Equity-Based Compensation Valuation, Investment Management

February 2, 2023

WHITEPAPER | Compensation Structures for Investment Management Firms

Compensation models are the subject of a significant amount of hand-wringing for RIA principals, and for good reason. Out of all the decisions RIA principals need to make, compensation programs often have the single biggest impact on an RIA's P&L and the financial lives of its employees and shareholders.

There are three basic components of compensation for investment management firms: Base salary/Benefits, Variable Compensation/Bonus, and Equity Compensation. We discuss these and more in this whitepaper.

Download
Download Whitepaper
Authors
Matthew R. Crow
CEO
Learn More
Brooks K. Hamner
Senior Vice President
Learn More
Zachary W. Milam
Vice President
Learn More

Continue Reading

Outside Capital, Inside Ownership: Can an RIA Accomplish Both?
Outside Capital, Inside Ownership: Can an RIA Accomplish Both?
Outside capital can support an RIA’s growth and internal succession, but employee ownership requires careful attention to affordability, equity rights, governance, and liquidity. A successful partnership addresses both the current transaction and a practical path for future owners.
RIA Valuation Insights Blog Investment Management
Read Now
The Cost of Staying Independent
The Cost of Staying Independent

Sometimes Doing Nothing Is the Riskiest Choice

Remaining independent requires RIA owners to invest in future leaders, fund an ownership transition, and share authority. Delaying those commitments can increase risks for founders, employees, and clients, even when the business continues to perform well.
RIA Valuation Insights Blog Investment Management
Read Now
Skeletons in the Data Room: What Can Haunt an RIA Sale
Skeletons in the Data Room: What Can Haunt an RIA Sale
Client concentration, an aging client base, weak organic growth, founder dependence, and questionable earnings adjustments can complicate an RIA sale. Identifying and addressing these issues before due diligence helps owners protect transaction value and negotiate from a stronger position.
RIA Valuation Insights Blog Investment Management
Read Now

Cart

Your cart is empty