Changing market demographics are reshaping competition for talent and growth

Leading wealth firms are using technology to make compensation more strategic, transparent, and scalable

Wealth firms are facing a growing talent challenge. New advisor entry has declined in recent years, and some projections suggest that up to half of today’s advisors may exit the industry within the next five years¹. At the same time, heightened market uncertainty, digital advisory alternatives, and a massive generational wealth transfer are increasing pressure on firms to differentiate with advisors and their clients.

Why compensation strategy matters more than ever

A well-designed compensation strategy can help firms attract advisors, retain top performers and support growth. Top advisors tend to favor firms where compensation reflects their strengths, client relationships and priorities for growth.

For existing advisors, incentives should reinforce the behaviors that matter most to the firm, whether that means deeper planning relationships, use of key technologies or focus on specific products and services. Just as important, compensation should be clear and easy to understand. Transparency builds trust, while simpler administration helps advisors spend more time with clients and less time resolving payout questions.

Several industry shifts are reshaping compensation planning for firms

Retirement / succession planning

Many advisors are approaching retirement and beginning to transition their books to the next generation. Compensation can help firms retain assets during that transition while supporting continuity for clients and flexibility for advisors. This may require revised team structures, split arrangements, or continued compensation during phased retirement, all supported by a flexible, easy-to-manage solution.

Team specialization

Competition for clients and assets continues to intensify, driven by the great wealth transfer, the rise of digital alternatives, and ever-expanding service by competitors. Many leading firms are responding with team-based service models. These structures can expand the range of expertise available to clients while also improving retention and organizational flexibility. Compensation should support collaboration across teams and adapt to changes such as advisor turnover and the growth of new investment products and services.

Advisory services

Firms increasingly recognize that advisory services deepen relationships and create new opportunities for growth. As service models expand, firms need compensation structures that reflect the full client relationship while still supporting distinct fees and incentives across services and products.

Why technology matters in compensation processing

The challenge is not just designing the right compensation strategy. Firms also need systems that can support that strategy as business needs evolve. The opportunity is to pair strategy with technology that makes compensation easier to manage, adapt and scale.

What firms should look for in a modern
compensation platform

Modern compensation solutions help firms manage sophisticated plans without
creating more operational complexity. They improve visibility, control and
efficiency at the same time.

Strengthen oversight and reduce administrative burden with integrated data, scalable processing, and stronger controls across payouts, exception handling, and reconciliation. Seamless integration with custodians, clearing partners, and third-party systems, combined with built-in validations, can improve accuracy and reduce manual work.

Improve data management and reporting across the home office and field with clearer visibility into payouts, performance, and exceptions. Better reporting can help firms streamline issue resolution, reinforce best practices, and support more consistent execution.

Support more flexible compensation strategies with plan structures designed to reflect changing business priorities. For example, firms may want team-oriented incentives to encourage collaboration, product-focused programs aligned to areas of demand, or tiered structures that reward exceptional client service and goal attainment.

Increase advisor productivity through greater transparency, easier access to compensation data, and faster issue resolution. Intuitive dashboards and flexible hierarchy rules can also support succession planning and team-based models.

Turn compensation data into insight with analytics that help identify retention risks, benchmark performance, and uncover growth opportunities across the field.

Leading compensation management solutions increase agility without adding operational workload. They enable firms to support more complex models while maintaining visibility, control and efficiency.

Broadridge Advisor Compensation Solutions

Broadridge Advisor Compensation Solutions help firms manage complex compensation plans with enhanced visibility, reduced manual effort and greater flexibility over time. Our solutions help your future-proof your compensation operations through a modern SaaS solution that improves control, increases operational efficiency, and enhances your ability to attract advisors with the transparency and insight they value most. Across all use cases and firm sizes, our solution delivers capabilities no other provider can match.

Get the solutions you need

Broadridge helps drive advisor efficiency, productivity, and engagement. Discover how your firm can transform its processes to attract and retain top talent for a more profitable, effective business. Contact your Broadridge representative today or visit us online.

¹Celent Solution Brief: Broadridge Advisor Onboarding Solution, 2025.

About Broadridge

With a robust infrastructure that processes over 7 billion communications annually and supports the daily trading of more than $10 trillion in securities worldwide, Broadridge is well positioned to meet the evolving needs of wealth management firms. The company, recognized as a certified Great Place to Work^® and a member of the S&P 500^® Index, employs over 14,000 associates across 21 countries, underscoring its commitment to excellence and growth.

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