How We Compensate Our Investment Professionals

ARCHIVED 2024-04-03, DATE APPROXIMATE · VERSION 20240403_rev01 · COMPARED WITH 20231006_rev01

Full text changes — 20231006_rev01 to 20240403_rev01

COLOUR MARKS THE SEVERITY OF A FLAGGED CLAUSE · + AND − MARK ADDED AND REMOVED

 Since Charles Schwab & Co., Inc. ("Schwab") was founded more than 40 years ago, we've been committed to serving the needs of individual investors. One of our most important beliefs is that you should understand how the financial professionals assisting you are paid, so you can evaluate the recommendations you receive.
 In these pages, we identify the different categories of investment professionals who may serve you at Schwab and describe how they are compensated. This includes both Schwab employees and independent branch franchisees (and their employees) operating Schwab Independent Branches. Compensation for investment professionals who provide recommendations is designed to support the provision of advice in the client's best interest.
 Please note that the information below describes how Schwab pays employee professionals and shares revenue with Independent Branch professionals, not how you pay Schwab for the services you receive. Information about what you pay Schwab for the services we provide can be found at [schwab.com/pricing](https://www.schwab.com/public/schwab/investing/pricing_services/fees_minimums).
+These pages summarize our compensation plans and incorporate all recent changes in effect as of October 1, 2023.
+These pages summarize our compensation plans and incorporate all recent changes in effect as of April 1, 2024.
 These pages are accurate as of the date indicated above. The most recent information is available at [schwab.com/compensationdisclosure](https://www.schwab.com/compensationdisclosure).
 We invite you to read this information carefully and to contact us at **800-435-4000** if you have any questions. (For multilingual services, call **800-662-6068**. For services outside the U.S., call **+1-415-667-8400**.)
 ## Types of investment professionals
+<table><colgroup><col> <col></colgroup><tbody><tr><td tabindex="0">1.&nbsp;<a href="#panel--text-171641" title="U.S. Branch Representatives" tabindex="-1">U.S. Branch Representatives</a></td><td tabindex="0"><ul><li>VP-Financial Consultants</li><li>Investment Consultants</li><li>Client Relationship Specialists</li><li>Financial Consultant Partners</li><li>VP-Assistant Branch Managers</li><li>VP-Branch Managers&nbsp;</li></ul></td></tr><tr><td tabindex="0">2.&nbsp;<a href="#panel--text-171766" title="International Branch Representatives" tabindex="-1">International Branch Representatives</a></td><td tabindex="0"><ul><li>International VP-Financial Consultants</li><li>International Assistant Branch Managers</li><li>International Branch Managers</li></ul></td></tr><tr><td tabindex="0">3.&nbsp;<a href="#panel--text-171791" title="Service Representatives" tabindex="-1">Service Representatives</a></td><td tabindex="0"><ul><li>Customer Service and Brokerage Service Representatives&nbsp;<br></li></ul></td></tr><tr><td tabindex="0">4.&nbsp;<a href="#panel--text-171821" title="Specialty Representatives" tabindex="-1">Specialty Representatives</a></td><td tabindex="0"><ul><li>New Client Investment Consultants</li><li>Investor Development Consultants&nbsp;</li><li>Financial Consultants (Financial Solutions Branch)&nbsp;</li><li>Branch Managers (Financial Solutions Branch)&nbsp;</li><li>Financial Consultants (Participant Investor Concierge)&nbsp;</li><li>VP-Senior Wealth Consultants&nbsp;</li><li>Wealth Consultant Partners&nbsp;</li><li>VP-Corporate Financial Consultants&nbsp;</li><li>VP-Senior Client Consultants</li><li>Advice Consultants&nbsp;</li><li>Trader Sales Representatives&nbsp;</li><li>Fixed Income Specialists&nbsp;</li><li>Regional Annuity Specialists (Annuity Specialists)&nbsp;</li><li>Regional Banking Managers&nbsp;</li><li>Portfolio Solutions Group Investment Consultants&nbsp;</li><li>Financial Planning Specialists&nbsp;</li></ul></td></tr><tr><td tabindex="0">5.&nbsp;<a href="#panel--text-171836" title="Schwab Independent Branch Services Representatives" tabindex="-1">Schwab Independent Branch Services Representatives</a></td><td tabindex="0"><ul><li>Independent Branch Leaders</li><li>IB Representatives&nbsp;&nbsp;</li></ul></td></tr></tbody></table>
+<table><colgroup><col> <col></colgroup><tbody><tr><td tabindex="0">1.&nbsp;<a href="#panel--text-171641" title="U.S. Branch Representatives" tabindex="-1">U.S. Branch Representatives</a></td><td tabindex="0"><ul><li>VP-Financial Consultants</li><li>Investment Consultants</li><li>Client Relationship Specialists</li><li>Financial Consultant Partners</li><li>VP-Assistant Branch Managers</li><li>VP-Branch Managers&nbsp;</li></ul></td></tr><tr><td tabindex="0">2.&nbsp;<a href="#panel--text-171766" title="International Branch Representatives" tabindex="-1">International Branch Representatives</a></td><td tabindex="0"><ul><li>International VP-Financial Consultants</li><li>International Assistant Branch Managers</li><li>International Branch Managers</li></ul></td></tr><tr><td tabindex="0">3.&nbsp;<a href="#panel--text-171791" title="Service Representatives" tabindex="-1">Service Representatives</a></td><td tabindex="0"><ul><li>Customer Service and Brokerage Service Representatives&nbsp;<br></li></ul></td></tr><tr><td tabindex="0">4.&nbsp;<a href="#panel--text-171821" title="Specialty Representatives" tabindex="-1">Specialty Representatives</a></td><td tabindex="0"><ul><li>New Client Investment Consultants</li><li>Investor Development Consultants</li><li>Financial Consultants (Financial Solutions Branch)</li><li>Branch Managers (Financial Solutions Branch)</li><li>Financial Consultants (Participant Investor Concierge)</li><li>VP-Senior Wealth Consultants</li><li>Wealth Consultant Partners</li><li>Director-Schwab Private Wealth Services</li><li>VP-Corporate Financial Consultants&nbsp;</li><li>VP-Senior Client Consultants</li><li>Advice Consultants</li><li>Trader Sales Representatives&nbsp;</li><li>Fixed Income Specialists&nbsp;</li><li>Regional Annuity Specialists (Annuity Specialists)&nbsp;</li><li>Regional Banking Managers&nbsp;</li><li>Portfolio Solutions Group Investment Consultants&nbsp;</li><li>Financial Planning Specialists</li><li>Tax, Trust &amp; Estate Specialists</li><li>Equity Compensations Specialists</li><li>Portfolio Transition Specialists&nbsp;&nbsp;<br></li></ul></td></tr><tr><td tabindex="0">5.&nbsp;<a href="#panel--text-171836" title="Schwab Independent Branch Services Representatives" tabindex="-1">Schwab Independent Branch Services Representatives</a></td><td tabindex="0"><ul><li>Independent Branch Leaders</li><li>IB Representatives&nbsp;&nbsp;</li></ul></td></tr><tr><td tabindex="0">6. <a href="#panel--text-208536" id="tablelink-1709765296920">Schwab Wealth Advisory, Inc.</a></td><td tabindex="0"></td></tr></tbody></table>
 If you have questions about information contained in this section, please call **800-435-4000**. For media inquiries, please call the Schwab Corporate Public Relations hotline at **415-667-9500**.
 Third-party trademarks are the property of their respective owners.
 Please note that the information in this section does not apply to Schwab accounts managed by an independent investment advisor. Independent investment advisors are not owned by, affiliated with, or supervised by Charles Schwab & Co., Inc. ("Schwab").
 Solutions Pay compensates a Financial Consultant for attracting new clients and assets to Schwab and recommending appropriate products and portfolio management services. It is a one-time payment and applies whether a Financial Consultant recommends a product or service or the client makes the purchase or enrollment decision on his or her own. The exceptions are for Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium™, which the Financial Consultant must recommend, and into which the client must enroll in order for the Financial Consultant to receive Solutions Pay.
 Category 1, asset consolidation, pays the same rate no matter what investment product a Financial Consultant might recommend or a client might purchase on his or her own. Category 2, which includes most portfolio management services (except for Wasmer Schroeder™ Ultra Short Strategies and Wasmer Schroeder™ Treasury Bond Ladder Strategies), pays the same rate no matter which service a Financial Consultant might recommend. The different rates paid between Category 1 and Category 2 are based on the additional time, complexity, and expertise necessary to assess a client's needs and recommend our portfolio management services. Category 3, other products, includes activities in which a Financial Consultant is not providing investment advice. Generally, if assets leave a Financial Consultant's practice, that loss is netted against asset gains to a Financial Consultant's practice for purposes of calculating Solutions Pay.
 Solutions Pay is paid to the Financial Consultant monthly.
+<table><colgroup><col> <col> <col></colgroup><tbody><tr><td tabindex="0"><strong>Category 1&nbsp;</strong><p><strong>Asset Consolidation</strong></p></td><td tabindex="0"><strong>Category 1&nbsp;</strong><p><strong>Financial Consultant's Compensation<sup>1</sup></strong></p></td><td tabindex="0"><strong>Category 1&nbsp;</strong><p><strong>One-Time Solutions Payment</strong></p></td></tr><tr><td tabindex="0">Net Asset Flows (total inflow of client assets minus the total outflow of client assets)</td><td tabindex="0">0.0008 x Net Asset Flows</td><td tabindex="0">$80 per $100,000 of Client Balances</td></tr><tr><td tabindex="0"><strong>Category 2</strong>&nbsp;<p><strong>Portfolio Management Services*&nbsp;</strong></p></td><td tabindex="0"><strong>Category 2</strong>&nbsp;<p><strong>Financial Consultant's Compensation<sup>1</sup></strong></p></td><td tabindex="0"><strong>Category 2</strong>&nbsp;<p><strong>One-Time Solutions Payment</strong></p></td></tr><tr><td tabindex="0"><ul><li>Schwab Wealth Advisory™&nbsp;</li><li>Schwab Intelligent Portfolios®&nbsp;</li><li>Schwab Intelligent Portfolios Premium™&nbsp;</li><li>Schwab Advisor Network®&nbsp;</li><li>Schwab Personal Trust-Full Corporate Trustee&nbsp;</li><li>Schwab Managed Portfolios™&nbsp;</li><li>Schwab Managed Account Services™ (which includes ThomasPartners® Strategies, Windhaven® Strategies, Wasmer Schroeder™ Fixed Income Strategies, Wasmer Schroeder Municipal Bond Ladder Strategies, Wasmer Schroeder Taxable Bond Ladder Strategies, Charles Schwab Investment Management Separately Managed Accounts, Diversified Portfolios, Third-Party Managers, and Schwab Personalized Indexing™)&nbsp;</li><li>USAA Managed Portfolios®</li></ul></td><td tabindex="0">0.002 x amount enrolled&nbsp;</td><td tabindex="0">$200 per $100,000 of Client Balances</td></tr><tr><td tabindex="0">Annuities by a Financial Consultant with an active insurance license</td><td tabindex="0">0.002 x annuity amount&nbsp;</td><td tabindex="0">$200 per $100,000 of Client Balances</td></tr><tr><td tabindex="0"><strong>Category 3&nbsp;</strong><p><strong>Other Products</strong></p></td><td tabindex="0"><strong>Category 3&nbsp;</strong><p><strong>Financial Consultant's Compensation<sup>1</sup></strong></p></td><td tabindex="0"><strong>Category 3</strong><p><strong>One-Time Solutions Payment&nbsp;</strong><br></p></td></tr><tr><td tabindex="0">Introductions to Charles Schwab Bank, SSB for mortgages by Financial Consultants who are also employees of Charles Schwab Bank, SSB</td><td tabindex="0">0.002 × loan amount for new mortgages;&nbsp;<p>0.0011 × loan amount for refinanced loans&nbsp;</p></td><td tabindex="0">$200 per $100,000 of loan amount&nbsp;<p>$110 per $100,000 of loan amount</p></td></tr><tr><td tabindex="0">Schwab Personal Trust - Successor Trustee&nbsp;</td><td tabindex="0">$175 per household designation&nbsp;</td><td tabindex="0">$175&nbsp;</td></tr><tr><td tabindex="0">Referrals to a Schwab Charitable™ donor-advised fund<sup>2</sup></td><td tabindex="0">$175 per converted referral for new accounts over $25,000</td><td tabindex="0">$175&nbsp;</td></tr><tr><td tabindex="0">Referrals to Life Insurance by a Financial Consultant with an active insurance license</td><td tabindex="0">$450 per converted referral&nbsp;</td><td tabindex="0">$450&nbsp;</td></tr><tr><td tabindex="0">Referrals to Long-Term Care Insurance by a Financial Consultant with an active insurance license</td><td tabindex="0">$450 per converted referral</td><td tabindex="0">$450</td></tr><tr><td tabindex="0">Referrals to Schwab Advisor Services™&nbsp;</td><td tabindex="0">$800 for referrals up to $30 million;&nbsp;<p>$3,500 for referrals of $30+ million&nbsp;</p></td><td tabindex="0">$800 or $3,500</td></tr><tr><td tabindex="0">Referrals to Schwab Retirement Plan Services or Retirement Business Services&nbsp;</td><td tabindex="0">0.002 × amount of assets referred;&nbsp;<p>$250,000 minimum asset level to $10,000,000 maximum asset level&nbsp;&nbsp;</p></td><td tabindex="0">$500 for a $250,000 referral</td></tr></tbody></table>
+<table><colgroup><col> <col> <col></colgroup><tbody><tr><td tabindex="0"><strong>Category 1&nbsp;</strong><p><strong>Asset Consolidation</strong></p></td><td tabindex="0"><strong>Category 1&nbsp;</strong><p><strong>Financial Consultant's Compensation<sup>1</sup></strong></p></td><td tabindex="0"><strong>Category 1&nbsp;</strong><p><strong>One-Time Solutions Payment</strong></p></td></tr><tr><td tabindex="0">Net Asset Flows (total inflow of client assets minus the total outflow of client assets)</td><td tabindex="0">0.0008 x Net Asset Flows</td><td tabindex="0">$80 per $100,000 of Client Balances</td></tr><tr><td tabindex="0"><strong>Category 2</strong>&nbsp;<p><strong>Portfolio Management Services*&nbsp;</strong></p></td><td tabindex="0"><strong>Category 2</strong>&nbsp;<p><strong>Financial Consultant's Compensation<sup>1</sup></strong></p></td><td tabindex="0"><strong>Category 2</strong>&nbsp;<p><strong>One-Time Solutions Payment</strong></p></td></tr><tr><td tabindex="0"><ul><li>Schwab Wealth Advisory™&nbsp;</li><li>Schwab Intelligent Portfolios®&nbsp;</li><li>Schwab Intelligent Portfolios Premium™&nbsp;</li><li>Schwab Advisor Network®&nbsp;</li><li>Schwab Personal Trust-Full Corporate Trustee&nbsp;</li><li>Schwab Managed Portfolios™&nbsp;</li><li>Schwab Managed Account Services™ (which includes ThomasPartners® Strategies, Windhaven® Strategies, Wasmer Schroeder™ Fixed Income Strategies, Wasmer Schroeder Municipal Bond Ladder Strategies, Wasmer Schroeder Taxable Bond Ladder Strategies, Charles Schwab Investment Management Separately Managed Accounts, Diversified Portfolios, Third-Party Managers, and Schwab Personalized Indexing™)&nbsp;</li><li>USAA Managed Portfolios®</li></ul></td><td tabindex="0">0.002 x amount enrolled&nbsp;</td><td tabindex="0">$200 per $100,000 of Client Balances</td></tr><tr><td tabindex="0">Annuities by a Financial Consultant with an active insurance license</td><td tabindex="0">0.002 x annuity amount&nbsp;</td><td tabindex="0">$200 per $100,000 of Client Balances</td></tr><tr><td tabindex="0"><strong>Category 3&nbsp;</strong><p><strong>Other Products</strong></p></td><td tabindex="0"><strong>Category 3&nbsp;</strong><p><strong>Financial Consultant's Compensation<sup>1</sup></strong></p></td><td tabindex="0"><strong>Category 3</strong><p><strong>One-Time Solutions Payment&nbsp;</strong><br></p></td></tr><tr><td tabindex="0">Introductions to Charles Schwab Bank, SSB for mortgages by Financial Consultants who are also employees of Charles Schwab Bank, SSB</td><td tabindex="0">0.002 × loan amount for new mortgages;&nbsp;<p>0.0011 × loan amount for refinanced loans&nbsp;</p></td><td tabindex="0">$200 per $100,000 of loan amount&nbsp;<p>$110 per $100,000 of loan amount</p></td></tr><tr><td tabindex="0">Referrals to Schwab Bank Pledged Asset Line® (PAL)&nbsp;&nbsp;</td><td tabindex="0">$120 per opened account&nbsp;</td><td tabindex="0">$120</td></tr><tr><td tabindex="0">Schwab Personal Trust - Successor Trustee&nbsp;</td><td tabindex="0">$175 per household designation&nbsp;</td><td tabindex="0">$175&nbsp;</td></tr><tr><td tabindex="0">Referrals to a Schwab Charitable™ donor-advised fund<sup>2</sup></td><td tabindex="0">$175 per converted referral for new accounts over $25,000</td><td tabindex="0">$175&nbsp;</td></tr><tr><td tabindex="0">Referrals to Life Insurance by a Financial Consultant with an active insurance license</td><td tabindex="0">$450 per converted referral&nbsp;</td><td tabindex="0">$450&nbsp;</td></tr><tr><td tabindex="0">Referrals to Long-Term Care Insurance by a Financial Consultant with an active insurance license</td><td tabindex="0">$450 per converted referral</td><td tabindex="0">$450</td></tr><tr><td tabindex="0">Referrals to Schwab Advisor Services™&nbsp;</td><td tabindex="0">$800 for referrals up to $30 million;&nbsp;<p>$3,500 for referrals of $30+ million&nbsp;</p></td><td tabindex="0">$800 or $3,500</td></tr><tr><td tabindex="0">Referrals to Schwab Retirement Plan Services or Retirement Business Services&nbsp;</td><td tabindex="0">0.002 × amount of assets referred;&nbsp;<p>$250,000 minimum asset level to $10,000,000 maximum asset level&nbsp;&nbsp;</p></td><td tabindex="0">$500 for a $250,000 referral</td></tr></tbody></table>
 \*Excludes Wasmer Schroeder™ Ultra Short Strategies and Wasmer Schroeder™ Treasury Bond Ladder Strategies.
 \. Schwab may cap the amount of incentive compensation that a Financial Consultant can earn from any one client from the Solutions Pay component.
 \. Schwab Charitable is the name used for the combined programs and services of Schwab Charitable Fund™, an independent nonprofit organization. Schwab Charitable Fund has entered into service agreements with certain affiliates of The Charles Schwab Corporation.
 <table><colgroup><col> <col> <col></colgroup><tbody><tr><td tabindex="0"><strong>Payment type&nbsp;</strong></td><td tabindex="0"><strong>Description</strong></td><td tabindex="0"><strong>Compensation amount&nbsp;</strong></td></tr><tr><td tabindex="0">Solutions Pay (one-time payments)</td><td tabindex="0">$500,000 transfer into Schwab&nbsp;&nbsp;</td><td tabindex="0">$400&nbsp;&nbsp;</td></tr><tr><td tabindex="0">Solutions Pay (one-time payments)</td><td tabindex="0">$200,000 enrollment into Schwab Wealth Advisory™</td><td tabindex="0">$400&nbsp;&nbsp;</td></tr><tr><td tabindex="0">Relationship Pay (annual payments)</td><td tabindex="0">$200,000 balance in Schwab Wealth Advisory™</td><td tabindex="0">$56.00 - $90.00</td></tr><tr><td tabindex="0">Relationship Pay (annual payments)</td><td tabindex="0">$100,000 balance in Mutual Funds</td><td tabindex="0">$7.70 - $12.60</td></tr><tr><td tabindex="0">Relationship Pay (annual payments)</td><td tabindex="0">$100,000 balance in Cash</td><td tabindex="0">$7.70 - $12.60</td></tr><tr><td tabindex="0">Relationship Pay (annual payments)</td><td tabindex="0">$100,000 balance in ETFs</td><td tabindex="0">$7.70 - $12.60</td></tr><tr><td tabindex="0">TOTAL</td><td tabindex="0"></td><td tabindex="0">$879.10 - $927.80</td></tr></tbody></table>
 ## Investment Consultants
 | What they do | Compensation |
 | --- | --- |
+| Investment Consultants assist clients in our branch offices. They meet with clients who are not assigned to a Financial Consultant's practice as well as with potential new clients to identify and analyze their financial needs. | In addition to a base salary, Investment Consultants are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of service quality, client satisfaction, teamwork, and the provision of education and recommendations to our clients. |
+| Investment Consultants assist and meet with clients who are not assigned to a Financial Consultant's practice as well as with potential new clients to identify and analyze their financial needs. | In addition to a base salary, Investment Consultants are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of service quality, client satisfaction, teamwork, and the provision of education and recommendations to our clients. |
 ## Client Relationship Specialists
 | What they do | Compensation |
 | --- | --- |
 | Client Relationship Specialists respond to the specific needs of clients and may direct clients to the appropriate Schwab representative. | In addition to a base salary, Client Relationship Specialists are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of service quality, client satisfaction, sales support, and teamwork. |
 ## VP-Branch Managers
 | What they do | Compensation |
 | --- | --- |
 | VP-Branch Managers lead a local market team composed of Financial Consultants, Investment Consultants, Financial Consultant Partners, Client Relationship Staff, and various internal and external partners. They provide local strategic direction and execution support, and they recruit and manage the local team. They are responsible for the performance of their branch. | In addition to a base salary, Branch Managers are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of branch growth and productivity, client satisfaction, and development of staff. A Branch Manager's bonus can be a significant amount, typically, but not limited to, approximately 45% of their total compensation. |
+Additionally, our U.S. Branch Representatives may be eligible for a discretionary incentive based on Client Net New Assets.
 ## 2\. International Branch Representatives
 ## International VP-Financial Consultants
 | What they do | Compensation |
 | --- | --- |
 ## Wealth Consultant Partners
 | What they do | Compensation |
 | --- | --- |
 | Wealth Consultant Partners respond to the specific needs of clients and are assigned to specific Schwab representatives. | In addition to a base salary, Wealth Consultant Partners are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of service quality, client satisfaction, sales support, and teamwork. |
+## Director - Schwab Private Wealth Services
+| What they do | Compensation |
+| --- | --- |
+| Director- Schwab Private Wealth Services is a business development role. They are responsible for prospecting, qualifying, and closing new SPWS accounts to Schwab. They serve as a resource and subject matter expert on SPWS and the specific needs of UHNW clients. | In addition to a base salary, Directors - Schwab Private Wealth Services have the potential to earn additional incentive compensation based on Net New Assets brought to Schwab. |
 ## VP-Corporate Financial Consultants
 | What they do | Compensation |
 | --- | --- |
 | VP-Corporate Financial Consultants provide dedicated in-person relationships to employees of select corporate partners. They develop new and existing client relationships, taking a planning-based approach to understand a client's needs and objectives. They provide education and recommendations to help clients select the products that help meet their objectives. | In addition to a base salary, Corporate Financial Consultants are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of client satisfaction, service, quality of financial plans delivered, feedback from the corporate client, and retention of plan assets. |
 ## Regional Banking Managers
 | What they do | Compensation |
 | --- | --- |
 | As Charles Schwab Bank, SSB employees, Regional Banking Managers provide Financial Consultants and clients with information about bank lending products. They also provide existing clients with ongoing service. | In addition to a base salary, Regional Banking Managers are eligible to earn quarterly bonuses that are determined based on the sales of bank lending products, including PAL, First Mortgage, and HELOC. |
+## Portfolio Solutions Group Investment Consultants
+## Portfolio Solutions Consultants
 | What They Do | Compensation |
 | --- | --- |
+| Portfolio Solutions Group Investment Consultants are an ongoing resource for clients who are not currently assigned to a Financial Consultant and are invested in Schwab Managed Portfolios™, ThomasPartners® Strategies, Windhaven® Strategies, USAA Managed Portfolios® or a focused set of Wasmer Schroeder™ or Managed Account Select® strategies. The Investment Consultants are available to provide portfolio analysis, retirement planning, and advice regarding other wealth management topics. As part of any client conversation, the Investment Consultants ensure ongoing suitability of investments and make recommendations from a variety of investment products offered at Schwab. | In addition to a base salary, these representatives are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of the quality of the representative's interactions with clients, client satisfaction, teamwork, training, professional development, and accuracy. |
+| Portfolio Solutions Consultants are an ongoing resource for clients who are not currently assigned to a Financial Consultant and are invested in most Schwab managed solutions. The Portfolio Solutions Consultants are available to provide portfolio analysis, retirement planning, and advice regarding other wealth management topics. As part of any client conversation, the Portfolio Solutions Consultants ensure ongoing suitability of investments and make recommendations from a variety of investment products offered at Schwab. | In addition to a base salary, these representatives are eligible to earn an annual bonus that is funded based on Schwab's Retail Net New Assets performance and determined based on manager discretion, which may include consideration of the quality of the representative's interactions with clients, client satisfaction, teamwork, training, professional development, and accuracy. |
 ## Financial Planning Specialists
 Financial Planning Specialists
 | What They Do | Compensation |
 | --- | --- |
 | Financial Planning Specialists work with clients to create a financial plan and personalized wealth management strategy that addresses topics such as retirement planning, distribution and income strategies, education planning, risk management, and estate planning. | In addition to a base salary, these specialists are eligible to earn an annual bonus based on factors such as corporate and individual performance. |
+## Tax, Trust & Estate Specialists
+| What They Do | Compensation |
+| --- | --- |
+| Tax, Trust & Estate Specialists work with clients to provide personalized tax, trust & estate educational information that complements the client's overall wealth management strategy. | In addition to a base salary, Tax, Trust & Estate Specialists are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of client satisfaction, relationship management, quality assurance, teamwork, and partnership feedback. |
+## Equity Compensation Specialists
+| What They Do | CompensationCompensation |
+| --- | --- |
+| Equity Compensation Specialists assist clients and prospects with strategies to manage the value of their company stock and options more effectively. The consultation is highly customized and includes an action plan that considers general tax principles, risk management/diversification needs, target exercise prices, scenario management, and personal considerations. | In addition to a base salary, these specialists are eligible to earn an annual bonus based on factors such as corporate and individual performance. |
+## Portfolio Transition Specialists
+| What They Do | Compensation |
+| --- | --- |
+| Portfolio Transition Specialists are trusted partners to Financial Consultants, Wealth Consultants & Wealth Advisors, and their clients or prospects seeking to transition their existing investment holdings into other products or service while considering estimated potential tax liabilities. These transition analyses deliver actionable and customized portfolio strategies to drive better client outcomes. | In addition to a base salary, these specialists are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion. |
 ## 5\. Schwab Independent Branch Services Representatives
 Schwab Independent Branch Leaders (IBLs) are franchisees who operate Schwab Independent Branches pursuant to a franchise agreement with Schwab. IBLs may employ IB representatives (Financial Consultants, Associate Financial Consultants, and Client Service Specialists, who may or may not be registered).
 IB registered personnel are not Schwab employees, but they are registered representatives of Schwab for purposes of securities regulations. IBLs receive a portion of the revenue generated by the activities and assets in accounts of Schwab clients assigned to their independent branches. IB representatives also may share in the revenue earned by their IBL employer. Schwab notifies clients when they are assigned to an Independent Branch.
 ### Compensation
 IB Representatives are employees of the IBL. They receive a salary paid by the IBL and, as determined by the IBL as their employer, may be eligible for a bonus.
 The criteria used to determine the amount of the bonus may include such factors as Net New Assets, Branch Assets and Client Promoter Score. These criteria do not include recommendations of any specific product, offer, or service.
+## 6\. Schwab Wealth Advisory, Inc.
+All personnel who provide planning, portfolio advice, and service within Schwab Wealth Advisory™ ("SWA"), including all Wealth Advisors, Associate Wealth Advisors, Specialists and the SWA service team are **employed by Schwab Wealth Advisory, Inc., ("SWAI") a separate but affiliated Retail Investment Adviser**.
+**Schwab Wealth Advisory, Inc. employees do not receive differential compensation** based on what Schwab Wealth Advisory™ advice providers recommend to clients, nor is their compensation based on investment performance. In addition to a base salary, SWAI employees are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion.