How We Compensate Our Investment Professionals

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1[View this notice in PDF format](https://www.schwab.com/resource/how-we-compensate-our-investment-professionals)
2
3Since Charles Schwab & Co., Inc. ("Schwab") was founded more than 40 years ago, we've been committed to serving the needs of individual investors. One of our most important beliefs is that you should understand how the financial professionals assisting you are paid, so you can evaluate the recommendations you receive.
4
5In these pages, we identify the different categories of investment professionals who may serve you at Schwab and describe how they are compensated. This includes both Schwab employees and independent branch franchisees (and their employees) operating Schwab Independent Branches. Compensation for investment professionals who provide recommendations is designed to support the provision of advice in the client's best interest.
6
7Certain representatives that drive net new assets to the firm during the year may also be eligible to earn an annual trip through Schwab Chairman's Club.
8
9Please note that the information below describes how Schwab pays employee professionals and shares revenue with Independent Branch professionals, not how you pay Schwab for the services you receive. Information about what you pay Schwab for the services we provide can be found at [schwab.com/pricing](https://schwab.com/pricing).
10
11These pages summarize our compensation plans and incorporate all recent changes in effect as of April 1, 2026.
12
13These pages are accurate as of the date indicated above. The most recent information is available at [schwab.com/compensationdisclosure](https://schwab.com/compensationdisclosure).
14
15We invite you to read this information carefully and to contact us at [800-435-4000](tel:+18004354000) if you have any questions. (For multilingual services, call [800-662-6068](tel:+18006626068). For services outside the U.S., call [+1-415-667-8400](tel:+14156678400).)
16
17## Types of Investment Professionals
18
19### 1\. U.S. Branch Representatives
20
21- VP-Financial Consultants
22- Investment Consultants
23- Client Relationship Specialists
24- Financial Consultant Partners
25- VP-Assistant Branch Managers
26- VP-Branch Managers
27
28### 2\. International Branch Representatives
29
30- International VP-Financial Consultants
31- International Assistant Branch Managers
32- International Branch Managers
33
34### 3\. Service Representatives
35
36- Customer Service and Brokerage Service Representatives
37
38### 4\. Specialty Representatives
39
40- New Client Investment Consultant
41- Investor Development Consultants
42- Financial Consultants (Financial Solutions Branch)
43- Branch Managers (Financial Solutions Branch)
44- VP-Senior Wealth Consultants/Director, Senior Wealth Consultants
45- Wealth Consultant Partners
46- Director-Schwab Private Wealth Services
47- VP-Senior Client Consultants
48- VP-Workplace Financial Consultants/Workplace Advice Consultants
49- Branch Managers (Workplace Branch)
50- Trader Sales Representatives
51- Fixed Income Specialists
52- Regional Annuity Specialists (Annuity Specialists)
53- Regional Banking Managers
54- Portfolio Solutions Group Investment Consultants
55- Financial Planning Specialists
56- Alternative Investment Consultants
57
58### 5\. Schwab Independent Branch Services Representatives
59
60- Independent Branch Leaders
61- IB Representatives
62
63### 6\. Schwab Wealth Advisory, Inc.
64
65- Director, Wealth & Asset Management Solutions
66- Tax, Trust & Estate Specialists
67- Equity Compensations Specialists
68- Portfolio Transition Specialists
69
70## 1\. U.S. Branch Representatives
71
72### VP-Financial Consultants
73
74#### What They Do
75
76VP-Financial Consultants work with clients both in person (through our U.S. branch office locations) and by phone. They develop new and existing client relationships, generally using a planning-based approach to understand a client's needs and objectives. They provide education and recommendations to help clients select products-including investments, banking, and insurance-that meet client objectives. Each Financial Consultant supports a practice, which includes clients who are assigned to that Financial Consultant as a primary point of contact. Financial Consultants may also assist clients who are not in their practice.
77
78#### Compensation
79
80Financial Consultants receive a base salary for serving clients. Depending on their professional experience and past work performance, some Financial Consultants also receive Relationship Pay. In addition, Financial Consultants receive Solutions Pay. Financial Consultants may also be eligible to participate in a Career Achievement Award Program, which rewards and retains our top talent for being dedicated to Schwab and our clients.
81
82Financial Consultants may give financial planning and investment advice to some of their clients. Although Schwab as a company may earn more or less revenue depending on the investment product or portfolio management service a Financial Consultant recommends, we have designed their compensation based on the time, complexity, and expertise necessary to understand, recommend, and provide ongoing service to a client for different categories of investment products and portfolio management services. [Schwab.com/schwabcompensation](https://schwab.com/schwabcompensation) includes more information on how Schwab as a company earns revenue.
83
84#### Relationship Pay
85
86Relationship Pay compensates a Financial Consultant for maintaining relationships with and providing service to clients in their practice. Compensation is divided into three categories. The first two have different asset multiplier rates,\* which reflect the time, complexity, and expertise associated with recommending and servicing accounts in each category ("compensation factors"). Category 1 covers fee-based portfolio management services, and Category 2 covers portfolio management referrals and non-managed accounts. The asset multiplier rates change monthly based on fluctuations over time in assets and revenue associated with the products and services in Category 1 and Category 2.
87
88\*The asset multiplier rate range is based on fluctuations in revenue and assets over time.
89
90We aggregate within each of these two categories a range of advisory programs or investment products that are similar in terms of complexity and the time, on average, it is expected to take a Financial Consultant to work with a client. We do this to guard against a Financial Consultant having undue incentives when giving investment advice. Relationship Pay applies whether a Financial Consultant recommended or sold the product or service to the client, or the client made the purchase or enrollment decision on his or her own.
91
92As shown in the tables below, Financial Consultants receive more compensation for some products and services than others. Financial Consultants are eligible to receive 7%, 8%, or 9% of the amount resulting from application of the asset multiplier rate, depending on a Financial Consultant's professional experience and past work performance.
93
94The third category of Relationship Pay is for credit products.
95
96#### Relationship Pay Based on Account Balances
97
98| Category 1
99Portfolio Management Services (typically have more involved ongoing service needs) | Category 1
100Annual Relationship Pay per $100,000 of Client Balances |
101| --- | --- |
102|
103- Schwab Wealth Advisory™
104- Schwab Managed Portfolios™
105- Schwab Managed Account Services™ (which includes ThomasPartners® Strategies, Windhaven® Strategies, Wasmer Schroeder™ Fixed Income Strategies, Wasmer Schroeder Municipal Bond Ladder Strategies, Wasmer Schroeder Taxable Bond Ladder Strategies, Charles Schwab Investment Management Separately Managed Accounts, Diversified Portfolios, Third-Party Managers, Schwab Personalized Indexing™, and Selective Portfolios)
106- Schwab Guided Portfolios™
107
108 |
109
110The asset multiplier rate used for Category 1 could range between 32 and 42 basis points, which is multiplied by a Financial Consultant's particular payout rate.
111
112This results in a payment between:
113
114$22.40 (100,000 × .0032 × .07) and
115$29.40 (100,000 × .0042 × .07),
116
117$25.60 (100,000 × .0032 × .08), and
118$33.60 (100,000 × .0042 × .08) or
119
120$28.80 (100,000 × .0032 × .09) and
121$37.80 (100,000 × .0042 × .09)
122
123 |
124
125| Category 2
126Portfolio Management Referrals and Non-Managed Accounts (typically have less involved ongoing service needs) | Category 2
127Annual Relationship Pay per $100,000 of Client Balances |
128| --- | --- |
129|
130- Schwab Advisor Network®
131- Schwab Intelligent Portfolios®
132- Schwab Personal Trust
133- Annuities (for Financial Consultants with an active insurance license)\*
134- Wasmer Schroeder™ Ultra Short Strategies
135- Wasmer Schroeder™ Treasury Bond Ladder Strategies
136- Schwab Alternative Investments Select
137
138Balances in self-directed or non-managed accounts are treated the same, regardless of whether the assets are in affiliated or third-party products or different share classes. The payout rate is the same for stocks, bonds, mutual funds, ETFs, cash (including Schwab Bank deposits), option positions, and 529 accounts.
139
140 |
141
142The asset multiplier rate used for Category 2 could range between 9 and 12 basis points, which is multiplied by a Financial Consultant's particular payout rate.
143
144This results in a payment between:
145
146$6.30 (100,000 × .0009 × .07) and
147$8.40 (100,000 × .0012 × .07),
148
149$7.20 (100,000 × .0009 × .08) and
150$9.60 (100,000 × .0012 × .08), or
151
152$8.10 (100,000 × .0009 × .09) and
153$10.80 (100,000 × .0012 × .09)
154
155 |
156
157| Category 3
158Non-investment Advice Products and Activities |
159| --- |
160|
161Credit Products:
162
163- Margin Loans
164- Schwab Bank Home Equity Line of Credit (HELOC)
165- Schwab Bank Pledged Asset Line® (PAL)
166
167Financial Consultants receive a payment of 4.4 basis points per $100,000 of client loan balance. This results in a payment of $44 per $100,000 loan ($100,000 × .00044).
168
169 |
170
171When a client in a Financial Consultant's practice is enrolled in a participating portfolio management service and receives a refund of their program fee under the Schwab Satisfaction Guarantee, Schwab will debit the amount of Relationship Pay the Financial Consultant receives by a percentage of the amount of the fee refunded.
172
173#### Solutions Pay
174
175Solutions Pay compensates a Financial Consultant for attracting new clients and assets to Schwab and recommending products and portfolio management services. It is a one-time payment and applies whether a Financial Consultant recommends a product or service or the client makes the purchase or enrollment decision on his or her own. The exception is for Schwab Intelligent Portfolios®, which the Financial Consultant must recommend, and into which the client must enroll in order for the Financial Consultant to receive Solutions Pay.
176
177Category 1, asset consolidation, pays the same rate no matter what investment product a Financial Consultant might recommend or a client might purchase on his or her own. Category 2, which includes most portfolio management services (except for Wasmer Schroeder™ Ultra Short Strategies and Wasmer Schroeder™ Treasury Bond Ladder Strategies), pays the same rate no matter which service a Financial Consultant might recommend. The different rates paid between Category 1 and Category 2 are based on the additional time, complexity, and expertise necessary to assess a client's needs and recommend our portfolio management services. Category 3, other products, includes activities in which a Financial Consultant is not providing investment advice. Generally, if assets leave a Financial Consultant's practice, that loss is netted against asset gains to a Financial Consultant's practice for purposes of calculating Solutions Pay.
178
179Solutions Pay is paid to the Financial Consultant monthly.
180
181#### Solutions Pay
182
183| Category 1
184Asset Consolidation | Category 1
185Financial Consultant's Compensation1 | Category 1
186One-Time Solutions Payment |
187| --- | --- | --- |
188| Net Asset Flows (total inflow of client assets minus the total outflow of client assets) | 0.0008 × Net Asset Flows | $80 per $100,000 of Client Balances |
189
1901 Schwab may cap the amount of incentive compensation that a Financial Consultant can earn from any one client from the Solutions Pay component.
191
192| Category 2
193Portfolio Management Services\* | Category 2
194Financial Consultant's Compensation1 | Category 2
195One-Time Solutions Payment |
196| --- | --- | --- |
197|
198- Schwab Wealth Advisory™
199- Schwab Intelligent Portfolios®
200- Schwab Advisor Network®
201- Schwab Personal Trust-Full Corporate Trustee and Self-Directed
202- Schwab Managed Portfolios™
203- Schwab Managed Account Services™ (which includes ThomasPartners® Strategies, Windhaven® Strategies, Wasmer Schroeder™ Fixed Income Strategies, Wasmer Schroeder Municipal Bond Ladder Strategies, Wasmer Schroeder Taxable Bond Ladder Strategies, Charles Schwab Investment Management Separately Managed Accounts, Diversified Portfolios, Third-Party Managers, Schwab Personalized Indexing™, and Selective Portfolios)
204- Schwab Guided Portfolios™
205
206 | 0.002 × amount enrolled | $200 per $100,000 of Client Balances |
207| Annuities by a Financial Consultant with an active insurance license | 0.002 × annuity amount | $200 per $100,000 of Client Balances |
208
209\*Excludes Wasmer Schroeder™ Ultra Short Strategies and Wasmer Schroeder™ Treasury Bond Ladder Strategies.
210
2111 Schwab may cap the amount of incentive compensation that a Financial Consultant can earn from any one client from the Solutions Pay component.
212
213| Category 3
214Other Products | Category 3
215Financial Consultant's Compensation1 | Category 3
216One-Time Solutions Payment |
217| --- | --- | --- |
218| Introductions to Charles Schwab Bank, SSB for mortgages by Financial Consultants who are also employees of Charles Schwab Bank, SSB | 0.002 × loan amount for new mortgages;
2190.0011 × loan amount for refinanced loans | $200 per $100,000 of loan amount
220$110 per $100,000 of loan amount |
221| Referrals to Schwab Bank Pledged Asset Line® (PAL) | $120 per opened account | $120 |
222| Schwab Personal Trust-Successor Trustee | $175 per household designation | $175 |
223| Referrals to a donor-advised fund account with DAFgiving360™2 | $175 per converted referral for new accounts over $25,000 | $175 |
224| Referrals to Life Insurance by a Financial Consultant with an active insurance license | $450 per converted referral | $450 |
225| Referrals to Long-Term Care Insurance by a Financial Consultant with an active insurance license | $450 per converted referral | $450 |
226| Referrals to Schwab Advisor Services™ | $800 for referrals up to $30 million;
227$3,500 for referrals of $30+ million | $800 or $3,500 |
228| Referrals to Schwab Retirement Plan Services or Retirement Business Services | 0.002 × amount of assets referred;
229$250,000 minimum asset level to $10,000,000 maximum asset level | $500 for a $250,000 referral |
230| Schwab Alternative Investments Select | 0.002 × amount invested | $200 per $100,000 of amount invested |
231| Referrals to Wealth Services | 0.0004 × amount referred;
232$10 million minimum asset level | $400 per $1,000,000 referred |
233| Referrals to International Services | 0.0004 × amount referred | $400 per $1,000,000 referred |
234
2351 Schwab may cap the amount of incentive compensation that a Financial Consultant can earn from any one client from the Solutions Pay component.
236
2372 DAFgiving360 is the name used for the combined programs and services of Donor Advised Charitable Giving, Inc., an independent nonprofit organization that has entered into service agreements with certain subsidiaries of The Charles Schwab Corporation. DAFgiving360 is a tax-exempt public charity as described in Sections 501(c)(3),
238509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code.
239
240#### Bringing Together a Financial Consultant's Pay
241
242As an example, suppose an in-practice client of a Financial Consultant brings a portfolio of $500,000 to Schwab and invests it as follows:
243
244- $200,000 into Schwab Wealth Advisory™
245- $100,000 into Mutual Funds
246- $100,000 into ETFs
247- $100,000 in Cash
248
249#### The Financial Consultant would earn annual compensation as follows:
250
251| Payment Type | Description | Compensation Amount |
252| --- | --- | --- |
253| Solutions Pay (one-time payments) | $500,000 transfer into Schwab | $400 |
254| Solutions Pay (one-time payments) | $200,000 enrollment into Schwab Wealth Advisory™ | $400 |
255| Relationship Pay (annual payments) | $200,000 balance in Schwab Wealth Advisory™ | $44.80-$75.60 |
256| Relationship Pay (annual payments) | $100,000 balance in Mutual Funds | $6.30-$10.80 |
257| Relationship Pay (annual payments) | $100,000 balance in Cash | $6.30-$10.80 |
258| Relationship Pay (annual payments) | $100,000 balance in ETFs | $6.30-$10.80 |
259| | TOTAL
260$863.70-$908.00 |
261
262### Investment Consultants
263
264#### What They Do
265
266Investment Consultants assist and meet with clients who are not assigned to a Financial Consultant's practice as well as with potential new clients to identify and analyze their financial needs.
267
268#### Compensation
269
270In addition to a base salary, Investment Consultants are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of service quality, client satisfaction, teamwork, and the provision of education and recommendations to our clients.
271
272### Client Relationship Specialists
273
274#### What They Do
275
276Client Relationship Specialists respond to the specific needs of clients and may direct clients to the appropriate Schwab representative.
277
278#### Compensation
279
280In addition to a base salary, Client Relationship Specialists are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of service quality, client satisfaction, sales support, and teamwork.
281
282### Financial Consultant Partners
283
284#### What They Do
285
286Financial Consultant Partners respond to the specific needs of clients and are assigned to specific Schwab representatives.
287
288#### Compensation
289
290In addition to a base salary, Financial Consultant Partners are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of service quality, client satisfaction, sales support, and teamwork.
291
292### VP-Assistant Branch Managers
293
294#### What They Do
295
296VP-Assistant Branch Managers lead a local market team composed of Financial Consultants, Investment Consultants, Financial Consultant Partners, Client Relationship Staff, and various internal and external partners. They provide local strategic direction and execution support, and they recruit and manage the local team.
297
298#### Compensation
299
300In addition to a base salary, Assistant Branch Managers are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of branch growth and productivity, client satisfaction, and development of staff.
301
302### VP-Branch Managers
303
304#### What They Do
305
306VP-Branch Managers lead a local market team composed of Financial Consultants, Investment Consultants, Financial Consultant Partners, Client Relationship Staff, and various internal and external partners. They provide local strategic direction and execution support, and they recruit and manage the local team. They are responsible for the performance of their branch.
307
308#### Compensation
309
310In addition to a base salary, Branch Managers are eligible to earn an annual bonus that is funded from a pool based on Schwab's performance and determined based on manager discretion, which may include consideration of branch growth and productivity, client satisfaction, risk management, and development of staff. They are also eligible to earn an annual bonus that is funded based on Schwab's performance and calculated based on their branch's net new assets and net new solutions performance relative to all other branches. A Branch Manager's bonus can be a significant amount, typically, but not limited to, approximately 45% of their total compensation.
311
312#### Branch Personnel
313
314US Branch Representatives, including VP-Branch Managers, are eligible for discretionary incentive compensation that is based on exceeding periodic Net Asset Flow goals for their assigned Branch or group of Branches. This compensation is in addition to the Solutions Pay for which Financial Consultants are eligible.
315
316## 2\. International Branch Representatives
317
318### International VP-Financial Consultants
319
320#### What They Do
321
322International VP-Financial Consultants provide services primarily to our clients residing outside the United States.
323
324#### Compensation
325
326These Financial Consultants are paid according to the same incentive plan as U.S. Financial Consultants, with the exception that some products available in the U.S. are not available to clients residing in some non-U.S. jurisdictions.
327
328### International Assistant Branch Managers
329
330#### What They Do
331
332International Assistant Branch Managers lead a local market team composed of Financial Consultants, Investment Consultants, Financial Consultant Partners, Client Relationship Staff, and various internal and external partners. They provide local strategic direction and execution support, and they recruit and manage the local team.
333
334#### Compensation
335
336In addition to a base salary, International Assistant Branch Managers are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of branch growth and productivity, client satisfaction, and development of staff.
337
338### International Branch Managers
339
340#### What They Do
341
342International Branch Managers lead a team composed of International Financial Consultants, Associate Financial Consultants, and Client Service Staff. Branch Managers provide strategic direction and execution support, recruit and manage the team, manage various risk factors around our business and accounts, and advance the Schwab brand.
343
344#### Compensation
345
346In addition to a base salary, Branch Managers are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of branch growth and productivity, client satisfaction, and development of staff.
347
348### International Branch Personnel
349
350International Branch Representatives, including International Branch Managers, are eligible for discretionary incentive compensation that is based on exceeding periodic Net Asset Flow goals for their assigned Branch or group of Branches. This compensation is in addition to the Solutions Pay for which International Financial Consultants are eligible.
351
352## 3\. Service Representatives
353
354### Customer Service and Brokerage Service Representatives
355
356#### What They Do
357
358Customer Service and Brokerage Service Representatives provide service to clients via telephone, email, and online chat; respond to telephone inquiries from clients about the products and services we offer; and may contact clients by phone or email.
359
360#### Compensation
361
362In addition to a base salary, these representatives are eligible to earn a quarterly bonus that is based on customer satisfaction and a quarterly bonus that is based on converted referrals, and an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of productivity, client satisfaction, quality assurance, internal referrals to Schwab teams, teamwork, and client feedback.
363
364## 4\. Specialty Representatives
365
366### New Client Investment Consultants
367
368#### What They Do
369
370New Client Investment Consultants interact with prospects and clients via telephone, through inbound and outbound calls. They work to understand client needs, discuss solutions, and introduce clients to a fully integrated relationship with Schwab. They also make referrals to partners to help clients select products that meet their objectives.
371
372#### Compensation
373
374In addition to a base salary, these consultants are eligible to earn additional incentive compensation based on the following criteria:
375
376- Client Navigation-A measurement of Net Assets Flow and enrollments in Portfolio Management Services. The New Client Investment Consultant is paid the same for Portfolio Management Services, regardless of what solution the client elects.
377- Manager Discretion-A quarterly discretionary incentive determined based on manager discretion, which may include consideration of service quality, client satisfaction, teamwork, and the provision of education and referrals to our clients.
378
379### Investor Development Consultants
380
381#### What They Do
382
383Investor Development Consultants interact with prospects and clients via telephone, through inbound and outbound calls. They work to understand client needs, discuss solutions, and introduce clients to a fully integrated relationship with Schwab. They also make referrals to partners to help clients select products that meet their objectives.
384
385#### Compensation
386
387In addition to a base salary, these consultants are eligible to earn additional incentive compensation based on the following criteria:
388
389- Client Navigation-A measurement of Net Assets Flow and enrollments in Portfolio Management Services. The Investor Development Consultant is paid the same for Portfolio Management Services, regardless of what solution the client elects.
390- Manager Discretion-A quarterly discretionary incentive based on manager discretion, which may include consideration of service quality, client satisfaction, teamwork, and the provision of education and referrals to our clients.
391
392### Financial Consultants (Financial Solutions Branch)
393
394#### What They Do
395
396Financial Consultants (Financial Solutions Branch) work with clients in a phone-based and virtual meeting environment. They develop new and existing client relationships, taking a planning-based approach to understand a client's needs and objectives. They provide education and recommendations to help clients select products-including investments, banking, and insurance-that meet client objectives. Each Financial Consultant supports a practice, which includes clients who are assigned to that Financial Consultant as a primary point of contact.
397
398#### Compensation
399
400In addition to a base salary, Financial Consultants (Financial Solutions Branch) are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of client satisfaction, service quality, client retention, contributions to the team, and Net New Assets to Schwab.
401
402### Branch Managers (Financial Solutions Branch)
403
404#### What They Do
405
406Branch Managers lead centralized teams of Financial Consultants (Financial Solutions Branch) who work with clients in a phone-based and virtual meeting environment. They provide strategic direction and execution support, and they recruit and manage the centralized team. They are responsible for the performance of their branch.
407
408#### Compensation
409
410In addition to a base salary, Branch Managers are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of client retention, branch growth and productivity, client satisfaction, and development of staff.
411
412### VP-Senior Wealth Consultants/Director, Senior Wealth Consultants
413
414#### What They Do
415
416VP-Senior Wealth Consultants/Director, Senior Wealth Consultants provide dedicated relationships to clients with at least $10M in investable assets at Schwab. They develop new and existing client relationships, taking a planning-based approach to understand a client's needs and objectives. They provide education and recommendations to help clients select the products that help meet their objectives and work with a team of experts in order to serve their complex and unique needs.
417
418#### Compensation
419
420In addition to a base salary, VP-Senior Wealth Consultants/Director, Senior Wealth Consultants are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of client satisfaction, service quality, client retention, contribution to the team, and Net New Assets to Schwab.
421
422### Wealth Consultant Partners
423
424#### What They Do
425
426Wealth Consultant Partners respond to the specific needs of clients and are assigned to specific Schwab representatives.
427
428#### Compensation
429
430In addition to a base salary, Wealth Consultant Partners are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of service quality, client satisfaction, sales support, and teamwork.
431
432### Specialty Representatives Personnel
433
434Specialty Representatives, including New Client Investment Consultants, Investor Development Consultants, Financial Solutions Branch, VP-Senior Wealth Consultants, and Wealth Consultant Partners, are eligible for discretionary incentive compensation that is based on exceeding periodic Net Asset Flow goals for their assigned teams. This compensation is in addition to the incentive compensation that New Client Investment Consultants and Investor Development Consultants are eligible.
435
436### Director-Schwab Private Wealth Services
437
438#### What They Do
439
440Director-Schwab Private Wealth Services is a business development role. They are responsible for prospecting, qualifying, and closing new SPWS accounts to Schwab. They serve as a resource and subject matter expert on SPWS and the specific needs of UHNW clients.
441
442#### Compensation
443
444In addition to a base salary, Directors - Schwab Private Wealth Services have the potential to earn additional incentive compensation based on Net New Assets brought to Schwab.
445
446### VP-Senior Client Consultants
447
448#### What They Do
449
450VP-Senior Client Consultants work with clients both in person (through our U.S. branch office locations) and by phone. They develop new and existing client relationships, generally using a planning-based approach to understand a client's needs and objectives. They provide education and recommendations to help clients select the products that help meet their objectives and work with a team of experts in order to serve their complex and unique needs.
451
452#### Compensation
453
454In addition to a base salary, VP-Senior Client Consultants are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of client satisfaction, service quality, client retention, contribution to the team, and Net New Assets to Schwab.
455
456### VP-Workplace Financial Consultants/Workplace Advice Consultants
457
458#### What They Do
459
460VP-Workplace Financial Consultants/Workplace Advice Consultants provide help to participants of corporate partners both in person (through employer corporate campuses) and virtually. Taking a planning-based approach to understand a client's needs and objectives, they provide education and recommendations to help clients select products-including investments, banking, and insurance-that meet client objectives. They provide holistic financial planning services to individuals that takes into consideration assets held in a qualified plan; they do not provide advice on such assets.
461
462Additionally, VP-Workplace Financial Consultants/Workplace Advice Consultants provide education and share recommendations made by a third-party advice vendor (e.g., Morningstar) to participants of retirement plans serviced by Schwab Retirement Plan Services, Inc. (SRPS). Services may include personalized one-on-one consultations, evaluation of investments and asset allocation, and discussion of financial goals (including retirement) to facilitate the third-party advice recommendations. The third-party advice provider takes into consideration both investments in employer-sponsored retirement plans, and other assets held outside of those plans, in developing the plan investment advice. If a participant is eligible for a distribution or a rollover, the VP-Workplace Financial Consultant/Workplace Advice Consultant discusses the participant's options, which may include keeping the participant's assets in their retirement plan, or recommendations to roll over to a Schwab IRA.
463
464#### Compensation
465
466In addition to a base salary, VP-Workplace Financial Consultants/Workplace Advice Consultants are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of client satisfaction, service, quality of financial plans delivered, feedback from the corporate client, and retention of plan assets.
467
468### Branch Managers (Workplace Branch)
469
470#### What They Do
471
472Branch Managers lead centralized teams of Workplace Financial Consultants, Workplace Advice Consultants, and Workplace Investment Consultants who work with participants of corporate partners in person (through employer corporate campuses) and/or in a virtual meeting environment. They provide strategic direction and execution support, and they recruit and manage the centralized team. They are responsible for the performance of their branch.
473
474#### Compensation
475
476In addition to a base salary, Branch Managers are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of client retention, branch growth and productivity, client satisfaction, and development of staff.
477
478### Trader Sales Representatives
479
480Trader Sales Representatives identify trading clients who can benefit from Schwab's trading tools and education. They do not provide trading advice. The group consists of regionally based Regional Investment Strategists who work with local branches, as well as phone-based Trading Consultants and Education Specialists.
481
482- Regional Investment Strategists (RISs)
483
484What They Do
485
486Regional Investment Strategists support a designated region of clients assigned to local Financial Consultants' practices. They work with Financial Consultants by serving as their primary point of contact for trading clients. They also assist high net worth clients not assigned to a Financial Consultant's practice.
487
488Compensation
489
490In addition to a base salary, RISs are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of frequency of one-on-one client consultations, regional client growth and retention, local market seminars and events hosted, market area lead-flow generation, and client satisfaction.
491
492- Trading Consultants
493
494What They Do
495
496Trading Consultants interact with prospects and clients via telephone, through inbound and outbound calling. They work to understand client trading needs and position appropriate trading tools, research and education.
497
498Compensation
499
500In addition to a base salary, these consultants have the potential to earn additional monthly and quarterly incentive compensation. The monthly incentive is based on the following criteria:
501
502- Bringing Net New Assets to Schwab.
503- Referring a client who attends a new client/options consultation, a consultation with a Regional Investment Strategist, an in-branch workshop, or a seminar.
504
505The quarterly discretionary incentive is determined based on manager discretion, which may include consideration of efficiency, productivity, partnership, focus negotiation, service quality, and accuracy.
506
507- Trader Education Specialists
508
509What They Do
510
511Trader Education Specialists partner with Trading Consultants to help onboard new clients. Education Specialists conduct phone-based, customized, one-on-one consultations with new clients to teach them how to leverage Schwab's trading platforms, tools, and research resources.
512
513Compensation
514
515In addition to a base salary, Education Specialists are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of quantity of one-on-one client consultations, quality of consultation interactions, client engagement, and whether clients leverage subsequent education.
516
517### Fixed Income Specialists
518
519Fixed Income Specialists serve clients with fixed income investing needs. The group consists of Regional Bond Specialists and Bond Investment Specialists. Neither group earns commissions on transactions. Nor does it matter whether a transaction is executed as agent, as a riskless principal, or from Schwab's own inventory.
520
521- Regional Bond Specialists
522
523What They Do
524
525Regional Bond Specialists provide advice and service to Schwab clients specific to their fixed income investing needs.
526
527Compensation
528
529In addition to a base salary, these specialists are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on subjective measures at manager discretion, which may include relationship management, business development, quality assurance, teamwork, client reviews, and field partnerships.
530
531- Bond Investment Specialists
532
533What They Do
534
535Bond Investment Specialists advise and serve clients with fixed income investing needs by responding to inbound phone calls.
536
537Compensation
538
539In addition to a base salary, these specialists are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of quality assurance, teamwork, and initiative.
540
541### Regional Annuity Specialists (Annuity Specialists)
542
543#### What They Do
544
545The Annuity Specialists provide Financial Consultants and clients with general information and advice on annuity products and services, and the sale of annuity products offered by Schwab. They also provide existing annuity clients with ongoing service and support.
546
547#### Compensation
548
549In addition to a base salary, the Annuity Specialists are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of annuity sales and guidance, client feedback, and teamwork. The compensation is not tied to the sale of any specific annuity or annuity type.
550
551### Regional Banking Managers
552
553#### What They Do
554
555As Charles Schwab Bank, SSB employees, Regional Banking Managers provide Financial Consultants and clients with information about bank lending products. They also provide existing clients with ongoing service.
556
557#### Compensation
558
559In addition to a base salary, Regional Banking Managers are eligible to earn additional incentive compensation that is determined based on the following criteria:
560
561- Sales of bank lending products, including PAL and First Mortgage.
562- Manager Discretion-A quarterly discretionary incentive determined based on manager discretion, which may include consideration of service quality, teamwork, and the provision of education on bank offerings such as trust services and deposit solutions.
563
564### Portfolio Solutions Consultants
565
566#### What They Do
567
568Portfolio Solutions Consultants are an ongoing resource for clients who are not currently assigned to a Financial Consultant and are invested in most Schwab managed solutions. The Portfolio Solutions Consultants are available to provide portfolio analysis, retirement planning, and advice regarding other wealth management topics. As part of any client conversation, the Portfolio Solutions Consultants ensure ongoing suitability of investments and make recommendations from a variety of investment products offered at Schwab.
569
570#### Compensation
571
572In addition to a base salary, these representatives are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of the quality of the representative's interactions with clients, client satisfaction, teamwork, training, professional development, and accuracy.
573
574### Financial Planning Specialists
575
576#### What They Do
577
578Financial Planning Specialists work with clients to create a financial plan and personalized wealth management strategy that addresses topics such as retirement planning, distribution and income strategies, education planning, risk management, and estate planning.
579
580#### Compensation
581
582In addition to a base salary, these specialists are eligible to earn an annual bonus based on factors such as corporate and individual performance.
583
584### Alternative Investment Consultants
585
586#### What They Do
587
588The Alternative Investment Consultants (AICs) supported by Associate AICs assist clients seeking to invest in Alternative Investment Funds on Schwab's Alternative Investment Select platform, by educating/advising and recommending purchase of Alternative Investment Funds on Schwab's Alternative Investment Select platform.
589
590#### Compensation
591
592In addition to a base salary, the Alternative Investment Consultants and Associate AICs are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of relationship management, client feedback, and teamwork. The compensation is not tied to the sale of any specific alternative investment or other product.
593
594## 5\. Schwab Independent Branch Services Representatives
595
596Schwab Independent Branch Leaders (IBLs) are franchisees who operate Schwab Independent Branches pursuant to a franchise agreement with Schwab. IBLs may employ IB representatives (Financial Consultants, Associate Financial Consultants, and Client Service Specialists, who may or may not be registered).
597
598IB registered personnel are not Schwab employees, but they are registered representatives of Schwab for purposes of securities regulations. IBLs receive a portion of the revenue generated by the activities and assets in accounts of Schwab clients assigned to their independent branches. IB representatives also may share in the revenue earned by their IBL employer. Schwab notifies clients when they are assigned to an Independent Branch.
599
600### Independent Branch Leaders
601
602#### Payout
603
604IBLs are not paid commissions for the sale of any specific product or service, nor does Schwab pay them a salary or the incentive compensation earned by representatives who are employed by Schwab. Instead, they earn revenue from their business, the overall amount of which is based on the revenue Schwab earns from clients whose accounts are assigned to their independent branch, and revenue for insurance and financial plans as described below.
605
606For purposes of revenue earned by the IBLs, the assets in accounts assigned to them are divided into two categories. As with employee representatives, the difference in average rates between these two categories is based on the time and expertise necessary to recommend and service different products and programs and the inherent complexity and variety attributable to such products and services. Because IBLs are franchisees rather than employees, and because they are therefore expected and encouraged to have more individual control of the management of their time, only two rates are applied to the assets assigned to them.
607
608- Advisor Assets-Assets in accounts enrolled in Schwab Wealth Advisory™, Schwab Managed Portfolios™, Schwab Managed Account Select®, Schwab Managed Account Connection® (discretionary wrap-fee programs that include ThomasPartners® Strategies, Windhaven® Strategies, and Wasmer Schroeder™ Strategies), Schwab Guided Portfolios™, or accounts managed by an independent third-party investment advisor to whom the client was referred through the Schwab Advisor Network® service, or assets invested in a registered annuity; and
609- Non-Advisor Assets-Assets not in the Advisor Assets category, which include stocks, bonds, mutual funds, Schwab Intelligent Portfolios®, and ETFs, as well as payment for providing cash management services.
610
611Each month, Schwab calculates and applies an Advisor Assets Average Rate and a Non-Advisor Assets Average Rate to the assets in accounts assigned to all Schwab Independent Branches.
612
613The rates are calculated by looking at 12-month trailing assets and revenue from all Schwab Independent Branch accounts.
614
615Schwab applies these Average Rates to the daily average assets in each category in accounts assigned to individual Schwab Independent Branches. The Average Rates change monthly, but the Advisor Assets Average Rates are higher based on the factors noted above. An IBL, therefore, can earn more money when recommending that a client enrolls or opens an account in one of the services in the Advisor Assets category.
616
617Schwab also calculates the actual revenue earned by Schwab (often one-time but in some cases recurring) from sales of Immediate and Fixed Deferred Annuities, Long-Term Care Insurance, Permanent Life Insurance, Disability Insurance, and Term Life Insurance (collectively, "Insurance Products"). Additionally, IBLs may refer clients to the Schwab Plan Comprehensive or Personal Financial Plan (collectively, "Fee-Based Financial Plans").
618
619After adding together the figures for Advisor Assets and Non-Advisor Assets, Schwab applies a multiplier based on the tenure of the IBL and type of client. In years one through five, the IBL's payout share is adjusted using a multiplier ranging from 185% to 55%, and then, in years six and beyond, the payout share is adjusted using a 50% multiplier. Then revenue from insurance products and fee-based financial plans, adjusted using the 50% multiplier in all years, are added to the Advisor Assets and Non-Advisor Assets amounts. (Note: For assets of clients who transition to Schwab from an IBL's prior firm, the IBL may elect a constant multiplier of 50% in exchange for an increased ability to ask such clients to transition away from Schwab if the franchise agreement ends.)
620
621Finally, Schwab deducts certain monthly fees and expenses from the total adjusted revenue amount that the IBL owes to Schwab under the franchise agreement. This results in a net payout for the month.
622
623### IB Representatives
624
625#### Compensation
626
627IB Representatives are employees of the IBL. They receive a salary paid by the IBL and, as determined by the IBL as their employer, may be eligible for a bonus.
628
629The criteria used to determine the amount of the bonus may include such factors as Net New Assets, Branch Assets, and Client Promoter Score. These criteria do not include recommendations of any specific product, offer, or service.
630
631## 6\. Schwab Wealth Advisory, Inc.
632
633All personnel who provide planning, portfolio advice, or wealth management education, and service within Schwab Wealth Advisory™ ("SWA"), including all Wealth Advisors, Associate Wealth Advisors, Specialists and the SWA service team are employed by Schwab Wealth Advisory, Inc., ("SWAI") a separate but affiliated Retail Investment Adviser.
634
635Schwab Wealth Advisory, Inc. advice providers, including Wealth Advisors, Associate Wealth Advisors, Fixed Income and Options Specialists, Financial Planners, and Alternative Investment Consultants, do not receive differential compensation based on what they recommend to clients, nor is their compensation based on investment performance. In addition to a base salary, they are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion.
636
637### Director, Wealth & Asset Management Solutions
638
639#### What They Do
640
641Director, Wealth & Asset Management Solutions interact with clients whose investment objectives may be met by Schwab Wealth Advisory, as initially determined by Schwab Financial Consultants. They provide additional education and advice about the features of Schwab Wealth Advisory and meet with clients both in person (through our U.S. branch office locations) and by phone.
642
643#### Compensation
644
645In addition to a base salary, Wealth & Asset Management Solutions Directors are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of service quality, client satisfaction, branch engagement, prospect engagement, relationship management, leadership, development, asset flows into the SWA Program, teamwork, and training.
646
647### Tax, Trust & Estate Specialists
648
649#### What They Do
650
651Tax, Trust & Estate Specialists work with clients to provide personalized tax, trust, and estate educational information that complements the client's overall wealth management strategy.
652
653#### Compensation
654
655In addition to a base salary, Tax, Trust & Estate Specialists are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of client satisfaction, relationship management, quality assurance, teamwork, and partnership feedback.
656
657### Equity Compensation Specialists
658
659#### What They Do
660
661Equity Compensation Specialists assist clients and prospects with strategies to manage the value of their company stock and options more effectively. The consultation is highly customized and includes an action plan that considers general tax principles, risk management/diversification needs, target exercise prices, scenario management, and personal considerations.
662
663#### Compensation
664
665In addition to a base salary, these specialists are eligible to earn an annual bonus based on factors such as corporate and individual performance.
666
667### Portfolio Transition Specialists
668
669#### What They Do
670
671Portfolio Transition Specialists are partners to Financial Consutants,Wealth Consultants & Wealth Advisors, and their clients or prospects seeking to transition their existing investment holdings into other products or service while considering estimated potential tax liabilities. These transition analyses deliver actionable and customized portfolio strategies to drive better client outcomes.
672
673#### Compensation
674
675In addition to a base salary, these specialists are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion.
676
677If you have questions about information contained in these pages, please call 800-435-4000. For media inquiries, please call the Schwab Corporate Public Relations hotline at 415-667-9500.
678
679Third-party trademarks appearing in this document are the property of their respective owners.
680
681Please note that the information in these pages does not apply to Schwab accounts managed by an independent investment advisor. Independent investment advisors are not owned by, affiliated with, or supervised by Charles Schwab & Co., Inc. ("Schwab").
682
683©2026 Charles Schwab & Co., Inc. All rights reserved. [Member SIPC](https://www.sipc.org/).
684E-0326-03923 REG31752-57 (03/26)