Merrill Raises Advisor Bonus Requirements

Clients should know that advisor incentives are changing, which could shift the focus of your financial planning conversations.

Updated on Oct. 22, 2026 in Financial Planning

Isometric editorial illustration of a brass vault key on a mahogany surface, representing financial incentive structures. — Merrill is updating its financial advisor bonus requirements for 2027 to reward advisors for expanding new household acquisitions and banking loans. AI Illustration. Upload story photo >

Live Poll

Do you trust that incentive-based pay for financial advisors leads to better results for clients?

Merrill has unveiled updated bonus incentives for its financial advisors for 2027, focusing on higher asset and lending targets while maintaining current base pay structures. These changes arrive as the firm looks to capitalize on recent growth in client assets and new household acquisitions.

Why it matters

The firm is shifting its compensation rewards to prioritize the acquisition of new client households and the expansion of banking products like loans. By adjusting these performance-based thresholds, Merrill aims to ensure its advisory staff remains aligned with its broader growth strategy.

The minimum strategic asset requirement for the Growth Award is rising to $7.5 million from $5 million, while advisors must now secure four new household credits instead of three. Merrill reports that total client balances grew 9% year-over-year in the third quarter.

The players

Merrill

A wealth management division of Bank of America that provides advisory services and investment products to high-net-worth households.

Wells Fargo

A major financial services company that provides banking, investment, and mortgage products to consumers and is expected to announce upcoming compensation policies.

The details

Merrill is modifying its bonus structure to incentivize specific business growth, such as increasing the required new household credits and introducing a New Lending Growth Award. This award structure provides tiered payouts, including 10 basis points for hitting $10 million in loans and 20 basis points for $25 million in loans. While the performance-based award thresholds are tightening, the firm is keeping its fundamental advisor pay grid unchanged for 2027.

Merrill introduced growth awards in 2024.
The firm reported a 9% year-over-year increase in client balances in Q3 2026.
Merrill announced the new 2027 advisor compensation strategy in October 2026.
The updated bonus incentive policies take effect in 2027.

Money Landscape

These compensation shifts follow the 2024 introduction of Merrill advisor growth awards, marking a further push to drive banking-focused growth. This cycle reflects a broader trend among major wealth managers to aggressively tie advisor pay to the acquisition of new client households and loans.

Clients may notice their advisors placing an increased focus on gathering new assets and cross-selling banking products like loans to meet these revised firm-wide targets. If you are reviewing your financial plan, ask your advisor how their firm's incentive structure may influence the products or services they recommend.

The takeaway

Merrill is sharpening its focus on new household acquisition and loan growth through higher bonus hurdles for its advisory staff. Clients can track these shifts by reviewing the disclosures provided by their financial firm regarding advisor compensation and potential conflicts of interest.