Goldman Sachs Updates Wealth Advisor Retirement Structure; Remains Woefully Short Of Rivals

Let’s get right to the point here… Goldman Sachs wildly under compensates its wealth advisors in ways that we still can’t understand. Even faced with defections and ‘in your face’ data that proves the firm is significantly behind versus the likes of Morgan Stanley and UBS, management still doesn’t believe it matters.

Case in point, the production-based changes Goldman Sachs recently announced to retirement packages for wealth advisors. Goldman announced a 3x payout to annualized W2 comp. in other words, if an advisor makes $1.5M in 2021 and chooses to retire, he’d received $4.5M in tiered payments over a few years.

Rival warehouses have programs that range from 180% – 260% of annualized production, not W2 income.

Using round numbers as an example. If an advisor produces $5M annually his retirement package payout would equal $13M bucks. More than 300% more than Goldman’s recently updated retirement package. Goldman Sachs wildly under compensates its wealth advisors. The raw numbers tell the story.