2020 FINANCIAL ADVISOR COMPENSATION PLAN - We Think You'll Like It Here - Stifel
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FINANCIAL ADVISOR
COMPENSATION PLAN
2020
We Think You’ll Like It Here
COMPENSATION PHILOSOPHY
PRODUCT
NEUTRAL Compensation Philosophy
compensation Our Compensation Plan1 recognizes that larger gross
production is generally more profitable to the firm;
therefore, as a Financial Advisor, you receive a greater
share of the revenue as your level of production
SWAP increases – providing you with unlimited earning
potential. In addition, our commission grid differs
STIFEL WEALTH from that of other firms, as it does not differentiate
ACCUMULATION between products.
PLAN
COMPREHENSIVE
Stifel’s commission grid illustrates the firm’s
BENEFITS philosophy of operating like a partnership. Using
PACKAGE 25% for the first $12,000 of monthly gross contributes
towards fixed costs, such as back office processing,
market data expenses, technology, rent, utilities,
insurance, and more. Thereafter, commissions for
production over $12,000 are set at 50% – in true
Recognition partnership fashion. No tricks. No gimmicks. Our
TRIPS advisors determine what products and services best
meet their client’s needs, and are compensated
TAX-ADVANTAGED appropriately – it’s just that simple.
DEFERRED
COMPENSATION Because Stifel believes that our Financial Advisors are
the driving force behind our firm’s success, we offer
a competitive and attractive compensation package.
Stifel offers a compensation payout structure that
exceeds that of many other firms.
UNLIMITED 1
Minimum production requirement of $225,000 annually for grid
EARNING compensation. Production below minimum qualifies for a flat 25% payout.
potential
Stifel and I share the same philosophy to always try to improve the way we do
business. The firm knows that we all operate in a very competitive environment
and we have to find ways to evolve and provide value. Our capabilities in
technology and products continue to grow. If our home office staff is not familiar
with a topic or issue, they will quickly follow up with a resource or an answer.
Stifel does truly believe in being client focused. Our clients are not surprised
by nuisance fees at every turn. Our compensation is fair and not tied to the
objectives of the firm, but the objectives of the clients.
Holly M. Baroway, CFP®, MBA
SENIOR VICE PRESIDENT/INVESTMENTS | DENVER, COLORADO
FINANCIAL ADVISOR COMPENSATION PLAN
TOP-TIER COMPENSATION
One Simple Grid
Stifel’s Compensation Program is one that is easy to understand, with two main components:
Commissions and Tax-Advantaged Deferred Compensation.
Monthly Commissions – At Stifel, we believe in always putting the interest of our clients first.
Therefore, we have opted to use just one grid system, with no product differentiation. This alleviates
the pressure some Financial Advisors may feel to sell certain products and ensures that you are able
to provide your clients with only the products and services you honestly feel will work to their benefit.
MONTHLY GROSS PRODUCTION COMMISSION GRID1
First $12,000 of Monthly Gross 25.0%
All Gross Above $12,000 50.0%
$600,000 Producer Commission
$1 Million Producer Commission
Based on peers in the 2018 On Wall Street Compensation Survey of firm-reported compensation, assuming an average $600,000
and $1,000,000 production, respectively. Firms with Investment Banking services included.
1
The grid specifies the maximum payout. Please speak with the recruiting manager or refer to the Compensation Notice found in
Stifel Resources on Stifel Portal under PCG for a description of how the firm calculates your earnings.
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STIFEL WEALTH ACCUMULATION PLAN
The Stifel Wealth Accumulation Plan (SWAP)
In addition to your monthly commissions, youʼll have the opportunity to participate in a unique
deferred compensation plan that allows you to build wealth, tax-deferred.
This plan is referred to as the Stifel Wealth Accumulation Plan or SWAP. There are two parts to this
program: Non-elective, production-based deferrals and elective deferrals.
Non-Elective, Production-Based Deferred Compensation – With SWAP, once your gross production
reaches the $300,000 threshold, you will automatically begin receiving 5% towards your non-elective,
production-based deferred compensation award, based on all annual gross.
Non-elective, production-based deferred compensation and the company match are subject to a
seven-year vesting period.
MONTHLY DEFERRED PAYOUT AND CAP
Begin Earning Monthly Deferred When YTD Gross Reaches $300,000
Percentage Payout Into Deferred Account 5.0%
Non-Elective, Production-Based Deferred Compensation Example
January February March April May June July
Monthly Gross $75,000 $50,000 $50,000 $75,000 $50,000 $50,000 $85,000
YTD Gross $75,000 $125,000 $175,000 $250,000 $300,000 $350,000 $435,000
5% Deferred – – – – $15,000 $2,500 $4,250
YTD Deferred – – – – $15,000 $17,500 $21,750
Non-Elective, Production-Based Deferred Investment Options
C-3 | Choose
FINANCIAL ADVISOR COMPENSATION
Stifel PLAN
DEFERRED COMPENSATION
Investing Your Production-Based Deferred Compensation – With your deferred compensation,
50% of the award will be in Stifel stock, and the other 50% will be in a cash alternative fixed-rate
investment. Below is an example with $20,000 in deferred compensation.
Deferred Stifel Stock Fixed Income Fund
Compensation $ % $ %
$20,000 $10,000 50% $10,000 50%
COMPENSATION SUMMARY
On Stifelʼs grid system, your monthly gross production determines your respective monthly compensation.
The higher the gross revenue, the higher your potential payout – as you can see in the chart below.
Annual Commission Deferred Total
Gross $ % $ %
$2,000,000 $964,000 48.20% $100,000 5.00% $1,064,000 53.20%
$1,500,000 $714,000 47.60% $75,000 5.00% $789,000 52.60%
$1,250,000 $589,000 47.12% $62,500 5.00% $651,500 52.12%
$1,000,000 $464,000 46.40% $50,000 5.00% $514,000 51.40%
$750,000 $339,000 45.20% $37,500 5.00% $376,500 50.20%
$600,000 $264,000 44.00% $30,000 5.00% $294,000 49.00%
$500,000 $214,000 42.80% $25,000 5.00% $239,000 47.80%
$400,000 $164,000 41.00% $20,000 5.00% $184,000 46.00%
$300,000 $114,000 38.00% $15,000 5.00% $129,000 43.00%
Notes:
(1) Commission is based on Standard 25/50% formula, whereby the first $12,000 of the month is set at 25% and
the balance is set at 50%.
(2) Deferred Compensation is 5.0% of annual gross provided that gross is $300,000 or more.
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FINANCIAL ADVISOR BENEFITS PACKAGE
As a Stifel Financial Advisor, not only will you enjoy
one of the industryʼs most rewarding compensation
programs, you will also be eligible to participate in the
firmʼs employee benefit program. Following are some
highlights of the plan.
Benefits Package
We offer our Financial Advisors a comprehensive,
cafeteria style plan, which provides the flexibility to
design a benefits program to meet your individual
MEDICAL needs. The plan allows for the costs of certain benefits
INSURANCE to be purchased on a pre-tax basis, thus reducing your
federal and Social Security taxes.
LONG-TERM Following is a list of the various types of plans from
CARE which all full-time associates (working 30 or more hours
per week) can design a benefits package that meets
their specific needs.
• Medical Insurance, including a concierge program
to assist in navigating through your benefits
HEALTH • Dental Insurance
• Vision Insurance
SAVINGS • Associate Life Insurance, providing a $1.5 million
account guarantee issue (effective July 1, 2019)
DEPENDENT CARE
• Dependent Life Insurance
FLEXIBLE • Accidental Death & Dismemberment (AD&D)
SPENDING • Short-Term Disability
account
• Long-Term Disability
• Personal Accident & Critical Illness
• Health Savings Accounts (HSA)
• Health Care Flexible Spending Account
WELLNESS • Limited Purpose Health Care Flexible
PROGRAMS Spending Account
• Dependent Care Flexible Spending Account
IDENTITY THEFT • Commuter Flexible Spending Account
PROTECTION • Business Travel Accident Insurance
• Hyatt Legal
• MetLife Auto and Home Insurance
• Group Personal Excess Liability Insurance
• Retirement Plan
• Long-Term Care Insurance
• Identity Theft Protection
• Student Loan Refinancing
Additional details and information on the above
programs will be provided to you from our Human
Resources Department upon joining Stifel.
FINANCIAL ADVISOR COMPENSATION PLAN
Profit Sharing 401(k) Plan – You may defer up to Financial Advisor Referral Program – Stifel will pay a
100% of your earnings as pre-tax, Roth, and/or after- bonus to associates who refer a Financial Advisor to
tax 401(k) contributions in selected mutual funds the firm. Bonus details will be made available upon
or Stifel Financial Corp. Stock up to the IRS annual joining the firm.
maximum for all three sources (for 2019, $56,000,
or $62,000 if you are age 50 or older). After-tax Education Assistance Program – Stifel is committed
contributions allow you to save more beyond the to the continuing development of our associates.
annual limits for pre-tax and Roth contributions. Our Tuition and Certification Assistance Program is
Earnings on after-tax contributions will continue to be designed to encourage associates to participate in
taxable until you complete an In-Plan Roth rollover. educational programs that promote career growth
Stifel will match 100% up to 6% with a cap of $1,000 and provide an increased contribution to the success
for all commission-paid associates, and we may make of our organization. All full-time associates working
additional discretionary contributions based on firm 30 or more hours per week are eligible the first day
profits. There is a three-year cliff vesting period on of the month following date of hire. Eligible courses
company contributions to the 401(k) period. Please include individual or one-time only courses and
note, for non-commission associates earning less degree programs that are job-related. All courses
than $175,000, Stifel will match 100% up to 6% with must be taken at an accredited college or university.
a cap of $3,000.
Stifel Financial Advisor Business Expense Account
Additional Benefits The Stifel Financial Advisor Expense Account offers
Purchase of Stifel Financial Corp. Stock – Additional qualified Financial Advisors a more financially
shares of Stifel Financial Corp. stock may be sound way to manage business expenses. You get
purchased without paying commissions. (Your normal all the convenience of a Visa credit card with the
employee discount can be taken on any sale of Stifel purchasing flexibility of an annual spending limit
Financial Corp. stock.) that you determine. In addition, your Stifel Business
Expense Account can save you money by providing
Employee Self-Directed IRA – You may open one significant tax benefits. Your annual expense
Traditional IRA and one Roth IRA without incurring allowance is offset with an equal, pre-tax reduction in
the annual IRA fee. In addition, your spouse may also your compensation. The reduction in your tax burden
obtain one Traditional IRA and one Roth IRA, free of means you have the opportunity to put more money
the annual IRA fee. into building your business.
Work Life Solutions Program – As a Stifel associate,
you and your family will have access to the Stifel
Work Life Solutions Program. This program offers brief
counseling or information regarding personal matters
at no cost to you. You and your family have access to
work/life educational information on a wide range of
childcare, elder care, and everyday issues. All records
and information of the program are confidential and
are governed by state and federal laws concerning YO UR NA ME HE RE
medical records. No personal information is disclosed
to your employer or anyone else unless the employee
gives written consent. Financial Advisors with a trailing-twelve-month
production of $300,000 or more are eligible to enroll
Stifel Referral Program – Stifel will pay a $250 bonus in the program. Qualifying Financial Advisors, with
for all non-commission positions. This bonus is approval from their branch manager, can determine
payable to the referring associate (if still employed) a fixed annual expense allowance from a minimum of
following the successful completion of 90 calendar $600 up to $30,000.*
days by the applicant and provided all requirements
of the program have been met. *Chairmanʼs Council production level required for max
amount.
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DISCOUNT SHARING POLICY
Policy for Stocks Priced Less Than or Equal to $5.00 and All Options
Standard Policy
TRADE PRICING PAYOUT/SHARING
CHARACTERISTICS
≤ 20% Discount Full Commission
Equity Orders
on Stocks Priced
at $5.00 or Less Commission
and All Options Reduced
> 20% but by 1/2 the
Equity Orders ≤ 80% Discount
in Which the Above 20%
Final Commission
is < $200
> 80% Discount No Commission
Cents Per Share Policy
TRADE PRICING PAYOUT/SHARING
CHARACTERISTICS
Equity Orders ≥ $0.07 Per Share Full Commission
in Which the
Final Commission ≥ $0.04 but < $0.07 15 Point Reduction
Is ≥ $200
< $0.04 Per Share No Payout
Equity Orders
in Which the
Final Commission 30% Flat Commission
Is ≥ $1,000
With ≥ $0.03
Per Share
FINANCIAL ADVISOR COMPENSATION PLAN
RETIREMENT AND SUCCESSION PLANNING
Advisor Retirement Planning
Wouldnʼt you like to benefit from the years of quality service you provided clients when you retire?
Itʼs possible through Stifelʼs Business Transition Plan.
Let the client relationships youʼve built today work for you tomorrow. By transitioning your Core
Accounts to a successor within the firm per the Business Transition Plan, you will have the
opportunity to receive a percentage of commission compensation on such accounts for up to three
years after retirement. You are rewarded for the quality relationships that you have worked so hard
to develop.
Who is best qualified to determine your successor?
No one is better qualified than you.
You have placed a great deal of care and time into the financial well-being of your clients and are
familiar with their objectives and investment preferences. This Business Transition Plan allows you
to nominate a Financial Advisor to service your accounts once you retire.
Business Succession Planning
Business Succession Plan offers a mechanism to permit our Financial Advisors a smooth transition
of clients to an advisor of choice and payment to a beneficiary of choice in the event of the
advisorʼs untimely death.
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FINANCIAL ADVISOR COMPENSATION PLAN
RECOGNITION TRIPS
Chairman’s Council
2020 Four Seasons Resort Nevis, West Indies
2019 Four Seasons Resort Punta Mita, Mexico
2018 Four Seasons Resort Maui, Hawaii
2017 The Ritz-Carlton Grand Cayman
2016 Hilton Los Cabo Resort Cabo San Lucas, Mexico
2015 The Ritz-Carlton Aruba
2014 Four Seasons Resort Punta Mita, Mexico
2013 The Ritz-Carlton Grand Cayman
2012 Hyatt Regency Resort & Spa Maui, Hawaii
2011 The Ritz-Carlton Cancun, Mexico
2010 J.W. Marriott Guanacaste Tamarindo, Costa Rica
2009 The Atlantis Paradise Island, Bahamas
2008 Hilton Los Cabos San Jose del Cabo, Mexico
2007 Ritz-Carlton Montego Bay, Jamaica
2006 Hilton Los Cabos San Jose del Cabo, Mexico
2005 Fiesta Americana Cancun, Mexico
President’s Council
2020 The Broadmoor Colorado Springs, Colorado
2019 The Breakers Palm Beach, Florida
2018 Fairmont Princess Scottsdale, Arizona
2017 The Resort at Pelican Hill Newport Beach, California
2016 Wynn Las Vegas, Nevada
2015 Four Seasons Hotel Orlando, Florida
2014 The Broadmoor Colorado Springs, Colorado
2013 The Ritz-Carlton Laguna Niguel
2012 Four Seasons Hotel Chicago, Illinois
2011 The Ritz-Carlton San Francisco, California
2010 The Fontainebleau Miami Beach, Florida
2009 The Phoenician Scottsdale, Arizona
2008 Renaissance Waterfront Boston, Massachusetts
2007 The Fairmont Washington D.C.
2006 Charleston Place Charleston, South Carolina
2005 Silverado Napa, California
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501 NORTH BROADWAY | ST. LOUIS, MISSOURI 63102
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