Category 2Portfolio Management Referrals and non-managed Accounts (typically have less involved ongoing service needs) |
Category 2Annual Relationship Pay per $100,000 of Client Balances |
Balances in self-directed or non-managed accounts are treated the same, regardless of whether the assets are in affiliated or third-party products or different share classes. The payout rate is the same for stocks, bonds, mutual funds, ETFs, cash (including Schwab Bank deposits), option positions, and 529 accounts. |
The asset multiplier rate used for Category 2 could range between 11 and 14 basis points, which is multiplied by a Financial Consultant’s particular payout rate. This results in a payment between: $7.70 (100,000 × .0011 × .07) and $8.80 (100,000 × .0011 × .08) and $9.90 (100,000 × .0011 × .09) and |
Category 3Non-investment Advice Products and Activities |
Credit Products:
Financial Consultants receive a payment of 4.4 basis points per $100,000 of client loan balance. This results in a payment of $44 per $100,000 loan ($100,000 × .00044). |
When a client in a Financial Consultant’s practice is enrolled in a participating portfolio management service and receives a refund of their program fee under the Schwab Satisfaction Guarantee, Schwab will debit the amount of Relationship Pay the Financial Consultant receives by a percentage of the amount of the fee refunded.
Solutions Pay
Solutions Pay compensates a Financial Consultant for attracting new clients and assets to Schwab and recommending products and portfolio management services. It is a one-time payment and applies whether a Financial Consultant recommends a product or service or the client makes the purchase or enrollment decision on his or her own. The exceptions are for Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium®, which the Financial Consultant must recommend, and into which the client must enroll in order for the Financial Consultant to receive Solutions Pay.
Category 1, asset consolidation, pays the same rate no matter what investment product a Financial Consultant might recommend or a client might purchase on his or her own. Category 2, which includes most portfolio management services (except for Wasmer Schroeder™ Ultra Short Strategies and Wasmer Schroeder™ Treasury Bond Ladder Strategies), pays the same rate no matter which service a Financial Consultant might recommend. The different rates paid between Category 1 and Category 2 are based on the additional time, complexity, and expertise necessary to assess a client’s needs and recommend our portfolio management services. Category 3, other products, includes activities in which a Financial Consultant is not providing investment advice. Generally, if assets leave a Financial Consultant’s practice, that loss is netted against asset gains to a Financial Consultant’s practice for purposes of calculating Solutions Pay.
Solutions Pay is paid to the Financial Consultant monthly.
Solutions Pay
Category 1Asset Consolidation |
Category 1Financial Consultant’s Compensation1 |
Category 1One-Time Solutions Payment |
|
Net Asset Flows (total inflow of client assets minus the total outflow of client assets) |
0.0008 × Net Asset Flows |
$80 per $100,000 of Client Balances |
1 Schwab may cap the amount of incentive compensation that a Financial Consultant can earn from any one client from the Solutions Pay component.
Category 2Portfolio Management Services* |
Category 2Financial Consultant’s Compensation1 |
Category 2One-Time Solutions Payment |
|
0.002 × amount enrolled |
$200 per $100,000 of Client Balances |
|
Annuities by a Financial Consultant with an active insurance license |
0.002 × annuity amount |
$200 per $100,000 of Client Balances |
*Excludes Wasmer Schroeder™ Ultra Short Strategies and Wasmer Schroeder™ Treasury Bond Ladder Strategies.
1 Schwab may cap the amount of incentive compensation that a Financial Consultant can earn from any one client from the Solutions Pay component.
Category 3Other Products |
Category 3Financial Consultant’s Compensation1 |
Category 3One-Time Solutions Payment |
|
Introductions to Charles Schwab Bank, SSB for mortgages by Financial Consultants who are also employees of Charles Schwab Bank, SSB |
0.002 × loan amount for new mortgages; 0.0011 × loan amount for refinanced loans |
$200 per $100,000 of loan amount $110 per $100,000 of loan amount |
|
Referrals to Schwab Bank Pledged Asset Line® (PAL) |
$120 per opened account |
$120 |
|
Schwab Personal Trust–Successor Trustee |
$175 per household designation |
$175 |
|
Referrals to a Schwab Charitable™ donor-advised fund2 |
$175 per converted referral for new accounts over $25,000 |
$175 |
|
Referrals to Life Insurance by a Financial Consultant with an active insurance license |
$450 per converted referral |
$450 |
|
Referrals to Long-Term Care Insurance by a Financial Consultant with an active insurance license |
$450 per converted referral |
$450 |
|
Referrals to Schwab Advisor Services™ |
$800 for referrals up to $30 million; $3,500 for referrals of $30+ million |
$800 or $3,500 |
|
Referrals to Schwab Retirement Plan Services or Retirement Business Services |
0.002 × amount of assets referred; $250,000 minimum asset level to $10,000,000 maximum asset level |
$500 for a $250,000 referral |
1 Schwab may cap the amount of incentive compensation that a Financial Consultant can earn from any one client from the Solutions Pay component.
2 Schwab Charitable is the name used for the combined programs and services of Schwab Charitable Fund™, an independent nonprofit organization. Schwab Charitable Fund has entered into service agreements with certain affiliates of The Charles Schwab Corporation.
Bringing Together a Financial Consultant’s Pay
As an example, suppose an in-practice client of a Financial Consultant brings a portfolio of $500,000 to Schwab and invests it as follows:
- $200,000 into Schwab Wealth Advisory™
- $100,000 into Mutual Funds
- $100,000 into ETFs
- $100,000 in Cash
The Financial Consultant would earn annual compensation as follows:
Payment Type |
Description |
Compensation Amount |
|
Solutions Pay (one-time payments) |
$500,000 transfer into Schwab |
$400 |
|
Solutions Pay (one-time payments) |
$200,000 enrollment into Schwab Wealth Advisory™ |
$400 |
|
Relationship Pay (annual payments) |
$200,000 balance in Schwab Wealth Advisory™ |
$56.00–$90.00 |
|
Relationship Pay (annual payments) |
$100,000 balance in Mutual Funds |
$7.70–$12.60 |
|
Relationship Pay (annual payments) |
$100,000 balance in Cash |
$7.70–$12.60 |
|
Relationship Pay (annual payments) |
$100,000 balance in ETFs |
$7.70–$12.60 |
|
|
|
TOTAL |
Investment Consultants
What They Do
Investment Consultants assist and meet with clients who are not assigned to a Financial Consultant’s practice as well as with potential new clients to identify and analyze their financial needs.
Compensation
In addition to a base salary, Investment Consultants are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of service quality, client satisfaction, teamwork, and the provision of education and recommendations to our clients.
Client Relationship Specialists
What They Do
Client Relationship Specialists respond to the specific needs of clients and may direct clients to the appropriate Schwab representative.
Compensation
In addition to a base salary, Client Relationship Specialists are eligible to earn an annual bonus that is funded based on Schwab’s performance and determined based on manager discretion, which may include consideration of service quality, client satisfaction, sales support, and teamwork.
Financial Consultant Partners
What They Do
Financial Consultant Partners respond to the specific needs of clients and are assigned to specific Schwab representatives.
Compensation
In addition to a base salary, Financial Consultant Partners are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of service quality, client satisfaction, sales support, and teamwork.
VP–Assistant Branch Managers
What They Do
VP–Assistant Branch Managers lead a local market team composed of Financial Consultants, Investment Consultants, Financial Consultant Partners, Client Relationship Staff, and various internal and external partners. They provide local strategic direction and execution support, and they recruit and manage the local team.
Compensation
In addition to a base salary, Assistant Branch Managers are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of branch growth and productivity, client satisfaction, and development of staff.
VP–Branch Managers
What They Do
VP–Branch Managers lead a local market team composed of Financial Consultants, Investment Consultants, Financial Consultant Partners, Client Relationship Staff, and various internal and external partners. They provide local strategic direction and execution support, and they recruit and manage the local team. They are responsible for the performance of their branch.
Compensation
In addition to a base salary, Branch Managers are eligible to earn an annual bonus that is funded based on Schwab’s performance and determined based on manager discretion, which may include consideration of branch growth and productivity, client satisfaction, and development of staff. A Branch Manager’s bonus can be a significant amount, typically, but not limited to, approximately 45% of their total compensation.
Additionally, our U.S. Branch Representatives may be eligible for a discretionary incentive based on Client Net New Assets.
2. International Branch Representatives
International VP–Financial Consultants
What They Do
International VP–Financial Consultants provide services primarily to our clients residing outside the United States.
Compensation
These Financial Consultants are paid according to the same Solutions Pay incentive plan as U.S. Financial Consultants, with the exception that some products available in the U.S. are not available to clients residing in some non-U.S. jurisdictions. These Financial Consultants do not receive Relationship Pay based on Account Balances.
International Assistant Branch Managers
What They Do
International Assistant Branch Managers lead a local market team composed of Financial Consultants, Investment Consultants, Financial Consultant Partners, Client Relationship Staff, and various internal and external partners. They provide local strategic direction and execution support, and they recruit and manage the local team.
Compensation
In addition to a base salary, International Assistant Branch Managers are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of branch growth and productivity, client satisfaction, and development of staff.
International Branch Managers
What They Do
International Branch Managers lead a team composed of International Financial Consultants, Associate Financial Consultants, and Client Service Staff. Branch Managers provide strategic direction and execution support, recruit and manage the team, manage various risk factors around our business and accounts, and advance the Schwab brand.
Compensation
In addition to a base salary, Branch Managers are eligible to earn an annual bonus that is funded based on Schwab’s performance and determined based on manager discretion, which may include consideration of branch growth and productivity, client satisfaction, and development of staff.
3. Service Representatives
Customer Service and Brokerage Service Representatives
What They Do
Customer Service and Brokerage Service Representatives provide service to clients via telephone, email, and online chat; respond to telephone inquiries from clients about the products and services we offer; and may contact clients by phone or email.
Compensation
In addition to a base salary, these representatives are eligible to earn a quarterly bonus that is based on measured performance in adherence to scheduled availability and customer satisfaction and an annual bonus that is funded based on Schwab’s performance and determined based on manager discretion, which may include consideration of productivity, client satisfaction, quality assurance, internal referrals to Schwab teams, teamwork, and client feedback.
4. Specialty Representatives
New Client Investment Consultants
What They Do
New Client Investment Consultants interact with prospects and clients via telephone, through inbound and outbound calls. They work to understand client needs, discuss solutions, and introduce clients to a fully integrated relationship with Schwab. They also make referrals to partners to help clients select products that meet their objectives.
Compensation
In addition to a base salary, these consultants are eligible to earn additional incentive compensation based on the following criteria:
- Client Navigation—A measurement of Net Assets Flow and enrollments in Portfolio Management Services. The New Client Investment Consultant is paid the same for Portfolio Management Services, regardless of what solution the client elects.
- Manager Discretion—A quarterly discretionary incentive determined based on manager discretion, which may include consideration of service quality, client satisfaction, teamwork, and the provision of education and referrals to our clients.
Investor Development Consultants
What They Do
Investor Development Consultants interact with prospects and clients via telephone, through inbound and outbound calls. They work to understand client needs, discuss solutions, and introduce clients to a fully integrated relationship with Schwab. They also make referrals to partners to help clients select products that meet their objectives.
Compensation
In addition to a base salary, Investor Development Consultants are eligible to earn an annual bonus that is funded based on Schwab’s Retail Net New Assets performance and determined based on manager discretion, which may include consideration of the service quality, client satisfaction, teamwork, and the provision of education and referrals to our clients.
Financial Consultants (Financial Solutions Branch)
What They Do
Financial Consultants (Financial Solutions Branch) work with clients in a phone-based and virtual meeting environment. They develop new and existing client relationships, taking a planning-based approach to understand a client’s needs and objectives. They provide education and recommendations to help clients select products—including investments, banking, and insurance—that meet client objectives. Each Financial Consultant supports a practice, which includes clients who are assigned to that Financial Consultant as a primary point of contact.
Compensation
In addition to a base salary, Financial Consultants (Financial Solutions Branch) are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of client satisfaction, service quality, client retention, contributions to the team, and Net New Assets to Schwab.
Branch Managers (Financial Solutions Branch)
What They Do
Branch Managers lead centralized teams of Financial Consultants (Financial Solutions Branch) who work with clients in a phone-based and virtual meeting environment. They provide strategic direction and execution support, and they recruit and manage the centralized team. They are responsible for the performance of their branch.
Compensation
In addition to a base salary, Branch Managers are eligible to earn an annual bonus that is funded based on Schwab’s performance and determined based on manager discretion, which may include consideration of client retention, branch growth and productivity, client satisfaction, and development of staff.
Financial Consultants (Participant Investor Concierges)
What They Do
Financial Consultants (Participant Investor Concierges) provide help to participants of Schwab Corporate & Retirement Services (SCRS) including, but not limited to, Retirement Plan Services (RPS), Stock Plan Services (SPS), and Designated Brokerage (DB). For example, if a participant is eligible for a distribution or a rollover, the Financial Consultant discusses the participant’s options, which may include keeping the participant’s assets in their retirement plan, or recommendations to roll over to a Schwab IRA. Based on the participant’s needs and objectives, the Financial Consultant may discuss and/or recommend additional products and solutions.
Compensation
In addition to a base salary, these Financial Consultants have the potential to earn additional incentive compensation based on the following criteria:
- Service Quality—A quarterly discretionary component that evaluates the Financial Consultant’s performance in educating participants about their options, which may include taking a distribution, leaving their money in their plan, rolling over to a current employer’s retirement plan, or opening and rolling over to a Schwab IRA. This also includes all processing and follow-up work involved with servicing participants.
- Client Navigation—A measurement of Net New Assets brought to Schwab.
VP–Senior Wealth Consultants
What They Do
VP–Senior Wealth Consultants provide dedicated relationships to clients with at least $10M in investable assets at Schwab. They develop new and existing client relationships, taking a planning-based approach to understand a client’s needs and objectives. They provide education and recommendations to help clients select the products that help meet their objectives and work with a team of experts in order to serve their complex and unique needs.
Compensation
In addition to a base salary, VP–Senior Wealth Consultants are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of client satisfaction, service quality, client retention, contribution to the team, and Net New Assets to Schwab.
Wealth Consultant Partners
What They Do
Wealth Consultant Partners respond to the specific needs of clients and are assigned to specific Schwab representatives.
Compensation
In addition to a base salary, Wealth Consultant Partners are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of service quality, client satisfaction, sales support, and teamwork.
Director–Schwab Private Wealth Services
What They Do
Director–Schwab Private Wealth Services is a business development role. They are responsible for prospecting, qualifying, and closing new SPWS accounts to Schwab. They serve as a resource and subject matter expert on SPWS and the specific needs of UHNW clients.
Compensation
In addition to a base salary, Directors – Schwab Private Wealth Services have the potential to earn additional incentive compensation based on Net New Assets brought to Schwab.
VP–Corporate Financial Consultants
What They Do
VP–Corporate Financial Consultants provide dedicated in-person relationships to employees of select corporate partners. They develop new and existing client relationships, taking a planning-based approach to understand a client’s needs and objectives. They provide education and recommendations to help clients select the products that help meet their objectives.
Compensation
In addition to a base salary, Corporate Financial Consultants are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of client satisfaction, service, quality of financial plans delivered, feedback from the corporate client, and retention of plan assets.
VP–Senior Client Consultants
What They Do
VP–Senior Client Consultants work with clients both in person (through our U.S. branch office locations) and by phone. They develop new and existing client relationships, generally using a planning-based approach to understand a client's needs and objectives. They provide education and recommendations to help clients select the products that help meet their objectives and work with a team of experts in order to serve their complex and unique needs.
Compensation
In addition to a base salary, VP–Senior Client Consultants are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of client satisfaction, service quality, client retention, contribution to the team, and Net New Assets to Schwab.
Advice Consultants
What They Do
Advice Consultants provide education and share recommendations made by a third-party advice vendor (e.g., Morningstar) to participants of retirement plans serviced by Schwab Retirement Plan Services, Inc. (SRPS). Services may include personalized one-on-one consultations, evaluation of investments and asset allocation, and discussion of financial goals (including retirement) to facilitate the third-party advice recommendations. The third-party advice provider takes into consideration both investments in employer-sponsored retirement plans and other assets held outside of those plans, in developing the plan investment advice. During the consultations, if a participant inquires about a product or service of an SRPS affiliate, Advice Consultants will connect the participant with a representative of the applicable SRPS affiliate.
Compensation
In addition to a base salary, Advice Consultants are eligible to earn an annual bonus that is funded based on Schwab’s performance and determined based on manager discretion, which may include consideration of metrics based on service quality and client satisfaction.
Trader Sales Representatives
Trader Sales Representatives identify trading clients who can benefit from Schwab's trading tools and education. They do not provide trading advice. The group consists of regionally based Regional Investment Strategists who work with local branches, as well as phone-based Trading Consultants and Education Specialists.
- Regional Investment Strategists (RISs)
What They Do
Regional Investment Strategists support a designated region of clients assigned to local Financial Consultants’ practices. They work with Financial Consultants by serving as their primary point of contact for trading clients. They also assist high net worth clients not assigned to a Financial Consultant's practice.
Compensation
In addition to a base salary, RISs are eligible to earn an annual bonus that is funded based on Schwab’s performance and determined based on manager discretion, which may include consideration of frequency of one-on-one client consultations, regional client growth and retention, local market seminars and events hosted, market area lead-flow generation, and client satisfaction.
- Trading Consultants
What They Do
Trading Consultants interact with prospects and clients via telephone, through inbound and outbound calling. They work to understand client trading needs and position appropriate trading tools, research and education.
Compensation
In addition to a base salary, these consultants have the potential to earn additional monthly and quarterly incentive compensation. The monthly incentive is based on the following criteria:
- Bringing Net New Assets to Schwab.
- Referring a client who attends a new client/options consultation, a consultation with a Regional Investment Strategist, an in-branch workshop, or a seminar.
The quarterly discretionary incentive is determined based on manager discretion, which may include consideration of efficiency, productivity, partnership, focus negotiation, service quality, and accuracy.
- Trader Education Specialists
What They Do
Trader Education Specialists partner with Trading Consultants to help onboard new clients. Education Specialists conduct phone-based, customized, one-on-one consultations with new clients to teach them how to leverage Schwab’s trading platforms, tools, and research resources.
Compensation
In addition to a base salary, Education Specialists are eligible to earn an annual bonus that is funded based on Schwab’s performance and determined based on manager discretion, which may include consideration of quantity of one-on-one client consultations, quality of consultation interactions, client engagement, and whether clients leverage subsequent education.
Fixed Income Specialists
Fixed Income Specialists serve clients with fixed income investing needs. The group consists of Regional Bond Specialists and Bond Investment Specialists. Neither group earns commissions on transactions. Nor does it matter whether a transaction is executed as agent, as a riskless principal, or from Schwab’s own inventory.
- Regional Bond Specialists
What They Do
Regional Bond Specialists provide advice and service to Schwab clients specific to their fixed income investing needs.
Compensation
In addition to a base salary, these specialists are eligible to earn an annual bonus that is funded based on Schwab’s performance and determined based on subjective measures at manager discretion, which may include relationship management, business development, quality assurance, teamwork, client reviews, and field partnerships.
- Bond Investment Specialists
What They Do
Bond Investment Specialists advise and serve clients with fixed income investing needs by responding to inbound phone calls.
Compensation
In addition to a base salary, these specialists are eligible to earn an annual bonus that is funded based on Schwab’s performance and determined based on manager discretion, which may include consideration of quality assurance, teamwork, and initiative.
Regional Annuity Specialists (Annuity Specialists)
What They Do
The Annuity Specialists provide Financial Consultants and clients with general information and advice on annuity products and services, and the sale of annuity products offered by Schwab. They also provide existing annuity clients with ongoing service and support.
Compensation
In addition to a base salary, the Annuity Specialists are eligible to earn an annual bonus that is funded based on Schwab’s performance and determined based on manager discretion, which may include consideration of annuity sales and guidance, client feedback, and teamwork. The compensation is not tied to the sale of any specific annuity or annuity type.
Regional Banking Managers
What They Do
As Charles Schwab Bank, SSB employees, Regional Banking Managers provide Financial Consultants and clients with information about bank lending products. They also provide existing clients with ongoing service.
Compensation
In addition to a base salary, Regional Banking Managers are eligible to earn quarterly bonuses that are determined based on the sales of bank lending products, including PAL, First Mortgage, and HELOC.
Portfolio Solutions Consultants
What They Do
Portfolio Solutions Consultants are an ongoing resource for clients who are not currently assigned to a Financial Consultant and are invested in most Schwab managed solutions. The Portfolio Solutions Consultants are available to provide portfolio analysis, retirement planning, and advice regarding other wealth management topics. As part of any client conversation, the Portfolio Solutions Consultants ensure ongoing suitability of investments and make recommendations from a variety of investment products offered at Schwab.
Compensation
In addition to a base salary, these representatives are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of the quality of the representative’s interactions with clients, client satisfaction, teamwork, training, professional development, and accuracy.
Financial Planning Specialists
What They Do
Financial Planning Specialists work with clients to create a financial plan and personalized wealth management strategy that addresses topics such as retirement planning, distribution and income strategies, education planning, risk management, and estate planning.
Compensation
In addition to a base salary, these specialists are eligible to earn an annual bonus based on factors such as corporate and individual performance.
Tax, Trust & Estate Specialists
What They Do
Tax, Trust & Estate Specialists work with clients to provide personalized tax, trust & estate educational information that complements the client's overall wealth management strategy.
Compensation
In addition to a base salary, Tax, Trust & Estate Specialists are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of client satisfaction, relationship management, quality assurance, teamwork, and partnership feedback.
Equity Compensation Specialists
What They Do
Equity Compensation Specialists assist clients and prospects with strategies to manage the value of their company stock and options more effectively. The consultation is highly customized and includes an action plan that considers general tax principles, risk management/diversification needs, target exercise prices, scenario management, and personal considerations.
Compensation
In addition to a base salary, these specialists are eligible to earn an annual bonus based on factors such as corporate and individual performance.
Portfolio Transition Specialists
What They Do
Portfolio Transition Specialists are trusted partners to Financial Consultants, Wealth Consultants & Wealth Advisors, and their clients or prospects seeking to transition their existing investment holdings into other products or service while considering estimated potential tax liabilities. These transition analyses deliver actionable and customized portfolio strategies to drive better client outcomes.
Compensation
In addition to a base salary, these specialists are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion.
5. Schwab Independent Branch Services Representatives
Schwab Independent Branch Leaders (IBLs) are franchisees who operate Schwab Independent Branches pursuant to a franchise agreement with Schwab. IBLs may employ IB representatives (Financial Consultants, Associate Financial Consultants, and Client Service Specialists, who may or may not be registered).
IB registered personnel are not Schwab employees, but they are registered representatives of Schwab for purposes of securities regulations. IBLs receive a portion of the revenue generated by the activities and assets in accounts of Schwab clients assigned to their independent branches. IB representatives also may share in the revenue earned by their IBL employer. Schwab notifies clients when they are assigned to an Independent Branch.
Independent Branch Leaders
Payout
IBLs are not paid commissions for the sale of any specific product or service, nor does Schwab pay them a salary or the incentive compensation earned by representatives who are employed by Schwab. Instead, they earn revenue from their business, the overall amount of which is based on the revenue Schwab earns from clients whose accounts are assigned to their independent branch, and revenue for insurance and financial plans as described below.
For purposes of revenue earned by the IBLs, the assets in accounts assigned to them are divided into two categories. As with employee representatives, the difference in average rates between these two categories is based on the time and expertise necessary to recommend and service different products and programs and the inherent complexity and variety attributable to such products and services. Because IBLs are franchisees rather than employees, and because they are therefore expected and encouraged to have more individual control of the management of their time, only two rates are applied to the assets assigned to them.
- Advisor Assets—Assets in accounts enrolled in Schwab Wealth Advisory™, Schwab Managed Portfolios™, Schwab Managed Account Select®, Schwab Managed Account Connection® (discretionary wrap-fee programs that include ThomasPartners® Strategies, Windhaven® Strategies, and Wasmer Schroeder™ Strategies), Schwab Intelligent Portfolios Premium®, USAA Managed Portfolios®, or accounts managed by an independent third-party investment advisor to whom the client was referred through the Schwab Advisor Network® service, or assets invested in a registered annuity; and
- Non-Advisor Assets—Assets not in the Advisor Assets category, which include stocks, bonds, mutual funds, Schwab Intelligent Portfolios®, and ETFs, as well as payment for providing cash management services.
Each month, Schwab calculates and applies an Advisor Assets Average Rate and a Non-Advisor Assets Average Rate to the assets in accounts assigned to all Schwab Independent Branches.
The rates are calculated by looking at 12-month trailing assets and revenue from all Schwab Independent Branch accounts.
Schwab applies these Average Rates to the daily average assets in each category in accounts assigned to individual Schwab Independent Branches. The Average Rates change monthly, but the Advisor Assets Average Rates are higher based on the factors noted above. An IBL, therefore, can earn more money when recommending that a client enrolls or opens an account in one of the services in the Advisor Assets category.
Schwab also calculates the actual revenue earned by Schwab (often one-time but in some cases recurring) from sales of Immediate and Fixed Deferred Annuities, Long-Term Care Insurance, Permanent Life Insurance, Disability Insurance, and Term Life Insurance (collectively, “Insurance Products”). Additionally, IBLs may refer clients to the Schwab Plan Comprehensive or Personal Financial Plan (collectively, “Fee-Based Financial Plans”).
After adding together the figures for Advisor Assets and Non-Advisor Assets, Schwab applies a multiplier based on the tenure of the IBL and type of client. In years one through five, the IBL’s payout share is adjusted using a multiplier ranging from 185% to 55%, and then, in years six and beyond, the payout share is adjusted using a 50% multiplier. Then revenue from insurance products and fee-based financial plans, adjusted using the 50% multiplier in all years, are added to the Advisor Assets and Non-Advisor Assets amounts. (Note: For assets of clients who transition to Schwab from an IBL’s prior firm, the IBL may elect a constant multiplier of 50% in exchange for an increased ability to ask such clients to transition away from Schwab if the franchise agreement ends.)
Finally, Schwab deducts certain monthly fees and expenses from the total adjusted revenue amount that the IBL owes to Schwab under the franchise agreement. This results in a net payout for the month.
IB Representatives
Compensation
IB Representatives are employees of the IBL. They receive a salary paid by the IBL and, as determined by the IBL as their employer, may be eligible for a bonus.
The criteria used to determine the amount of the bonus may include such factors as Net New Assets, Branch Assets, and Client Promoter Score. These criteria do not include recommendations of any specific product, offer, or service.
6. Schwab Wealth Advisory, Inc.
All personnel who provide planning, portfolio advice, and service within Schwab Wealth Advisory™ (“SWA”), including all Wealth Advisors, Associate Wealth Advisors, Specialists and the SWA service team are employed by Schwab Wealth Advisory, Inc., (“SWAI”) a separate but affiliated Retail Investment Adviser.
Schwab Wealth Advisory, Inc. employees do not receive differential compensation based on what Schwab Wealth Advisory™ advice providers recommend to clients, nor is their compensation based on investment performance. In addition to a base salary, SWAI employees are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion.
If you have questions about information contained in these pages, please call 800-435-4000. For media inquiries, please call the Schwab Corporate Public Relations hotline at 415-667-9500.
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Please note that the information in these pages does not apply to Schwab accounts managed by an independent investment advisor. Independent investment advisors are not owned by, affiliated with, or supervised by Charles Schwab & Co., Inc. (“Schwab”).
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E-0424-5865318444383076363 REG31752-50 (04/24)