The Basic Broker Payout Grid Template

The Basic Broker Payout Grid TemplateThe Basic Broker Payout Grid TemplateAlthough securities brokerage and wealth management firms have long since shunned the term broker in favor of financial advisor or something similar for their sales force, the phrase broker payout grid has persisted in common usage. In short, what is called the grid is the essential driver of financial advisor pay, especially in the traditional scenario of pay by commissions. The Complexity of Payment Pay can be a very complex calculation, with a variety of factors contributing to the final amount. Among the most common variables included with the typical compensation plan are Total production credits (PCs) or commissions earnedTypes of products soldAsset gathering Wall Street firms traditionally have treated their payout grids as business secrets. How the Broker Payout Grid Works The financial advisor payout grid at the typical brokerage firm offers a ersatzdarsteller incentive to earn more production credits (PCs) or commissions. Not only does earning more production credits translate into higher financial advisor pay, but also at a higher overall payout rate. Here is a highly simplified example, arranged by production credit breakpoints Less than 100,000 PCs 20% payoutAt least 100,000 and under 250,000 PCs 25% payoutAt least 250,000 and under 500,000 PCs 30% payoutAt least 500,000 and under 1,000,000 PCs 35% payout1,000,000 PCs and up 40% payout Now, to apply this sample payout grid to a few different levels of production At 300,000 PCs, pay $90,000.00 (300,000 x .30)At 499,999 PCs, pay $149,999.70 (499,999 x .30)At 500,000 PCs, pay $175,000.00 (500,000 x .35) That last example illustrates the key feature of the payout grid, as it traditionally has been applied on Wall Street. By moving the financial advisor to the next level of the grid, one additional production credit (PC) led to a staggering $25,000.30 in additional pay. Herein lies a particularly powerful example of tha t double incentive to increase production alluded to above. Commissions on the Types of Products Sold Some firms have extensive exceptions to the grid, with sales of certain types of products given special payout rates. For example, a firm may give special incentives to sell in-house mutual funds, equity new issues that it underwrites, or securities of which it has excess inventory that it is eager to reduce for risk management purposes. These exceptions and bonuses can be permanent or temporary. Temporary sales bonuses traditionally have been referred to as flavor of the month promotions. The concept of offering special sales incentives for certain products, especially in-house products, has come under increasing fire since they can put the financial advisors interests at odds with those of his or her clients. As a result, some firms have done away with such special incentives, and tout their open architecture approach that leaves the financial advisor undistracted in seeking t he best investment vehicles for the client. Calls for securities firms and financial advisors to be subject to the more stringent fiduciary standard, as opposed to the looser suitability standardthat traditionally has bound them, often have cited practices such as flavor of the month promotions as evidence that extreme reforms are necessary. Bonuses for Asset Gathering Even when financial advisor pay is driven by transactions and production credits or commissions, rather than by an asset-based fee, most firms nonetheless supplement the payout grid with incentive pay for asset gathering. The strategic imperative is to have as much of a clients total financial assets as possible on deposit with the firm, whereby the firm is bound to maximize the revenues that it can earn from that client. See our discussion of the return on client assets or revenue velocity. Asset gathering awards typically are based on the net increase from year to year in the total assets in a financial advisors client accounts. Some firms may adjust the asset gathering figure to reflect just the net deposits of new funds and securities to client accounts, removing the impact of fluctuations in value.

Will cannabis be 100% legalized Yes, for 3 obvious reasons

Will cannabis be 100% legalized Yes, for 3 obvious reasonsWill cannabis be 100% legalized Yes, for 3 obvious reasonsIts only a matter of time before cannabis is fully legalized.Honestly, its unfortunate that it has taken this long?- ?and even more unfortunate how many people have been put through the ringer for buying, selling, or using cannabis in the past however-many years. Ill never forget the first time I saw a billboard for legal cannabis in Los Angeles, and my first thought welches how many people have been put in jail for something that is now quickly becoming the next hot product.Follow Ladders on FlipboardFollow Ladders magazines on Flipboard covering Happiness, Productivity, Job Satisfaction, Neuroscience, and moreHowever, there are a few reasons why its no longer an if conversation, but a when conversation.1. Funding cannabis companies has already crossed the tippingpointAlready in 2019,cannabis companies have raised more than $3.3 billion in venture funding?- ?outpacing what was raised in 2018.When you have this level of venture funding pouring into an emerging industry, thats a very big signal of approval. That means its more than just a few forward-thinking angel investors betting on a dystopian future. Now there are VC firms, PE firms, and major retailers all backing the future of cannabis.According to Fortune, for example, Walgreens is set to sell cannabis products in more than 1,500 stores.These are all signs of where the world is headed.2. The digital age has made the distribution for cannabis products exponentially easierCompanies like Eaze, here in California, have realized the massive opportunity for cannabis delivery?- ?and use a similar model as some of todays hottest delivery startups like Postmates or UberEats,offering $20 off your first order.However, in order to understandhow a company like Eaze is able to raise $60M+ at a $300M+ valuation, its important to look at why delivery in this space is such a crucial part of mainstream adopt ion.First of all, our society has always measured progress largely by convenience. The simple progression of wanting what you want, when you want it, has dictated the direction of some of the most influential companies of the past few decades?- ?with todays most obvious (and successful) example being Amazon. Applying this same logic to cannabis adoption is a no-brainer.But second, and potentially more importantly (at least for the time being, while cannabis slowly works its way through the red tape of the legal system), cannabis delivery is a way of scaling without requiring each and every customer to go out and purchase cannabis in-person. A big argument in cannabis adoption has always been driving under the influence, no different than alcohol, and so companies like Eaze are racing to be the solution that doesnt require a customer to leave his or her home (or office, or friends apartment, etc.).3.The world has become more and more open-mindedThe way the world thinks and communicat es today about some of societys most longest standing issues is very, very different than how things were a decade, or even two decades ago.Never before in history have we talked so openly about topics like same-sex marriage, mental health, race, womens rights, white male bias, substance abuse, child molestation, etc. And although it might seem odd to put cannabis beside those sorts of topics, you have to remember how long cannabis was deemed just as dangerous as heroin or opiates. The mental shift that cannabis is actually a fairly harmless, and even medically proven to help bring relief to certain types of patients, is a recent one. 10 years ago, it was a very small group of people who believed or even talked about cannabis being legalized for medical use?- ?no different, you could say, as the people who decided to buy Bitcoin when it was a mere $4.72.The question is no longer, Do you agree with the legalization of cannabis?Its only a matter of time before it is 100% legalized, al l across the United States (and most likely, other big parts of the world).This article originally appeared on Minutes.You might also enjoyNew neuroscience reveals 4 rituals that will make you happyStrangers know your social class in the first seven words you say, study finds10 lessons from Benjamin Franklins daily schedule that will double your productivityThe worst mistakes you can make in an interview, according to 12 CEOs10 habits of mentally strong people

What to Know About the Aviation Safety Action Program

What to Know About the Aviation Safety Action ProgramWhat to Know About the Aviation Safety Action ProgramThe Aviation Safety Action Program (ASAP) is a voluntary reporting program in which airlines and other Part 121 operators team up with the FAA to enhance flight safety. The goal of ASAP is to detect problems and safety hazards in flight operations before those problems cause an accident. Anonymous Reporting In the ASAP program, airline employees can submit anonymous, voluntary reports without fear of being reprimanded by their employer, and without fear of being legally implicated by the FAA through their report. Reports remain anonymous and can be paired with data from flight recorders to analyze the entire scope of the situation.? For example, if a pilot witnesses or flies an unstable approach, he can submit an ASAP report. The report will include information about the event which could be valuable to the flight operations department. If there are many unstable approaches r eported into a single airfield, for example, the airline can issue guidance or warnings to its pilots, change their policies regarding approaches into that airport to reduce the risk of error for future pilots, and inform the FAA or any unsafe operational hazards in that particular airspace. Years ago, before ASAP programs came along, pilots were reluctant to share information like this for fear of being disciplined or penalized for their actions. With many pilots and institutions on board with the ASAP program, safety reports have become mora common, giving the FAA and air carrier operations data needed to assess risk and prevent accidents. With data from onboard flight recorders, air carriers can also analyze actual aircraft data to monitor trends, flap or gear over-speed events, overweight events, etc. This program, called FOQA (flight operational quality assurance) at some airlines, complements the ASAP program. It gives the airline another method of finding and fixing problems before they occur, and, more importantly, before an accident occurs. How It Works First, safety data collection methods and program details are agreed upon by the FAA and the carrier involved. An MOU is created to define the scope of the program between each party.Employees and company personnel are trained in how to use the system best to ensure privacy, anonymity, and safety.An event review committee (ERC) is formed, which consists of at least one member from each party (the carrier, the FAA and potentially a pilot union, etc.)An ASAP manager (not on the ERC team) will review reports, enter data to be analyzed, and send appropriate reports to the ERC. The ERC will review reports, determine if there are problems or potential problems, and make recommendations. Which Reports Are Not Accepted Not all ASAP reports are protected from punitive action. Employees that show an intentional disregard for safety, purposefully and knowingly cause problems, or are involved in criminal a ctivity will be dismissed from the ASAP program. If necessary, the FAA will follow up with an independent investigation and legal action where appropriate. Participants That ASAP program initially had its share of troubles, with airlines backing out, citing trust issues between the companies and its pilots. Still, at least 95 air carriers were involved in the ASAP program. Many of those airlines have also extended their ASAP programs to maintenance personnel, dispatchers, and flight attendants.