Advisor recruiting deals are usually described in one line, such as "300% of T12." That shorthand hides the structure that decides what you'll actually receive. Here's how the pieces fit together.
How deals are sized: multiples of T12
Most packages for employee-model firms are quoted as a percentage or multiple of your trailing-twelve-month (T12) production, the gross revenue you generated over the past year. At the top of the market, headline packages for strong, fee-based books have been quoted at roughly two to four times T12 in recent years. Terms vary widely by firm, book quality and timing, so treat any rule of thumb with caution.
The typical components
| Component | How it usually works | What to check |
|---|---|---|
| Upfront forgivable loan | Paid at signing as a promissory note, forgiven in equal parts over a set term (often many years) | Term length, what's owed if you leave early, tax treatment |
| Back-end / deferred bonus | Paid later, often tied to tenure or asset and revenue growth | Payment dates and conditions |
| Contingent hurdles | Paid if you transfer a target level of assets or revenue within a window | How hurdles are measured and the time allowed |
| Payout grid | Your ongoing share of the revenue you produce | Grid thresholds, deductions, product-specific rates |
How independent and RIA deals differ
Independent broker-dealers and RIAs generally offer higher ongoing payouts, often far above employee-model grids, in exchange for you covering more of your own expenses. Transition assistance tends to be smaller and is often designed to offset moving costs, repapering and lost revenue during the transition rather than to serve as a large upfront check.
Compare two real offers with our free offer comparison tool, then check take-home pay with the payout tool.
Don't forget what you leave behind
Unvested deferred compensation, outstanding notes from your current firm and missed bonuses all reduce the real value of a new offer. Some hiring firms will partly make up for these, so raise it early.
Next step
Have an attorney review any promissory note and employment agreement before you sign. A recruiter can help you benchmark the business terms. That's what we do every day.