How We Compensate Our Investment Professionals

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11[View this notice in PDF format](https://www.schwab.com/resource/how-we-compensate-our-investment-professionals)
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33Since 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.
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55In 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.
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7Certain representatives that drive net new assets to the firm during the year may also be eligible to earn an annual trip through Schwab Chairman's Club.
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79Please 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://schwab.com/pricing).
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9These pages summarize our compensation plans and incorporate all recent changes in effect as of July 1, 2024.
11These pages summarize our compensation plans and incorporate all recent changes in effect as of January 1, 2025.
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1113These pages are accurate as of the date indicated above. The most recent information is available at [schwab.com/compensationdisclosure](https://schwab.com/compensationdisclosure).
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1315We 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.)
1416
1517## Types of Investment Professionals
7173#### What They Do
7274
7375VP-Financial Consultants work with clients both in person (through our U.S. branch office locations) and by phone. They develop new and existing client relationships, generally using a planning-based approach to understand a client's needs and objectives. They provide education and recommendations to help clients select products-including investments, banking, and insurance-that meet client objectives. Each Financial Consultant supports a practice, which includes clients who are assigned to that Financial Consultant as a primary point of contact. Financial Consultants may also assist clients who are not in their practice.
7476
7577#### Compensation
7678
77Financial Consultants receive a base salary for serving clients. Depending on their professional experience and past work performance, some Financial Consultants also receive Relationship Pay. In addition, Financial Consultants receive Solutions Pay. Financial Consultants may also be eligible to participate in a Career Achievement Award Program, which rewards and retains our top talent for being dedicated to Schwab and our clients. Additionally, Financial Consultants may be eligible for a discretionary incentive based on Client Retention and Client Satisfaction.
79Financial Consultants receive a base salary for serving clients. Depending on their professional experience and past work performance, some Financial Consultants also receive Relationship Pay. In addition, Financial Consultants receive Solutions Pay. Financial Consultants may also be eligible to participate in a Career Achievement Award Program, which rewards and retains our top talent for being dedicated to Schwab and our clients.
7880
7981Financial Consultants may give financial planning and investment advice to some of their clients. Although Schwab as a company may earn more or less revenue depending on the investment product or portfolio management service a Financial Consultant recommends, we have designed their compensation based on the time, complexity, and expertise necessary to understand, recommend, and provide ongoing service to a client for different categories of investment products and portfolio management services. [Schwab.com/schwabcompensation](https://schwab.com/schwabcompensation) includes more information on how Schwab as a company earns revenue.
8082
8183#### Relationship Pay
8284
8385Relationship Pay compensates a Financial Consultant for maintaining relationships with and providing service to clients in their practice. Compensation is divided into three categories. The first two have different asset multiplier rates,\* which reflect the time, complexity, and expertise associated with recommending and servicing accounts in each category ("compensation factors"). Category 1 covers fee-based portfolio management services, and Category 2 covers portfolio management referrals and non-managed accounts. The asset multiplier rates change monthly based on fluctuations over time in assets and revenue associated with the products and services in Category 1 and Category 2.
8991As shown in the tables below, Financial Consultants receive more compensation for some products and services than others. Financial Consultants are eligible to receive 7%, 8%, or 9% of the amount resulting from application of the asset multiplier rate, depending on a Financial Consultant's professional experience and past work performance.
9092
9193The third category of Relationship Pay is for credit products.
9294
9395#### Relationship Pay Based on Account Balances
9496
95<table><tbody><tr><td><h4 name="H4_HEAD">Category&nbsp;1</h4><h5 name="H5_HEAD">Portfolio Management Services <span name="C_BookRegular">(typically have more involved ongoing service&nbsp;needs)</span></h5></td><td><h4 name="H4_HEAD">Category&nbsp;1</h4><h5 name="H5_HEAD">Annual Relationship Pay per $100,000 of Client&nbsp;Balances</h5></td></tr><tr><td><ul><li name="P_BULLET_12pt">Schwab Wealth Advisory™</li><li name="P_BULLET_12pt">Schwab Managed Portfolios™</li><li name="P_BULLET_12pt">Schwab Managed Account Services™ (which includes ThomasPartners<span name="C_SuperscriptR">®</span> Strategies, Windhaven<span name="C_SuperscriptR">®</span> 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&nbsp;Indexing™)</li><li name="P_BULLET_12pt">USAA Managed Portfolios<span name="C_SuperscriptR">®</span></li><li name="P_BULLET_12pt" spaceafter="0px">Annuities (for Financial Consultants with an active insurance&nbsp;license)</li></ul></td><td><p name="P_BODY">The asset multiplier rate used for Category&nbsp;1 could range between 40 and 50 basis points, which is multiplied by a Financial Consultant's particular payout&nbsp;rate.</p><p name="P_BODY">This results in a payment between:</p><p name="P_BODY">$28.00 (100,000 × .004 × .07) and<br>$35.00 (100,000 × .005 × .07),</p><p name="P_BODY">$32.00 (100,000 × .004 × .08), and<br>$40.00 (100,000 × .005 × .08) or</p><p name="P_BODY_END">$36.00 (100,000 × .004 × .09) and<br>$45.00 (100,000 × .005 × .09)</p></td></tr></tbody></table>
97<table><tbody><tr><td><h4 name="H4_HEAD">Category&nbsp;1</h4><h5 name="H5_HEAD">Portfolio Management Services <span name="C_BookRegular">(typically have more involved ongoing service&nbsp;needs)</span></h5></td><td><h4 name="H4_HEAD">Category&nbsp;1</h4><h5 name="H5_HEAD">Annual Relationship Pay per $100,000 of Client&nbsp;Balances</h5></td></tr><tr><td><ul><li name="P_BULLET_12pt">Schwab Wealth Advisory™</li><li name="P_BULLET_12pt">Schwab Managed Portfolios™</li><li name="P_BULLET_12pt">Schwab Managed Account Services™ (which includes ThomasPartners<span name="C_SuperscriptR">®</span> Strategies, Windhaven<span name="C_SuperscriptR">®</span> 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, Schwab Personalized Indexing™, and Selective Portfolios)</li><li name="P_BULLET_12pt">USAA Managed Portfolios<span name="C_SuperscriptR">®</span></li></ul></td><td><p name="P_BODY">The asset multiplier rate used for Category 1 could range between 32 and 42 basis points, which is multiplied by a Financial Consultant's particular payout rate.</p><p name="P_BODY">This results in a payment between:</p><p name="P_BODY">$22.40 (100,000 × .0032 × .07) and<br>$29.40 (100,000 × .0042 × .07),</p><p name="P_BODY">$25.60 (100,000 × .0032 × .08), and<br>$33.60 (100,000 × .0042 × .08) or</p><p name="P_BODY_END">$28.80 (100,000 × .0032 × .09) and<br>$37.80 (100,000 × .0042 × .09)</p></td></tr></tbody></table>
9698
97<table><tbody><tr><td><h4 name="H4_HEAD">Category&nbsp;2</h4><h5 name="H5_HEAD">Portfolio Management Referrals and Non-Managed Accounts&nbsp;<span name="C_BookRegular">(typically have less involved ongoing service&nbsp;needs)</span></h5></td><td><h4 name="H4_HEAD">Category&nbsp;2</h4><h5 name="H5_HEAD">Annual Relationship Pay per $100,000 of Client&nbsp;Balances</h5></td></tr><tr><td><ul><li name="P_BULLET_12pt">Schwab Advisor Network<span name="C_SuperscriptR">®</span></li><li name="P_BULLET_12pt">Schwab Intelligent Portfolios<span name="C_SuperscriptR">®</span></li><li name="P_BULLET_12pt">Schwab Intelligent Portfolios Premium<span name="C_SuperscriptR">®</span></li><li name="P_BULLET_12pt">Schwab Personal Trust</li><li name="P_BULLET_12pt">Wasmer Schroeder™ Ultra Short&nbsp;Strategies</li><li name="P_BULLET_12pt">Wasmer Schroeder™ Treasury Bond Ladder Strategies</li></ul><p name="P_BODY_END">Balances in self-directed or non-managed accounts are treated the same, regardless of whether the assets are in affiliated or third-party products or different share classes. The payout rate is the same for stocks, bonds, mutual funds, ETFs, cash (including Schwab Bank deposits), option positions, and 529&nbsp;accounts.</p></td><td><p name="P_BODY">The asset multiplier rate used for Category&nbsp;2 could range between 11 and 14 basis points, which is multiplied by a Financial Consultant's particular payout&nbsp;rate.</p><p name="P_BODY">This results in a payment between:</p><p name="P_BODY">$7.70 (100,000 × .0011 × .07) and<br>$9.80 (100,000 × .0014 × .07),</p><p name="P_BODY">$8.80 (100,000 × .0011 × .08) and<br>$11.20 (100,000 × .0014 × .08), or</p><p name="P_BODY_END">$9.90 (100,000 × .0011 × .09) and<br>$12.60 (100,000 × .0014 × .09)</p></td></tr></tbody></table>
99<table><tbody><tr><td><h4 name="H4_HEAD">Category&nbsp;2</h4><h5 name="H5_HEAD">Portfolio Management Referrals and Non-Managed Accounts&nbsp;<span name="C_BookRegular">(typically have less involved ongoing service&nbsp;needs)</span></h5></td><td><h4 name="H4_HEAD">Category&nbsp;2</h4><h5 name="H5_HEAD">Annual Relationship Pay per $100,000 of Client&nbsp;Balances</h5></td></tr><tr><td><ul><li name="P_BULLET_12pt">Schwab Advisor Network<span name="C_SuperscriptR">®</span></li><li name="P_BULLET_12pt">Schwab Intelligent Portfolios<span name="C_SuperscriptR">®</span></li><li name="P_BULLET_12pt">Schwab Intelligent Portfolios Premium<span name="C_SuperscriptR">®</span></li><li name="P_BULLET_12pt">Schwab Personal Trust</li><li name="P_BULLET_12pt">Annuities (for Financial Consultants with an active insurance license)*</li><li name="P_BULLET_12pt">Wasmer Schroeder™ Ultra Short&nbsp;Strategies</li><li name="P_BULLET_12pt">Wasmer Schroeder™ Treasury Bond Ladder Strategies</li></ul><p name="P_BODY_END">Balances in self-directed or non-managed accounts are treated the same, regardless of whether the assets are in affiliated or third-party products or different share classes. The payout rate is the same for stocks, bonds, mutual funds, ETFs, cash (including Schwab Bank deposits), option positions, and 529&nbsp;accounts.</p></td><td><p name="P_BODY">The asset multiplier rate used for Category 2 could range between 9 and 12 basis points, which is multiplied by a Financial Consultant's particular payout rate.</p><p name="P_BODY">This results in a payment between:</p><p name="P_BODY">$6.30 (100,000 × .0009 × .07) and<br>$8.40 (100,000 × .0012 × .07),</p><p name="P_BODY">$7.20 (100,000 × .0009 × .08) and<br>$9.60 (100,000 × .0012 × .08), or</p><p name="P_BODY_END">$8.10 (100,000 × .0009 × .09) and<br>$10.80 (100,000 × .0012 × .09)</p></td></tr></tbody></table>
98100
99101<table><tbody><tr><td><h4 name="H4_HEAD">Category&nbsp;3</h4><h5 name="H5_HEAD">Non-investment Advice Products and Activities</h5></td></tr><tr><td><h5 name="H5_HEAD">Credit Products:</h5><ul><li name="P_BULLET_12pt">Margin Loans</li><li name="P_BULLET_12pt">Schwab Bank Home Equity Line of Credit (HELOC)</li><li name="P_BULLET_12pt">Schwab Bank Pledged Asset Line<span name="C_SuperscriptR">®</span> (PAL)</li></ul><p name="P_BODY_END">Financial Consultants receive a payment of 4.4 basis points per $100,000 of client loan balance. This results in a payment of $44 per $100,000 loan ($100,000 × .00044).</p></td></tr></tbody></table>
100102
101103When a client in a Financial Consultant's practice is enrolled in a participating portfolio management service and receives a refund of their program fee under the Schwab Satisfaction Guarantee, Schwab will debit the amount of Relationship Pay the Financial Consultant receives by a percentage of the amount of the fee refunded.
102104
103105#### Solutions Pay
111113#### Solutions Pay
112114
113115<table><tbody><tr><td><h4 name="H4_HEAD">Category&nbsp;1</h4><h5 name="H5_HEAD">Asset Consolidation</h5></td><td><h4 name="H4_HEAD">Category&nbsp;1</h4><h4 name="H4_HEAD">Financial Consultant's Compensation<span name="C_Superscript">1</span></h4></td><td><h4 name="H4_HEAD">Category&nbsp;1</h4><h5 name="H5_HEAD">One-Time Solutions Payment</h5></td></tr><tr><td><p name="P_BODY_END">Net Asset Flows (total inflow of client assets minus the total outflow of client assets)</p></td><td><p name="P_BODY_END">0.0008 × Net Asset Flows</p></td><td><p name="P_BODY_END">$80 per $100,000 of Client Balances</p></td></tr></tbody></table>
114116
1151171 Schwab may cap the amount of incentive compensation that a Financial Consultant can earn from any one client from the Solutions Pay component.
116118
117<table><tbody><tr><td><h4 name="H4_HEAD">Category&nbsp;2</h4><h5 name="H5_HEAD">Portfolio Management Services*</h5></td><td><h4 name="H4_HEAD">Category&nbsp;2</h4><h5 name="H5_HEAD">Financial Consultant's Compensation<span name="C_Superscript">1</span></h5></td><td><h4 name="H4_HEAD">Category&nbsp;2</h4><h5 name="H5_HEAD">One-Time Solutions Payment</h5></td></tr><tr><td><ul><li name="P_BULLET_12pt">Schwab Wealth Advisory™</li><li name="P_BULLET_12pt">Schwab Intelligent Portfolios<span name="C_SuperscriptR">®</span></li><li name="P_BULLET_12pt">Schwab Intelligent Portfolios Premium<span name="C_SuperscriptR">®</span></li><li name="P_BULLET_12pt">Schwab Advisor Network<span name="C_SuperscriptR">®</span></li><li name="P_BULLET_12pt">Schwab Personal Trust-Full Corporate&nbsp;Trustee</li><li name="P_BULLET_12pt">Schwab Managed Portfolios™</li><li name="P_BULLET_12pt">Schwab Managed Account Services™ (which includes ThomasPartners<span name="C_SuperscriptR">®</span> Strategies, Windhaven<span name="C_SuperscriptR">®</span> 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™)</li><li name="P_BULLET_12pt" spaceafter="0px">USAA Managed Portfolios<span name="C_SuperscriptR">®</span></li></ul></td><td><p name="P_BODY_END">0.002 × amount enrolled</p></td><td><p name="P_BODY_END">$200 per $100,000 of Client Balances</p></td></tr><tr><td><p name="P_BODY_END">Annuities by a Financial Consultant with an active insurance&nbsp;license</p></td><td><p name="P_BODY_END">0.002 × annuity amount</p></td><td><p name="P_BODY_END">$200 per $100,000 of Client Balances</p></td></tr></tbody></table>
119<table><tbody><tr><td><h4 name="H4_HEAD">Category&nbsp;2</h4><h5 name="H5_HEAD">Portfolio Management Services*</h5></td><td><h4 name="H4_HEAD">Category&nbsp;2</h4><h5 name="H5_HEAD">Financial Consultant's Compensation<span name="C_Superscript">1</span></h5></td><td><h4 name="H4_HEAD">Category&nbsp;2</h4><h5 name="H5_HEAD">One-Time Solutions Payment</h5></td></tr><tr><td><ul><li name="P_BULLET_12pt">Schwab Wealth Advisory™</li><li name="P_BULLET_12pt">Schwab Intelligent Portfolios<span name="C_SuperscriptR">®</span></li><li name="P_BULLET_12pt">Schwab Intelligent Portfolios Premium<span name="C_SuperscriptR">®</span></li><li name="P_BULLET_12pt">Schwab Advisor Network<span name="C_SuperscriptR">®</span></li><li name="P_BULLET_12pt">Schwab Personal Trust-Full Corporate&nbsp;Trustee</li><li name="P_BULLET_12pt">Schwab Managed Portfolios™</li><li name="P_BULLET_12pt">Schwab Managed Account Services™ (which includes ThomasPartners<span name="C_SuperscriptR">®</span> Strategies, Windhaven<span name="C_SuperscriptR">®</span> 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, Schwab Personalized Indexing™, and Selective Portfolios)</li><li name="P_BULLET_12pt" spaceafter="0px">USAA Managed Portfolios<span name="C_SuperscriptR">®</span></li></ul></td><td><p name="P_BODY_END">0.002 × amount enrolled</p></td><td><p name="P_BODY_END">$200 per $100,000 of Client Balances</p></td></tr><tr><td><p name="P_BODY_END">Annuities by a Financial Consultant with an active insurance&nbsp;license</p></td><td><p name="P_BODY_END">0.002 × annuity amount</p></td><td><p name="P_BODY_END">$200 per $100,000 of Client Balances</p></td></tr></tbody></table>
118120
119121\*Excludes Wasmer Schroeder™ Ultra Short Strategies and Wasmer Schroeder™ Treasury Bond Ladder Strategies.
120122
1211231 Schwab may cap the amount of incentive compensation that a Financial Consultant can earn from any one client from the Solutions Pay component.
122124
123<table><tbody><tr><td><h4 name="H4_HEAD">Category&nbsp;3</h4><h5 name="H5_HEAD">Other Products</h5></td><td><h4 name="H4_HEAD">Category&nbsp;3</h4><h5 name="H5_HEAD">Financial Consultant's Compensation<span name="C_Superscript">1</span></h5></td><td><h4 name="H4_HEAD">Category&nbsp;3</h4><h5 name="H5_HEAD">One-Time Solutions Payment</h5></td></tr><tr><td><p name="P_BODY_END">Introductions to Charles Schwab Bank,&nbsp;SSB for mortgages by Financial Consultants who are also employees of Charles Schwab Bank,&nbsp;SSB</p></td><td><p name="P_BODY">0.002 × loan amount for new mortgages;</p><p name="P_BODY_END">0.0011 × loan amount for refinanced loans</p></td><td><p name="P_BODY">$200 per $100,000 of loan amount</p><p name="P_BODY_END">$110 per $100,000 of loan amount</p></td></tr><tr><td><p name="P_BODY_END">Referrals to Schwab Bank Pledged Asset Line<span name="C_SuperscriptR">®</span> (PAL)</p></td><td><p name="P_BODY_END">$120 per opened account</p></td><td><p name="P_BODY_END">$120</p></td></tr><tr><td><p name="P_BODY_END">Schwab Personal Trust-Successor Trustee</p></td><td><p name="P_BODY_END">$175 per household designation</p></td><td><p name="P_BODY_END">$175</p></td></tr><tr><td><p name="P_BODY_END">Referrals to a Schwab Charitable™ donor-advised&nbsp;fund<span name="C_Superscript">2</span></p></td><td><p name="P_BODY_END">$175 per converted referral for new accounts over $25,000</p></td><td><p name="P_BODY_END">$175</p></td></tr><tr><td><p name="P_BODY_END">Referrals to Life Insurance by a Financial Consultant with an active insurance&nbsp;license</p></td><td><p name="P_BODY_END">$450 per converted referral</p></td><td><p name="P_BODY_END">$450</p></td></tr><tr><td><p name="P_BODY_END">Referrals to Long-Term Care Insurance by a Financial Consultant with an active insurance license</p></td><td><p name="P_BODY_END">$450 per converted referral</p></td><td><p name="P_BODY_END">$450</p></td></tr><tr><td><p name="P_BODY_END">Referrals to Schwab Advisor Services™</p></td><td><p name="P_BODY">$800 for referrals up to $30 million;</p><p name="P_BODY_END">$3,500 for referrals of $30+ million</p></td><td><p name="P_BODY_END">$800 or $3,500</p></td></tr><tr><td><p name="P_BODY_END">Referrals to Schwab Retirement Plan Services or Retirement Business Services</p></td><td><p name="P_BODY">0.002 × amount of assets referred;</p><p name="P_BODY_END">$250,000 minimum asset level to $10,000,000 maximum asset&nbsp;level</p></td><td><p name="P_BODY_END">$500 for a $250,000 referral</p></td></tr></tbody></table>
125<table><tbody><tr><td><h4 name="H4_HEAD">Category&nbsp;3</h4><h5 name="H5_HEAD">Other Products</h5></td><td><h4 name="H4_HEAD">Category&nbsp;3</h4><h5 name="H5_HEAD">Financial Consultant's Compensation<span name="C_Superscript">1</span></h5></td><td><h4 name="H4_HEAD">Category&nbsp;3</h4><h5 name="H5_HEAD">One-Time Solutions Payment</h5></td></tr><tr><td><p name="P_BODY_END">Introductions to Charles Schwab Bank,&nbsp;SSB for mortgages by Financial Consultants who are also employees of Charles Schwab Bank,&nbsp;SSB</p></td><td><p name="P_BODY">0.002 × loan amount for new mortgages;</p><p name="P_BODY_END">0.0011 × loan amount for refinanced loans</p></td><td><p name="P_BODY">$200 per $100,000 of loan amount</p><p name="P_BODY_END">$110 per $100,000 of loan amount</p></td></tr><tr><td><p name="P_BODY_END">Referrals to Schwab Bank Pledged Asset Line<span name="C_SuperscriptR">®</span> (PAL)</p></td><td><p name="P_BODY_END">$120 per opened account</p></td><td><p name="P_BODY_END">$120</p></td></tr><tr><td><p name="P_BODY_END">Schwab Personal Trust-Successor Trustee</p></td><td><p name="P_BODY_END">$175 per household designation</p></td><td><p name="P_BODY_END">$175</p></td></tr><tr><td><p name="P_BODY_END">Referrals to a donor-advised fund account with DAFgiving360™<span name="C_Superscript">2</span></p></td><td><p name="P_BODY_END">$175 per converted referral for new accounts over $25,000</p></td><td><p name="P_BODY_END">$175</p></td></tr><tr><td><p name="P_BODY_END">Referrals to Life Insurance by a Financial Consultant with an active insurance&nbsp;license</p></td><td><p name="P_BODY_END">$450 per converted referral</p></td><td><p name="P_BODY_END">$450</p></td></tr><tr><td><p name="P_BODY_END">Referrals to Long-Term Care Insurance by a Financial Consultant with an active insurance license</p></td><td><p name="P_BODY_END">$450 per converted referral</p></td><td><p name="P_BODY_END">$450</p></td></tr><tr><td><p name="P_BODY_END">Referrals to Schwab Advisor Services™</p></td><td><p name="P_BODY">$800 for referrals up to $30 million;</p><p name="P_BODY_END">$3,500 for referrals of $30+ million</p></td><td><p name="P_BODY_END">$800 or $3,500</p></td></tr><tr><td><p name="P_BODY_END">Referrals to Schwab Retirement Plan Services or Retirement Business Services</p></td><td><p name="P_BODY">0.002 × amount of assets referred;</p><p name="P_BODY_END">$250,000 minimum asset level to $10,000,000 maximum asset&nbsp;level</p></td><td><p name="P_BODY_END">$500 for a $250,000 referral</p></td></tr></tbody></table>
124126
1251271 Schwab may cap the amount of incentive compensation that a Financial Consultant can earn from any one client from the Solutions Pay component.
126128
1272 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.
1292 DAFgiving360 is the name used for the combined programs and services of Donor Advised Charitable Giving, Inc., an independent nonprofit organization that has entered into service agreements with certain subsidiaries of The Charles Schwab Corporation. DAFgiving360 is a tax-exempt public charity as described in Sections 501(c)(3),
130509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code.
128131
129132#### Bringing Together a Financial Consultant's Pay
130133
131134As an example, suppose an in-practice client of a Financial Consultant brings a portfolio of $500,000 to Schwab and invests it as follows:
132135
133136- $200,000 into Schwab Wealth Advisory™
134137- $100,000 into Mutual Funds
135138- $100,000 into ETFs
136139- $100,000 in Cash
137140
138141#### The Financial Consultant would earn annual compensation as follows:
139142
140<table><tbody><tr><td><h4 name="H4_HEAD">Payment Type</h4></td><td><h4 name="H4_HEAD">Description</h4></td><td><h4 name="H4_HEAD">Compensation Amount</h4></td></tr><tr><td><p name="P_BODY_END">Solutions Pay (one-time&nbsp;payments)</p></td><td><p name="P_BODY_END">$500,000 transfer into Schwab</p></td><td><p name="P_BODY_END">$400</p></td></tr><tr><td><p name="P_BODY_END">Solutions Pay (one-time&nbsp;payments)</p></td><td><p name="P_BODY_END">$200,000 enrollment into Schwab Wealth&nbsp;Advisory™</p></td><td><p name="P_BODY_END">$400</p></td></tr><tr><td><p name="P_BODY_END">Relationship Pay (annual&nbsp;payments)</p></td><td><p name="P_BODY_END">$200,000 balance in Schwab Wealth&nbsp;Advisory™</p></td><td><p name="P_BODY_END">$56.00-$90.00</p></td></tr><tr><td><p name="P_BODY_END">Relationship Pay (annual&nbsp;payments)</p></td><td><p name="P_BODY_END">$100,000 balance in Mutual Funds</p></td><td><p name="P_BODY_END">$7.70-$12.60</p></td></tr><tr><td><p name="P_BODY_END">Relationship Pay (annual&nbsp;payments)</p></td><td><p name="P_BODY_END">$100,000 balance in Cash</p></td><td><p name="P_BODY_END">$7.70-$12.60</p></td></tr><tr><td><p name="P_BODY_END">Relationship Pay (annual&nbsp;payments)</p></td><td><p name="P_BODY_END">$100,000 balance in ETFs</p></td><td><p name="P_BODY_END">$7.70-$12.60</p></td></tr><tr><td></td><td></td><td><p name="P_BODY_END">TOTAL<br>$879.10-$927.80</p></td></tr></tbody></table>
143<table><tbody><tr><td><h4 name="H4_HEAD">Payment Type</h4></td><td><h4 name="H4_HEAD">Description</h4></td><td><h4 name="H4_HEAD">Compensation Amount</h4></td></tr><tr><td><p name="P_BODY_END">Solutions Pay (one-time&nbsp;payments)</p></td><td><p name="P_BODY_END">$500,000 transfer into Schwab</p></td><td><p name="P_BODY_END">$400</p></td></tr><tr><td><p name="P_BODY_END">Solutions Pay (one-time&nbsp;payments)</p></td><td><p name="P_BODY_END">$200,000 enrollment into Schwab Wealth&nbsp;Advisory™</p></td><td><p name="P_BODY_END">$400</p></td></tr><tr><td><p name="P_BODY_END">Relationship Pay (annual&nbsp;payments)</p></td><td><p name="P_BODY_END">$200,000 balance in Schwab Wealth&nbsp;Advisory™</p></td><td><p name="P_BODY_END">$44.80-$75.60</p></td></tr><tr><td><p name="P_BODY_END">Relationship Pay (annual&nbsp;payments)</p></td><td><p name="P_BODY_END">$100,000 balance in Mutual Funds</p></td><td><p name="P_BODY_END">$6.30-$10.80</p></td></tr><tr><td><p name="P_BODY_END">Relationship Pay (annual&nbsp;payments)</p></td><td><p name="P_BODY_END">$100,000 balance in Cash</p></td><td><p name="P_BODY_END">$6.30-$10.80</p></td></tr><tr><td><p name="P_BODY_END">Relationship Pay (annual&nbsp;payments)</p></td><td><p name="P_BODY_END">$100,000 balance in ETFs</p></td><td><p name="P_BODY_END">$6.30-$10.80</p></td></tr><tr><td></td><td></td><td><p name="P_BODY_END">TOTAL<br>$863.70-$908.00</p></td></tr></tbody></table>
141144
142145### Investment Consultants
143146
144147#### What They Do
145148
146149Investment 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.
200203#### What They Do
201204
202205International VP-Financial Consultants provide services primarily to our clients residing outside the United States.
203206
204207#### Compensation
205208
206These Financial Consultants are paid according to the same Solutions Pay incentive plan as U.S. Financial Consultants, with the exception that some products available in the U.S. are not available to clients residing in some non-U.S. jurisdictions. These Financial Consultants do not receive Relationship Pay based on Account Balances.
209These Financial Consultants are paid according to the same incentive plan as U.S. Financial Consultants, with the exception that some products available in the U.S. are not available to clients residing in some non-U.S. jurisdictions.
207210
208211### International Assistant Branch Managers
209212
210213#### What They Do
211214
212215International Assistant 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.
232235#### What They Do
233236
234237Customer Service and Brokerage Service Representatives provide service to clients via telephone, email, and online chat; respond to telephone inquiries from clients about the products and services we offer; and may contact clients by phone or email.
235238
236239#### Compensation
237240
238In addition to a base salary, these representatives are eligible to earn a quarterly bonus that is based on measured performance in adherence to scheduled availability and customer satisfaction and an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of productivity, client satisfaction, quality assurance, internal referrals to Schwab teams, teamwork, and client feedback.
241In addition to a base salary, these representatives are eligible to earn a quarterly bonus that is based on customer satisfaction and a quarterly bonus that is based on converted referrals, and an annual bonus that is funded based on Schwab's performance and determined based on manager discretion, which may include consideration of productivity, client satisfaction, quality assurance, internal referrals to Schwab teams, teamwork, and client feedback.
239242
240243## 4\. Specialty Representatives
241244
242245### New Client Investment Consultants
243246
244247#### What They Do
257260#### What They Do
258261
259262Investor Development Consultants interact with prospects and clients via telephone, through inbound and outbound calls. They work to understand client needs, discuss solutions, and introduce clients to a fully integrated relationship with Schwab. They also make referrals to partners to help clients select products that meet their objectives.
260263
261264#### Compensation
262265
263In addition to a base salary, Investor Development 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 the service quality, client satisfaction, teamwork, and the provision of education and referrals to our clients.
266In addition to a base salary, these consultants are eligible to earn additional incentive compensation based on the following criteria:
264267
268- Client Navigation-A measurement of Net Assets Flow and enrollments in Portfolio Management Services. The New Client Investment Consultant is paid the same for Portfolio Management Services, regardless of what solution the client elects.
269- Manager Discretion-A quarterly discretionary incentive based on manager discretion, which may include consideration of service quality, client satisfaction, teamwork, and the provision of education and referrals to our clients.
270
265271### Financial Consultants (Financial Solutions Branch)
266272
267273#### What They Do
268274
269275Financial Consultants (Financial Solutions Branch) work with clients in a phone-based and virtual meeting environment. 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 products-including investments, banking, and insurance-that meet client objectives. Each Financial Consultant supports a practice, which includes clients who are assigned to that Financial Consultant as a primary point of contact.
270276
544550If you have questions about information contained in these pages, please call 800-435-4000. For media inquiries, please call the Schwab Corporate Public Relations hotline at 415-667-9500.
545551
546552Third-party trademarks appearing in this document are the property of their respective owners.
547553
548554Please note that the information in these pages 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").
549555
550©2024 Charles Schwab & Co., Inc. All rights reserved. [Member SIPC](https://www.sipc.org/).
551E-0724-5865318444383076405 REG31752-51 (07/24)
556©2025 Charles Schwab & Co., Inc. All rights reserved. [Member SIPC](https://www.sipc.org/).
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