In this episode, we're going to be talking about equity sharing and compensation issues for running practices. I have with me today Carolyn Armitage. She started her career as an advisor She possesses firsthand knowledge and deep empathy for the challenges advisors face with the CFP and CIMA designations. She's held roles as a consultant to CEOs of wealth management firms, the head of wealth management for several firms and an investment banker. Collectively, her years in the industry have positioned her to learn and share valuable insights with advisors in the field. And she has her own consultancy firm where she's actively working with advisors for a lot of these initiatives. niche issues that they can encounter running their practices.

Key takeaways:
-Don’t wait until turnover to figure out the compensation issue for your talent
-The amount of compensation is the easy part; it’s more of a cultural issue of what their goals are and your goals are in the business that you need to solve for.
-You can’t just throw equity at larger mission vision problems
-What do you employees really want? Do they actually want the risks and benefits of ownership?
-Or is it really that they want a profit share?
-But for those who truly do want equity, but you’re not ready to give it up there’s been a suggestion around Phantom plans in the industry.
-Phantom plans are just that and can be offensive to talent that really is ready for the equity upgrade
-Advisors know it’s really just a cash bonus plan that can easily backfire
-With some really negative tax implications (because it’s not real equity, they pay ordinary income tax rates on “sales”)
-Consider having tiered plans between admin staff and executive staff that are aligned around the individual’s capabilities and goals
-The biggest takeaway, the question of what you should be doing for compensation goes to the core of how your employees are relating to your organization and the level of buy-in you have to their success and what they’ll have to yours.

Looking for a more holistic relationship with your taxes? Book 15 minutes to have a coffee chat with Catherine to see if you could be doing more: https://calendly.com/ctindall/podcast-getting-to-know-you

Sign-up for our newsletter for the only tax update you’ll need to read and future episodes here and how to get in touch with Catherine: https://dominion-enterprise-services.ck.page/9944b047d9

Visit us at DominionEs.com

Carolyn Armitage
https://carolynarmitageconsulting.com

Looking for a more holistic relationship with your taxes? Book 15 minutes to have a coffee chat with Catherine to see if you could be doing more: https://calendly.com/ctindall/podcast-getting-to-know-you

Sign-up for our newsletter for the only tax update you’ll need to read and future episodes here and how to get in touch with Catherine: https://dominion-enterprise-services.ck.page/9944b047d9

Visit us at DominionEs.com

Connect with Catherine on LinkedIn