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FIRST LOOK

FPINSIGHTS® 2025 COMPENSATION STUDY RESULTS

This early release of FP Transitions’ 2025 Compensation Insights Study results reveals how pay structures, ownership, and role progression shape financial outcomes across the wealth management profession. Based on data from 2,740 professionals, these findings are essential for members of our Equity Management Solutions® program who want to retain talent, build enterprise value, and drive equity-driven growth.


BENEFITS PACKAGES SCALE WITH GROWING FIRMS

 

Benefits vs. Firm Size

Benefits vs Firm Size WIDE

Larger Businesses Offer Stronger Benefit Packages Across the Board

Benefits scale dramatically as firms increase in size. At the largest firms, 93% offer health insurance compared to only 39% of the smallest. Retirement plans are nearly universal, while coverage such as dental and vision provide mid-sized firms with meaningful ways to differentiate themselves in the marketplace.

What This Means:
For individuals, total compensation extends beyond salary and bonuses to include benefits value. For firms, comprehensive packages are now table stakes for attracting and retaining talent, especially as competitors expand their coverage.


JOB FUNCTION DETERMINES EARNING POTENTIAL

 

Top Paying Roles in Financial Services

Average Comp WIDE

Compensation Ceilings Are Tied Directly to Professional Role

Income levels vary sharply by function. Executives earn an average of $390,788, advisors average $232,878, and client service professionals average $83,182. The highest individual roles are Executive Officer, President, and Practicing Partner, each exceeding half a million dollars in average annual compensation and establishing clear earning ceilings based on position.

What This Means:
For individuals, career progression into advisory or executive roles maximizes long-term income. For firms, creating visible advancement pathways keeps ambitious professionals engaged and reduces the risk of turnover to competitors.


OWNERSHIP IS THE ULTIMATE COMPENSATION ADVANTAGE

 

Executive vs. Advisory Ownership Track

Advisory vs Executive Ownership WIDE

Owners Earn Nearly Four Times the Compensation of Non-Owners

Business owners average $522,474 in total compensation compared to $106,620 for non-owners, representing the largest income differentiator in the industry. Ownership grows along two distinct career tracks. Executives typically build equity gradually, while advisors often leap from partial ownership to nearly full participation at the partner level.

What This Means:
For individuals, choosing a track early—executive or advisory—defines ownership opportunities. For firms, well-structured equity participation plans align professional incentives with organizational growth and create enduring loyalty among high performers.


MID-CAREER IS A PIVOTAL PERIOD

 

Compensation Growth by Career Stage

Average Comp

Compensation Nearly Doubles During Years 16-25

Earnings rise significantly during mid-career. Average compensation increases from $175,588 for those with eight to fifteen years of experience to $332,263 for those with sixteen to twenty-five. This period often marks advancement into senior leadership and ownership positions, driving lasting compensation growth.

What This Means:
For individuals, the most strategic career moves occur between years twelve and twenty. For firms, advancement opportunities for mid-career professionals are critical to retention and essential to sustaining leadership pipelines.