Merrill Adjusts Advisor Bonus Incentives for 2027
The firm is raising asset thresholds and introducing new awards to drive client growth and banking product adoption.
Updated on Oct. 22, 2026 in Financial Planning
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Merrill announced updated advisor compensation policies for 2027, including higher minimum strategic asset requirements for its Growth Award. These changes are designed to focus advisor activity on acquiring new client households and expanding banking product usage.
Why it matters
The firm adjusts these incentives annually to align advisor behavior with long-term strategy, such as capturing new client assets and lending growth. This ensures that compensation remains tied to performance metrics that the bank identifies as core business drivers.
The firm is increasing the Growth Award minimum to $7.5 million, up from $5 million, and requiring four new household credits instead of three. The new Lending Growth Award pays 10 basis points on $10 million in loans and 20 basis points on $25 million.
The players
Merrill
A wealth management division of Bank of America that provides investment, banking, and lending services to clients.
Wells Fargo
A major American financial services company that is expected to announce its own compensation policies this month.
The details
Merrill is replacing its existing elite award with three new tiers focused on net inflows, bank deposits, and loans. Advisors will continue to receive a 12 basis point payout on up to $50 million in strategic flows under the updated structure.
Timeline
Merrill introduced its current growth awards in 2024.
The firm reported a 9% year-over-year increase in client balances in Q3 2026.
Merrill announced the 2027 compensation strategy in October 2026.
New advisor bonus incentive policies take effect in 2027.
Market Dynamics
These compensation shifts mirror broader trends among wirehouses to transition advisors from pure investment management to comprehensive financial relationship models. By rewarding lending and deposit growth, Merrill is reinforcing its status as a full-service banking entity rather than a brokerage.
For retail clients, these changes suggest a push for advisors to offer more integrated lending and banking services alongside investment advice. Investors may notice their advisors focusing more on household-level planning and integrated bank products as these metrics drive the firm's payout structure.
The takeaway
Advisors are being nudged toward deeper client relationships that include banking and credit products to qualify for higher tiers. Clients should be prepared for their financial advisors to increasingly discuss loans and deposit accounts as part of their standard wealth management reviews.
Further reading
Learn more about evolving industry pay standards in the Financial Planning section.
Source note: This article includes information reported by Financial Planning.
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