Edward Jones Pays “Profits Interests” to Over 2,200 Advisors

Edward Jones granted profits interests to 2,275 of its financial advisors to keep top producers and attract experienced personnel, according to a Form-D filing with the Securities and Exchange Commission earlier this month.

The firm issued “profits interests” to advisors at the start of the year “who met performance, tenure and other eligibility criteria,” according to a January 5 filing, as it “seeks to recognize and retain highly successful current financial advisors and to attract experienced financial advisors in the industry to Edward Jones.”

The profits interests were awarded to just under 12% of the firm’s advisor head count, according to a separate filing last week. According to the firm’s most recent quarterly report, it had 19,009 advisors at the end of September 2023.

The earnings interest initiative was first announced in an August SEC filing, and additional details were provided in subsequent filings. The program gives eligible advisors an ownership stake in the firm’s future profits without requiring a cash investment.

The program’s eligibility is determined by an advisor’s program fee, assets under care, and the advisor’s customers’ advance balances in Edward Jones’ reserve line of credit. Tenure and performance are also considered.