=================================================================== --- 20260201_rev01 +++ 20260501_rev01 @@ -1,15 +1,17 @@ +[View this notice in PDF format](https://www.schwab.com/resource/how-we-compensate-our-investment-professionals) + 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. Certain 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. 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://schwab.com/pricing). -These pages summarize our compensation plans and incorporate all recent changes in effect as of January 1, 2026. +These pages summarize our compensation plans and incorporate all recent changes in effect as of April 1, 2026. These pages are accurate as of the date indicated above. The most recent information is available at [schwab.com/compensationdisclosure](https://schwab.com/compensationdisclosure). We invite you to read this information carefully and to contact us at [800-435-4000](tel:+18004354000) if you have any questions. (For multilingual services, call [800-662-6068](tel:+18006626068). For services outside the U.S., call [+1-415-667-8400](tel:+14156678400).) ## Types of Investment Professionals @@ -90,41 +92,148 @@ As 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. The third category of Relationship Pay is for credit products. #### Relationship Pay Based on Account Balances -

Category 1

Portfolio Management Services (typically have more involved ongoing service needs)

Category 1

Annual Relationship Pay per $100,000 of Client Balances

Schwab Wealth Advisory™
Schwab Managed Portfolios™
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, Schwab Personalized Indexing™, and Selective Portfolios)
Schwab Guided Portfolios™

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.

This results in a payment between:

$22.40 (100,000 × .0032 × .07) and
$29.40 (100,000 × .0042 × .07),

$25.60 (100,000 × .0032 × .08), and
$33.60 (100,000 × .0042 × .08) or

$28.80 (100,000 × .0032 × .09) and
$37.80 (100,000 × .0042 × .09)

+| Category 1 +Portfolio Management Services (typically have more involved ongoing service needs) | Category 1 +Annual Relationship Pay per $100,000 of Client Balances | +| --- | --- | +| +- Schwab Wealth Advisory™ +- Schwab Managed Portfolios™ +- 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, Schwab Personalized Indexing™, and Selective Portfolios) +- Schwab Guided Portfolios™ -

Category 2

Portfolio Management Referrals and Non-Managed Accounts (typically have less involved ongoing service needs)

Category 2

Annual Relationship Pay per $100,000 of Client Balances

Schwab Advisor Network®
Schwab Intelligent Portfolios®
Schwab Intelligent Portfolios Premium®
Schwab Personal Trust
Annuities (for Financial Consultants with an active insurance license)*
Wasmer Schroeder™ Ultra Short Strategies
Wasmer Schroeder™ Treasury Bond Ladder Strategies
Schwab Alternative Investments Select

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 accounts.

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.

This results in a payment between:

$6.30 (100,000 × .0009 × .07) and
$8.40 (100,000 × .0012 × .07),

$7.20 (100,000 × .0009 × .08) and
$9.60 (100,000 × .0012 × .08), or

$8.10 (100,000 × .0009 × .09) and
$10.80 (100,000 × .0012 × .09)

+ | -

Category 3

Non-investment Advice Products and Activities

Credit Products:

Margin Loans
Schwab Bank Home Equity Line of Credit (HELOC)
Schwab Bank Pledged Asset Line® (PAL)

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).

+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. +This results in a payment between: + +$22.40 (100,000 × .0032 × .07) and +$29.40 (100,000 × .0042 × .07), + +$25.60 (100,000 × .0032 × .08), and +$33.60 (100,000 × .0042 × .08) or + +$28.80 (100,000 × .0032 × .09) and +$37.80 (100,000 × .0042 × .09) + + | + +| Category 2 +Portfolio Management Referrals and Non-Managed Accounts (typically have less involved ongoing service needs) | Category 2 +Annual Relationship Pay per $100,000 of Client Balances | +| --- | --- | +| +- Schwab Advisor Network® +- Schwab Intelligent Portfolios® +- Schwab Personal Trust +- Annuities (for Financial Consultants with an active insurance license)\* +- Wasmer Schroeder™ Ultra Short Strategies +- Wasmer Schroeder™ Treasury Bond Ladder Strategies +- Schwab Alternative Investments Select + +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 accounts. + + | + +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. + +This results in a payment between: + +$6.30 (100,000 × .0009 × .07) and +$8.40 (100,000 × .0012 × .07), + +$7.20 (100,000 × .0009 × .08) and +$9.60 (100,000 × .0012 × .08), or + +$8.10 (100,000 × .0009 × .09) and +$10.80 (100,000 × .0012 × .09) + + | + +| Category 3 +Non-investment Advice Products and Activities | +| --- | +| +Credit Products: + +- Margin Loans +- Schwab Bank Home Equity Line of Credit (HELOC) +- Schwab Bank Pledged Asset Line® (PAL) + +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). + + | + When 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. #### Solutions Pay -Solutions Pay compensates a Financial Consultant for attracting new clients and assets to Schwab and recommending 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. +Solutions Pay compensates a Financial Consultant for attracting new clients and assets to Schwab and recommending 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 exception is for Schwab Intelligent Portfolios®, 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. #### Solutions Pay -

Category 1

Asset Consolidation

Category 1

Financial Consultant's Compensation1

Category 1

One-Time Solutions Payment

Net Asset Flows (total inflow of client assets minus the total outflow of client assets)

0.0008 × Net Asset Flows

$80 per $100,000 of Client Balances

+| Category 1 +Asset Consolidation | Category 1 +Financial Consultant's Compensation1 | Category 1 +One-Time Solutions Payment | +| --- | --- | --- | +| Net Asset Flows (total inflow of client assets minus the total outflow of client assets) | 0.0008 × Net Asset Flows | $80 per $100,000 of Client Balances | 1 Schwab may cap the amount of incentive compensation that a Financial Consultant can earn from any one client from the Solutions Pay component. -

Category 2

Portfolio Management Services*

Category 2

Financial Consultant's Compensation1

Category 2

One-Time Solutions Payment

Schwab Wealth Advisory™
Schwab Intelligent Portfolios®
Schwab Intelligent Portfolios Premium®
Schwab Advisor Network®
Schwab Personal Trust-Full Corporate Trustee and Self-Directed
Schwab Managed Portfolios™
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, Schwab Personalized Indexing™, and Selective Portfolios)
Schwab Guided Portfolios™

0.002 × amount enrolled

$200 per $100,000 of Client Balances

Annuities by a Financial Consultant with an active insurance license

0.002 × annuity amount

$200 per $100,000 of Client Balances

+| Category 2 +Portfolio Management Services\* | Category 2 +Financial Consultant's Compensation1 | Category 2 +One-Time Solutions Payment | +| --- | --- | --- | +| +- Schwab Wealth Advisory™ +- Schwab Intelligent Portfolios® +- Schwab Advisor Network® +- Schwab Personal Trust-Full Corporate Trustee and Self-Directed +- Schwab Managed Portfolios™ +- 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, Schwab Personalized Indexing™, and Selective Portfolios) +- Schwab Guided Portfolios™ + | 0.002 × amount enrolled | $200 per $100,000 of Client Balances | +| Annuities by a Financial Consultant with an active insurance license | 0.002 × annuity amount | $200 per $100,000 of Client Balances | + \*Excludes Wasmer Schroeder™ Ultra Short Strategies and Wasmer Schroeder™ Treasury Bond Ladder Strategies. 1 Schwab may cap the amount of incentive compensation that a Financial Consultant can earn from any one client from the Solutions Pay component. -

Category 3 Other Products	Category 3 Financial Consultant's Compensation1	Category 3 One-Time Solutions Payment
Introductions to Charles Schwab Bank, SSB for mortgages by Financial Consultants who are also employees of Charles Schwab Bank, SSB	0.002 × loan amount for new mortgages; 0.0011 × loan amount for refinanced loans	$200 per $100,000 of loan amount $110 per $100,000 of loan amount
Referrals to Schwab Bank Pledged Asset Line® (PAL)	$120 per opened account	$120
Schwab Personal Trust-Successor Trustee	$175 per household designation	$175
Referrals to a donor-advised fund account with DAFgiving360™2	$175 per converted referral for new accounts over $25,000	$175
Referrals to Life Insurance by a Financial Consultant with an active insurance license	$450 per converted referral	$450
Referrals to Long-Term Care Insurance by a Financial Consultant with an active insurance license	$450 per converted referral	$450
Referrals to Schwab Advisor Services™	$800 for referrals up to $30 million; $3,500 for referrals of $30+ million	$800 or $3,500
Referrals to Schwab Retirement Plan Services or Retirement Business Services	0.002 × amount of assets referred; $250,000 minimum asset level to $10,000,000 maximum asset level	$500 for a $250,000 referral
Schwab Alternative Investments Select	0.002 × amount invested	$200 per $100,000 of amount invested
Referrals to Wealth Services	0.0004 × amount referred; $10 million minimum asset level	$400 per $1,000,000 referred
Referrals to International Services	0.0004 × amount referred	$400 per $1,000,000 referred

+| Category 3 +Other Products | Category 3 +Financial Consultant's Compensation1 | Category 3 +One-Time Solutions Payment | +| --- | --- | --- | +| Introductions to Charles Schwab Bank, SSB for mortgages by Financial Consultants who are also employees of Charles Schwab Bank, SSB | 0.002 × loan amount for new mortgages; +0.0011 × loan amount for refinanced loans | $200 per $100,000 of loan amount +$110 per $100,000 of loan amount | +| Referrals to Schwab Bank Pledged Asset Line® (PAL) | $120 per opened account | $120 | +| Schwab Personal Trust-Successor Trustee | $175 per household designation | $175 | +| Referrals to a donor-advised fund account with DAFgiving360™2 | $175 per converted referral for new accounts over $25,000 | $175 | +| Referrals to Life Insurance by a Financial Consultant with an active insurance license | $450 per converted referral | $450 | +| Referrals to Long-Term Care Insurance by a Financial Consultant with an active insurance license | $450 per converted referral | $450 | +| Referrals to Schwab Advisor Services™ | $800 for referrals up to $30 million; +$3,500 for referrals of $30+ million | $800 or $3,500 | +| Referrals to Schwab Retirement Plan Services or Retirement Business Services | 0.002 × amount of assets referred; +$250,000 minimum asset level to $10,000,000 maximum asset level | $500 for a $250,000 referral | +| Schwab Alternative Investments Select | 0.002 × amount invested | $200 per $100,000 of amount invested | +| Referrals to Wealth Services | 0.0004 × amount referred; +$10 million minimum asset level | $400 per $1,000,000 referred | +| Referrals to International Services | 0.0004 × amount referred | $400 per $1,000,000 referred | 1 Schwab may cap the amount of incentive compensation that a Financial Consultant can earn from any one client from the Solutions Pay component. 2 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), 509(a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code. @@ -136,13 +245,22 @@ - $100,000 into Mutual Funds - $100,000 into ETFs - $100,000 in Cash #### The Financial Consultant would earn annual compensation as follows: -

Payment Type	Description	Compensation Amount
Solutions Pay (one-time payments)	$500,000 transfer into Schwab	$400
Solutions Pay (one-time payments)	$200,000 enrollment into Schwab Wealth Advisory™	$400
Relationship Pay (annual payments)	$200,000 balance in Schwab Wealth Advisory™	$44.80-$75.60
Relationship Pay (annual payments)	$100,000 balance in Mutual Funds	$6.30-$10.80
Relationship Pay (annual payments)	$100,000 balance in Cash	$6.30-$10.80
Relationship Pay (annual payments)	$100,000 balance in ETFs	$6.30-$10.80
		TOTAL $863.70-$908.00

+| Payment Type | Description | Compensation Amount | +| --- | --- | --- | +| Solutions Pay (one-time payments) | $500,000 transfer into Schwab | $400 | +| Solutions Pay (one-time payments) | $200,000 enrollment into Schwab Wealth Advisory™ | $400 | +| Relationship Pay (annual payments) | $200,000 balance in Schwab Wealth Advisory™ | $44.80-$75.60 | +| Relationship Pay (annual payments) | $100,000 balance in Mutual Funds | $6.30-$10.80 | +| Relationship Pay (annual payments) | $100,000 balance in Cash | $6.30-$10.80 | +| Relationship Pay (annual payments) | $100,000 balance in ETFs | $6.30-$10.80 | +| | TOTAL +$863.70-$908.00 | ### Investment Consultants #### What They Do 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. @@ -484,13 +602,13 @@ #### Payout IBLs are not paid commissions for the sale of any specific product or service, nor does Schwab pay them a salary or the incentive compensation earned by representatives who are employed by Schwab. Instead, they earn revenue from their business, the overall amount of which is based on the revenue Schwab earns from clients whose accounts are assigned to their independent branch, and revenue for insurance and financial plans as described below. For purposes of revenue earned by the IBLs, the assets in accounts assigned to them are divided into two categories. As with employee representatives, the difference in average rates between these two categories is based on the time and expertise necessary to recommend and service different products and programs and the inherent complexity and variety attributable to such products and services. Because IBLs are franchisees rather than employees, and because they are therefore expected and encouraged to have more individual control of the management of their time, only two rates are applied to the assets assigned to them. -- Advisor Assets-Assets in accounts enrolled in Schwab Wealth Advisory™, Schwab Managed Portfolios™, Schwab Managed Account Select®, Schwab Managed Account Connection® (discretionary wrap-fee programs that include ThomasPartners® Strategies, Windhaven® Strategies, and Wasmer Schroeder™ Strategies), Schwab Intelligent Portfolios Premium®, Schwab Guided Portfolios™, or accounts managed by an independent third-party investment advisor to whom the client was referred through the Schwab Advisor Network® service, or assets invested in a registered annuity; and +- Advisor Assets-Assets in accounts enrolled in Schwab Wealth Advisory™, Schwab Managed Portfolios™, Schwab Managed Account Select®, Schwab Managed Account Connection® (discretionary wrap-fee programs that include ThomasPartners® Strategies, Windhaven® Strategies, and Wasmer Schroeder™ Strategies), Schwab Guided Portfolios™, or accounts managed by an independent third-party investment advisor to whom the client was referred through the Schwab Advisor Network® service, or assets invested in a registered annuity; and - Non-Advisor Assets-Assets not in the Advisor Assets category, which include stocks, bonds, mutual funds, Schwab Intelligent Portfolios®, and ETFs, as well as payment for providing cash management services. Each month, Schwab calculates and applies an Advisor Assets Average Rate and a Non-Advisor Assets Average Rate to the assets in accounts assigned to all Schwab Independent Branches. The rates are calculated by looking at 12-month trailing assets and revenue from all Schwab Independent Branch accounts. @@ -521,13 +639,13 @@ #### What They Do Director, Wealth & Asset Management Solutions interact with clients whose investment objectives may be met by Schwab Wealth Advisory, as initially determined by Schwab Financial Consultants. They provide additional education and advice about the features of Schwab Wealth Advisory and meet with clients both in person (through our U.S. branch office locations) and by phone. #### Compensation -In addition to a base salary, Wealth & Asset Management Solutions Directors 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, teamwork, and training. +In addition to a base salary, Wealth & Asset Management Solutions Directors 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, branch engagement, prospect engagement, relationship management, leadership, development, asset flows into the SWA Program, teamwork, and training. ### Tax, Trust & Estate Specialists #### What They Do Tax, Trust & Estate Specialists work with clients to provide personalized tax, trust, and estate educational information that complements the client's overall wealth management strategy. @@ -559,8 +677,8 @@ If 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. Third-party trademarks appearing in this document are the property of their respective owners. Please 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"). -©2025 Charles Schwab & Co., Inc. All rights reserved. [Member SIPC](https://www.sipc.org/). -E-1225-02139 REG31752-56 (12/25) +©2026 Charles Schwab & Co., Inc. All rights reserved. [Member SIPC](https://www.sipc.org/). +E-0326-03923 REG31752-57 (03/26)

How We Compensate Our Investment Professionals

Full text changes — 20260201_rev01 to 20260501_rev01