Ep 9: Equity Sharing and Compensation Issues for Running Practices

Episode 9: Equity Sharing and Compensation Issues for Running Practices

Guest: Carolyn Armitage

Welcome to Financial Advisors Want to Know with Catherine Tindall. In this episode, we dive into the complexities of equity sharing and compensation structures for advisory firms with Carolyn Armitage, an industry leader with deep experience as an advisor, consultant, and investment banker.

Key Takeaways:

✅ Plan Compensation Early – Don’t wait until turnover to address talent retention and compensation strategies.
✅ Culture Over Cash – The amount of compensation is easy; aligning business and employee goals is the real challenge.
✅ Equity Isn’t Always the Answer – Employees may want profit-sharing rather than ownership risks and responsibilities.
✅ Beware of Phantom Plans – These are often just disguised cash bonuses with negative tax implications and can demotivate top talent.
✅ Tiered Plans Work Best – Aligning admin and executive staff compensation to individual roles and goals is a more effective strategy.
✅ Compensation = Buy-In – The way you structure pay directly impacts employee engagement, loyalty, and the long-term success of your firm.

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