Equity offerings are being viewed as a crucial differentiator in a competitive market when it comes to adviser recruitment.
Kaizen’s 2026 Wealth Management Salary Guide revealed adviser candidates are increasingly calling for equity offerings from employers but this isn’t something that is frequently offered by employers.
Speaking to Money Management on the findings, Kaizen managing director Matt McGilton, said the option was becoming a key differentiator for candidates when considering which firm to join.
“We are in this amazing situation where demand is exceeding supply and therefore organisations have to be really innovative in how they attract advisers.
“When you step back, you are asking the person to join and for them to bring a book of clients across who can generate revenue. Why would they do that unless they can have a stake in that, especially when the environment is so competitive at the moment?
“The smarter firms are thinking about this, they are getting serious about their equity offerings whether that’s via an equity buy-in or a profit share. That’s becoming a differentiator and why candidates are joining certain firms.”
He said he understood the option was still uncommon and may be unattractive for established firms where the founders have spent a long time building the brand but was necessary for newer firms.
“If you’ve only set up the firm up lately then it has to seriously be a consideration.”
From the candidate’s perspective, joining a smaller or newer advice firm would also likely bring on additional responsibilities around running a business which they believe should come with additional reward.
“When you join a small firm, it’s not just giving advice, you have to help them with the running of the business. It’s a mental shift to run a business and not everyone is cut out for this, they have to be really commercially minded.”
One advice firm that has been offering equity participation as a key tenet of its business for a number of years is Prime Financial Group. With all team members eligible to participate after 12 months, managing director Simon Madder said 80 per cent of its Australian-based staff have an equity stake.
Shares in the firm, which listed on the ASX in 2004, have risen by 150 per cent over the past five years versus gains by the ASX 200 of 30 per cent over the same period.
“This is something we feel really passionate about,” Madder told Money Management. “Equity shouldn’t only be reserved for senior staff. It doesn’t reduce their base remuneration, it is an additional layer on top of that and it is definitely a key consideration when people look to join.
“Alignment is essential in creating an environment where people can grow. If you create that ownership culture that then drives better client service and better performance.”
As well as for advisers, McGilton said equity participation is also sought-after from business development managers (BDMs), especially within the private credit asset class which has been a spike in popularity among investors. Hiring firms are seeking distribution talent in the wholesale BDM space who can demonstrate deep networks with platforms and research houses, a strong track record of capital raising and private markets experience.
With the asset class being more technical than others such as equities and bonds, BDMs in this space tend to be experienced professionals who are knowledgeable about the sector.
“We are also seeing the desire for equity participation from BDMs,” he told Money Management. “They want to have skin in the game.”
