At a glance
- Another 29% do not have one but are interested, and 12% have no interest.
- Deferred compensation arrangements made up 6% and other structures 8%.
- Sixty percent of firms said eligibility is decided by management discretion, according to Advisor Growth Strategies.
Fifty-nine percent of RIAs offer a long-term incentive plan on top of salary and annual incentives, according to Advisor Growth Strategies' 2026 Compensation Trends Survey. Another 29% do not have one but are interested, and 12% have no interest.
Phantom equity is the most common structure, at 25% of firms, followed by profits interests at 20%. Deferred compensation arrangements made up 6% and other structures 8%.
Sixty percent of firms said eligibility is decided by management discretion, according to Advisor Growth Strategies. Tenure and experience were cited by 24%, and revenue or business development by 22%, with multiple answers allowed. Thirty-four percent of respondents have no LTIP or no eligibility criteria.
Advisors weighing a move to a growing firm have little advance indication of what earns a stake. Advisor Growth Strategies said when partners retire or sell, the next leadership group inherits a plan without a rulebook.
Discretion decides who gets an equity stake
Share of RIA firms citing each eligibility criterion; multiple answers allowed
- Management decision or discretion60%
- Tenure and experience24%
- Revenue or business development22%
Show as table
| Item | Value (%) |
|---|---|
| Management decision or discretion | 60% |
| Tenure and experience | 24% |
| Revenue or business development | 22% |
Reported by the Practice management desk from Advisor Growth Strategies. Published . Corrections