[{"data":1,"prerenderedAt":121},["ShallowReactive",2],{"global":3,"article-rias-are-adding-long-term-incentive-plans-faster-than-they-are-deciding-who-qualifies-the-wire":24},{"title":4,"slug":4,"phone":5,"email":8,"company_name":9,"address":10,"social_media":14,"subscription_label":23},"global",{"number":6,"href":7},"480.245.5094","tel:+14802455094","info@advisorgrowthllc.com","Advisor Growth Strategies",{"label":11,"href":12,"embed":13},"3225 N Central Ave Suite 100\u003Cbr>Phoenix, AZ 85012","https://goo.gl/maps/AKR7R4EPd2Mn7J8k7","",[15,19],{"account":16,"href":17,"aria":18},"envelope","mailto:info@advisorgrowthllc.com","email info@advisorgrowthllc.com",{"account":20,"href":21,"aria":22},"linkedin","https://www.linkedin.com/company/advisor-growth-strategies-llc/","LinkedIn icon opens new window","Stay Current on Industry Trends",{"id":25,"date":26,"date_gmt":26,"guid":27,"modified":29,"modified_gmt":29,"slug":30,"status":31,"type":32,"link":33,"title":34,"template":13,"meta":36,"the-wire-categories":38,"the-wire-archive-categories":39,"thought-leadership-categories":40,"class_list":42,"acf":48,"_links":63,"_embedded":94},2864,"2026-11-09T17:04:51",{"rendered":28},"https://api2.advisorgrowthllc.com/?post_type=the-wire&p=2864","2026-11-09T17:58:11","rias-are-adding-long-term-incentive-plans-faster-than-they-are-deciding-who-qualifies","publish","the-wire","https://api2.advisorgrowthllc.com/the-wire/rias-are-adding-long-term-incentive-plans-faster-than-they-are-deciding-who-qualifies/",{"rendered":35},"RIAs Are Adding Long-Term Incentive Plans Faster Than They Are Deciding Who Qualifies",{"_acf_changed":37},false,[],[],[41],21,[43,32,44,45,46,47],"post-2864","type-the-wire","status-publish","hentry","thought-leadership-categories-compensation-and-equity-planning",{"seo":49,"custom_post":55},{"page_title":50,"page_description":51,"page_keywords":13,"additional_settings":37,"social_meta":52},"RIAs Are Adding Long-Term Incentive Plans Faster Than They Are Deciding Who Qualifies ","RIAs are adding phantom equity and profits interests quickly, but eligibility still runs on discretion. See what AGS’s 2026 Compensation Trends Survey found.",{"og_meta":53},{"title":13,"description":13,"image":54},"https://dld7fz6mejerl.cloudfront.net/logo/logo.jpg",{"title":50,"author":13,"time":13,"excerpt":56,"internal_content":57,"link":61,"image":62,"feature_headline":13},"\u003Cp>RIAs are adding phantom equity and profits interests quickly, but eligibility still runs on discretion. Survey data on how firms can tie LTIPs to growth. See what AGS’s 2026 Compensation Trends Survey found.\u003C/p>\n",{"content_type":58,"date":59,"article_content":60,"pdf_embed":37},"Article","November 9, 2026","\u003Cp style=\"margin: .5em 0;\">Long-term incentive plans, the deferred awards such as phantom equity or profits interests that pay out based on what the firm becomes worth, have moved from an exception to a regular part of RIA compensation. In the Advisor Growth Strategies 2026 Compensation Trends Survey of RIAs, 59% of firms reported having an LTIP on top of salary and annual incentives, and another 29% said they don’t have one yet but are interested in adding it. Only 12% said they had no interest at all.\u003C/p>\n\u003Cfigure style=\"margin: 32px 0; padding: 24px; border: 1px solid #E3E3E6; border-radius: 6px; background: #FFFFFF;\">\u003Cfigcaption style=\"font-size: 18px; font-weight: bold; color: #28303e; margin: 0 0 4px 0; line-height: 1.3;\">59% of RIAs Have a Long-Term Incentive Plan\u003C/figcaption>\u003Cdiv style=\"font-size: 13px; color: #4e4e50; margin: 0 0 18px 0; line-height: 1.4;\">Does your firm have a long-term incentive plan in place?\u003C/div>\n\u003Ctable style=\"width: 100%; border-collapse: collapse; border: none; margin: 0;\" role=\"presentation\">\n\u003Ctbody>\n\u003Ctr>\n\u003Ctd style=\"width: 40%; padding: 6px 12px 6px 0; font-size: 14px; color: #28303e; line-height: 1.3; border: none; vertical-align: middle;\">Yes, phantom equity\u003C/td>\n\u003Ctd style=\"padding: 6px 0; border: none; vertical-align: middle;\">\n\u003Cdiv style=\"display: flex; align-items: center;\">\n\u003Cdiv style=\"width: 70.7%; height: 20px; background: #28303E; border-radius: 2px; flex: none;\">\u003C/div>\n\u003Cp>\u003Cspan style=\"font-size: 14px; font-weight: bold; color: #28303e; margin-left: 8px; white-space: nowrap;\">25%\u003C/span>\n\u003C/div>\n\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd style=\"width: 40%; padding: 6px 12px 6px 0; font-size: 14px; color: #28303e; line-height: 1.3; border: none; vertical-align: middle;\">Yes, profits interest\u003C/td>\n\u003Ctd style=\"padding: 6px 0; border: none; vertical-align: middle;\">\n\u003Cdiv style=\"display: flex; align-items: center;\">\n\u003Cdiv style=\"width: 56.6%; height: 20px; background: #28303E; border-radius: 2px; flex: none;\">\u003C/div>\n\u003Cp>\u003Cspan style=\"font-size: 14px; font-weight: bold; color: #28303e; margin-left: 8px; white-space: nowrap;\">20%\u003C/span>\n\u003C/div>\n\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd style=\"width: 40%; padding: 6px 12px 6px 0; font-size: 14px; color: #28303e; line-height: 1.3; border: none; vertical-align: middle;\">Yes, other\u003C/td>\n\u003Ctd style=\"padding: 6px 0; border: none; vertical-align: middle;\">\n\u003Cdiv style=\"display: flex; align-items: center;\">\n\u003Cdiv style=\"width: 22.6%; height: 20px; background: #28303E; border-radius: 2px; flex: none;\">\u003C/div>\n\u003Cp>\u003Cspan style=\"font-size: 14px; font-weight: bold; color: #28303e; margin-left: 8px; white-space: nowrap;\">8%\u003C/span>\n\u003C/div>\n\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd style=\"width: 40%; padding: 6px 12px 6px 0; font-size: 14px; color: #28303e; line-height: 1.3; border: none; vertical-align: middle;\">Yes, deferred compensation\u003C/td>\n\u003Ctd style=\"padding: 6px 0; border: none; vertical-align: middle;\">\n\u003Cdiv style=\"display: flex; align-items: center;\">\n\u003Cdiv style=\"width: 17.0%; height: 20px; background: #28303E; border-radius: 2px; flex: none;\">\u003C/div>\n\u003Cp>\u003Cspan style=\"font-size: 14px; font-weight: bold; color: #28303e; margin-left: 8px; white-space: nowrap;\">6%\u003C/span>\n\u003C/div>\n\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd style=\"width: 40%; padding: 6px 12px 6px 0; font-size: 14px; color: #28303e; line-height: 1.3; border: none; vertical-align: middle;\">No, but interested in adding\u003C/td>\n\u003Ctd style=\"padding: 6px 0; border: none; vertical-align: middle;\">\n\u003Cdiv style=\"display: flex; align-items: center;\">\n\u003Cdiv style=\"width: 82.0%; height: 20px; background: #977E43; border-radius: 2px; flex: none;\">\u003C/div>\n\u003Cp>\u003Cspan style=\"font-size: 14px; font-weight: bold; color: #28303e; margin-left: 8px; white-space: nowrap;\">29%\u003C/span>\n\u003C/div>\n\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd style=\"width: 40%; padding: 6px 12px 6px 0; font-size: 14px; color: #28303e; line-height: 1.3; border: none; vertical-align: middle;\">No, and not interested\u003C/td>\n\u003Ctd style=\"padding: 6px 0; border: none; vertical-align: middle;\">\n\u003Cdiv style=\"display: flex; align-items: center;\">\n\u003Cdiv style=\"width: 33.9%; height: 20px; background: #D0D0D0; border-radius: 2px; flex: none;\">\u003C/div>\n\u003Cp>\u003Cspan style=\"font-size: 14px; font-weight: bold; color: #28303e; margin-left: 8px; white-space: nowrap;\">12%\u003C/span>\n\u003C/div>\n\u003C/td>\n\u003C/tr>\n\u003C/tbody>\n\u003C/table>\n\u003Cdiv style=\"margin: 14px 0 0 0; font-size: 13px; color: #4e4e50;\">\u003Cspan style=\"display: inline-block; margin: 0 16px 4px 0; white-space: nowrap;\">Has an LTIP (59%)\u003C/span>\u003Cspan style=\"display: inline-block; margin: 0 16px 4px 0; white-space: nowrap;\">Interested (29%)\u003C/span>\u003Cspan style=\"display: inline-block; margin: 0 16px 4px 0; white-space: nowrap;\">Not interested (12%)\u003C/span>\u003C/div>\n\u003Cdiv style=\"font-size: 12px; color: #4e4e50; margin: 10px 0 0 0; line-height: 1.4;\">Source: Advisor Growth Strategies, 2026 Compensation Trends Survey (n=51).\u003C/div>\n\u003C/figure>\n\u003Cp style=\"margin: .5em 0;\">What the plans have in common is less settled than the fact that they exist. Most firms still decide who participates the same way they did when the partner group could fit around one table.\u003C/p>\n\u003Ch2 style=\"margin: .6em 0 0 0;\">Phantom Equity and Profits Interests Lead the Field\u003C/h2>\n\u003Cp style=\"margin: .5em 0;\">Phantom equity, which tracks the value of real shares without transferring ownership, was the most common structure at 25% of firms. Profits interests, which give a participant a share of the firm’s appreciation above its value on the day of the grant, followed at 20%. Together, those two structures account for 45% of respondents, all of them plans whose value rises only if the firm grows. Deferred compensation arrangements (6%) and other structures (8%) made up the rest.\u003C/p>\n\u003Cp style=\"margin: .5em 0;\">The appeal is similar across all of them. A firm can offer real upside to the people it most wants to keep, tie that upside to the long-term value of the business, and do it without adding fixed cost or, in the case of phantom equity, changing the cap table.\u003C/p>\n\u003Ch2 style=\"margin: .6em 0 0 0;\">Eligibility Still Comes Down to Who Leadership Picks\u003C/h2>\n\u003Cp style=\"margin: .5em 0;\">Asked how they determine whether a contributor is eligible for equity or an LTIP, 60% of firms pointed to management decision or discretion. Tenure and experience were cited by 24%, and revenue or business development metrics by 22%. Another 34% have no LTIP or no eligibility criteria in place. Respondents could choose more than one answer, so some firms blend criteria, but discretion leads by a wide margin.\u003C/p>\n\u003Cp style=\"margin: .5em 0;\">In a founder-led firm of a dozen people, discretion often works well enough. The founders know every contributor and can weigh judgment and client care alongside production. That gets harder as the firm adds advisors, builds teams, and starts developing its next generation of leaders. An LTIP is meant to change how people work, and it can only do that if participants can see how their work connects to what they may eventually earn. When eligibility rests on a judgment they can’t observe, the plan rewards people without steering them.\u003C/p>\n\u003Cp style=\"margin: .5em 0;\">There is also a continuity problem. Discretionary criteria tend to live in the heads of the partners applying them. When those partners retire or sell, the next leadership group inherits a plan without a rulebook, and any buyer evaluating the firm will want to know who is in the plan and why.\u003C/p>\n\u003Ch2 style=\"margin: .6em 0 0 0;\">Annual Compensation Is Already Specific\u003C/h2>\n\u003Cp style=\"margin: .5em 0;\">The same firms are often quite precise about what they reward year to year. Nearly half (48%) pay advisors ongoing compensation for relationships they originate, 42% offer a business development incentive, and 40% use a team or firm-based incentive. When asked for their single biggest compensation challenge, 16% named incentivizing the behaviors they want to see more of.\u003C/p>\n\u003Cfigure style=\"margin: 32px 0; padding: 24px; border: 1px solid #E3E3E6; border-radius: 6px; background: #FFFFFF;\">\u003Cfigcaption style=\"font-size: 18px; font-weight: bold; color: #28303e; margin: 0 0 4px 0; line-height: 1.3;\">Most Firms Pay Advisors a Base Salary Plus a Mix of Incentives\u003C/figcaption>\u003Cdiv style=\"font-size: 13px; color: #4e4e50; margin: 0 0 18px 0; line-height: 1.4;\">What components make up total advisor income? (Select all that apply)\u003C/div>\n\u003Ctable style=\"width: 100%; border-collapse: collapse; border: none; margin: 0;\" role=\"presentation\">\n\u003Ctbody>\n\u003Ctr>\n\u003Ctd style=\"width: 40%; padding: 6px 12px 6px 0; font-size: 14px; color: #28303e; line-height: 1.3; border: none; vertical-align: middle;\">Base salary\u003C/td>\n\u003Ctd style=\"padding: 6px 0; border: none; vertical-align: middle;\">\n\u003Cdiv style=\"display: flex; align-items: center;\">\n\u003Cdiv style=\"width: 82.0%; height: 20px; background: #93ABBE; border-radius: 2px; flex: none;\">\u003C/div>\n\u003Cp>\u003Cspan style=\"font-size: 14px; font-weight: bold; color: #28303e; margin-left: 8px; white-space: nowrap;\">92%\u003C/span>\n\u003C/div>\n\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd style=\"width: 40%; padding: 6px 12px 6px 0; font-size: 14px; color: #28303e; line-height: 1.3; border: none; vertical-align: middle;\">Discretionary bonus\u003C/td>\n\u003Ctd style=\"padding: 6px 0; border: none; vertical-align: middle;\">\n\u003Cdiv style=\"display: flex; align-items: center;\">\n\u003Cdiv style=\"width: 60.6%; height: 20px; background: #93ABBE; border-radius: 2px; flex: none;\">\u003C/div>\n\u003Cp>\u003Cspan style=\"font-size: 14px; font-weight: bold; color: #28303e; margin-left: 8px; white-space: nowrap;\">68%\u003C/span>\n\u003C/div>\n\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd style=\"width: 40%; padding: 6px 12px 6px 0; font-size: 14px; color: #28303e; line-height: 1.3; border: none; vertical-align: middle;\">Payout on revenue serviced\u003C/td>\n\u003Ctd style=\"padding: 6px 0; border: none; vertical-align: middle;\">\n\u003Cdiv style=\"display: flex; align-items: center;\">\n\u003Cdiv style=\"width: 42.8%; height: 20px; background: #93ABBE; border-radius: 2px; flex: none;\">\u003C/div>\n\u003Cp>\u003Cspan style=\"font-size: 14px; font-weight: bold; color: #28303e; margin-left: 8px; white-space: nowrap;\">48%\u003C/span>\n\u003C/div>\n\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd style=\"width: 40%; padding: 6px 12px 6px 0; font-size: 14px; color: #28303e; line-height: 1.3; border: none; vertical-align: middle;\">Pay for originated relationships\u003C/td>\n\u003Ctd style=\"padding: 6px 0; border: none; vertical-align: middle;\">\n\u003Cdiv style=\"display: flex; align-items: center;\">\n\u003Cdiv style=\"width: 42.8%; height: 20px; background: #977E43; border-radius: 2px; flex: none;\">\u003C/div>\n\u003Cp>\u003Cspan style=\"font-size: 14px; font-weight: bold; color: #28303e; margin-left: 8px; white-space: nowrap;\">48%\u003C/span>\n\u003C/div>\n\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd style=\"width: 40%; padding: 6px 12px 6px 0; font-size: 14px; color: #28303e; line-height: 1.3; border: none; vertical-align: middle;\">Business development incentive\u003C/td>\n\u003Ctd style=\"padding: 6px 0; border: none; vertical-align: middle;\">\n\u003Cdiv style=\"display: flex; align-items: center;\">\n\u003Cdiv style=\"width: 37.4%; height: 20px; background: #977E43; border-radius: 2px; flex: none;\">\u003C/div>\n\u003Cp>\u003Cspan style=\"font-size: 14px; font-weight: bold; color: #28303e; margin-left: 8px; white-space: nowrap;\">42%\u003C/span>\n\u003C/div>\n\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd style=\"width: 40%; padding: 6px 12px 6px 0; font-size: 14px; color: #28303e; line-height: 1.3; border: none; vertical-align: middle;\">Team or firm-based incentive\u003C/td>\n\u003Ctd style=\"padding: 6px 0; border: none; vertical-align: middle;\">\n\u003Cdiv style=\"display: flex; align-items: center;\">\n\u003Cdiv style=\"width: 35.7%; height: 20px; background: #977E43; border-radius: 2px; flex: none;\">\u003C/div>\n\u003Cp>\u003Cspan style=\"font-size: 14px; font-weight: bold; color: #28303e; margin-left: 8px; white-space: nowrap;\">40%\u003C/span>\n\u003C/div>\n\u003C/td>\n\u003C/tr>\n\u003Ctr>\n\u003Ctd style=\"width: 40%; padding: 6px 12px 6px 0; font-size: 14px; color: #28303e; line-height: 1.3; border: none; vertical-align: middle;\">Profit sharing\u003C/td>\n\u003Ctd style=\"padding: 6px 0; border: none; vertical-align: middle;\">\n\u003Cdiv style=\"display: flex; align-items: center;\">\n\u003Cdiv style=\"width: 35.7%; height: 20px; background: #93ABBE; border-radius: 2px; flex: none;\">\u003C/div>\n\u003Cp>\u003Cspan style=\"font-size: 14px; font-weight: bold; color: #28303e; margin-left: 8px; white-space: nowrap;\">40%\u003C/span>\n\u003C/div>\n\u003C/td>\n\u003C/tr>\n\u003C/tbody>\n\u003C/table>\n\u003Cdiv style=\"margin: 14px 0 0 0; font-size: 13px; color: #4e4e50;\">\u003Cspan style=\"display: inline-block; margin: 0 16px 4px 0; white-space: nowrap;\">Metrics that could anchor LTIP eligibility\u003C/span>\u003Cspan style=\"display: inline-block; margin: 0 16px 4px 0; white-space: nowrap;\">Other components\u003C/span>\u003C/div>\n\u003Cdiv style=\"font-size: 12px; color: #4e4e50; margin: 10px 0 0 0; line-height: 1.4;\">Respondents could select more than one answer, so totals exceed 100%.\u003C/div>\n\u003Cdiv style=\"font-size: 12px; color: #4e4e50; margin: 10px 0 0 0; line-height: 1.4;\">Source: Advisor Growth Strategies, 2026 Compensation Trends Survey (n=51).\u003C/div>\n\u003C/figure>\n\u003Cp style=\"margin: .5em 0;\">For many firms, the metrics that could anchor LTIP eligibility are already being tracked for the annual bonus. The long-term plan simply hasn’t been connected to them.\u003C/p>\n\u003Ch2 style=\"margin: .6em 0 0 0;\">Clear Criteria Turn a Retention Tool Into a Path to Ownership\u003C/h2>\n\u003Cp style=\"margin: .5em 0;\">Connecting the two does not require a new system. Firms that already pay for originated relationships, business development, and team results can use those same measures, along with tenure and leadership responsibilities, to define who becomes eligible for a long-term award and what it takes to get there. Written criteria give participants a target they can work toward, and they give the firm a defined path from incentive plan participant to partner. That path matters more as valuations rise and equity becomes harder to transition in large blocks. Among surveyed firms where the largest shareholder owns less than 30% of the business, 71% added new partners in the past year.\u003C/p>\n\u003Cp style=\"margin: .5em 0;\">As \u003Ca href=\"https://www.advisorgrowthllc.com/team/brandon-kawal\">Brandon Kawal\u003C/a> notes: “Talent is driving acquisitions, equitization is no longer optional, and buyers are focused on long-term incentive alignment.”\u003C/p>\n\u003Cp style=\"margin: .5em 0;\">If your firm is weighing changes to compensation, incentives, or ownership, we welcome the conversation. \u003Ca href=\"https://www.advisorgrowthllc.com/contact-us\">Contact the team to schedule a call.\u003C/a>\u003C/p>\n",{"label":13,"aria":13,"file_type":13,"href":13,"file":37},{"src":13,"alt":13},{"self":64,"collection":70,"about":73,"wp:attachment":76,"wp:term":79,"curies":90},[65],{"href":66,"targetHints":67},"https://api2.advisorgrowthllc.com/wp-json/wp/v2/the-wire/2864",{"allow":68},[69],"GET",[71],{"href":72},"https://api2.advisorgrowthllc.com/wp-json/wp/v2/the-wire",[74],{"href":75},"https://api2.advisorgrowthllc.com/wp-json/wp/v2/types/the-wire",[77],{"href":78},"https://api2.advisorgrowthllc.com/wp-json/wp/v2/media?parent=2864",[80,84,87],{"taxonomy":81,"embeddable":82,"href":83},"the-wire-categories",true,"https://api2.advisorgrowthllc.com/wp-json/wp/v2/the-wire-categories?post=2864",{"taxonomy":85,"embeddable":82,"href":86},"the-wire-archive-categories","https://api2.advisorgrowthllc.com/wp-json/wp/v2/the-wire-archive-categories?post=2864",{"taxonomy":88,"embeddable":82,"href":89},"thought-leadership-categories","https://api2.advisorgrowthllc.com/wp-json/wp/v2/thought-leadership-categories?post=2864",[91],{"name":92,"href":93,"templated":82},"wp","https://api.w.org/{rel}",{"wp:term":95},[96,97,98],[],[],[99],{"id":41,"link":100,"name":101,"slug":102,"taxonomy":88,"acf":103,"_links":104},"https://api2.advisorgrowthllc.com/thought-leadership-categories/compensation-and-equity-planning/","Compensation and Equity Planning","compensation-and-equity-planning",[],{"self":105,"collection":110,"about":113,"wp:post_type":116,"curies":119},[106],{"href":107,"targetHints":108},"https://api2.advisorgrowthllc.com/wp-json/wp/v2/thought-leadership-categories/21",{"allow":109},[69],[111],{"href":112},"https://api2.advisorgrowthllc.com/wp-json/wp/v2/thought-leadership-categories",[114],{"href":115},"https://api2.advisorgrowthllc.com/wp-json/wp/v2/taxonomies/thought-leadership-categories",[117],{"href":118},"https://api2.advisorgrowthllc.com/wp-json/wp/v2/the-wire?thought-leadership-categories=21",[120],{"name":92,"href":93,"templated":82},1794247224919]