Merrill Lynch Introduces Revised Advisor Compensation Plan with Higher Payouts for Smaller Accounts.

Merrill Lynch has unveiled a new advisor compensation plan for 2026, with a focus on raising the bar for advisors to receive payment on smaller accounts. The changes are part of the company's ongoing efforts to revamp its compensation structure and incentivize advisors to grow their client base. The plan aims to promote a more client-centric approach and reward advisors for delivering value to their clients.

Merrill Lynch, a unit of Bank of America, has announced its 2026 compensation plan for financial advisors, with a notable focus on raising the bar for payment on smaller accounts. The new plan, unveiled to thousands of advisors on Thursday, maintains the core grid structure that determines pay based on annual revenue generation but introduces significant changes to the small household policy and certain bonuses Merrill Lynch Unveils New Advisor Compensation Plan. Here’s What’s Changing.^[1].

One of the key updates is a reduction in the payout for advisors handling client households with assets between $250,000 and $500,000. Under the new plan, advisors will receive 20% of the revenue from these accounts, down from zero under the current plan. This change will not apply to trainees and recent graduates. Additionally, the grace period for bringing a small household's assets above the threshold has been extended to six months from three months, making the transition easier for advisors Merrill Lynch Unveils New Advisor Compensation Plan. Here’s What’s Changing.^[1].

Merrill Lynch is also tweaking two of its bonuses. The banking growth award, which rewards advisors whose clients have Bank of America checking accounts, will now include an additional 0.10 to 0.25 percentage point payout based on positive flows of money into client accounts for the year. The majority of Merrill advisors have qualified for this award, which requires at least 55% of their client households to have a Bank of America checking account Merrill Lynch Unveils New Advisor Compensation Plan. Here’s What’s Changing.^[1].

The growth award, which pays advisors for bringing in new businesses and growing their practices, will see a reduced payout on flows for money-market funds and bank deposits. The payout will drop to 0.02 percentage point from 0.12 percentage point, reflecting the falling interest rates on these accounts. However, the core components of the growth award remain unchanged Merrill Lynch Unveils New Advisor Compensation Plan. Here’s What’s Changing.^[1].

These changes are part of Merrill Lynch's ongoing efforts to revamp its compensation structure and incentivize advisors to grow their client base. The new plan aims to promote a more client-centric approach and reward advisors for delivering value to their clients. By focusing on smaller accounts and adjusting bonuses, Merrill Lynch is hoping to attract and retain a diverse range of clients, thereby fostering long-term growth and success Merrill Lynch Unveils New Advisor Compensation Plan. Here’s What’s Changing.^[1].