01.14.22
Top Director Award Winners Pull Ahead of the Pack
by: Tim Kehrer and Ken Kehrer, Kehrer Bielan Research & Consulting
The 71 firms that received the Kehrer Bielan 2021 Top Director Awards, presented by Ameriprise Financial Institutions Group, separated themselves from the rest of the 406 firms evaluated by a substantial margin, achieving almost twice the industry average in these performance metrics:
|
Revenue Penetration of Deposits (per million) |
Year-over-Year Revenue Growth |
Revenue per Advisor |
Assets per Advisors (millions) |
Revenue per Client |
Top 71 Firms |
$2,521 |
9.4% |
$647,528 |
$117,538 |
$2,122 |
All 406 Firms |
$1,132 |
5.5% |
$377,325 |
$72,350 |
$1,332 |
How did they achieve this separation? Director leadership makes a difference.
The evaluation criteria included several actions that Directors have been stressing to achieve better performance: increasing advisory and insurance business, reducing the size of branch deposit territories and the size of advisor client books and adding advisors to provide thicker coverage of the opportunity in the institution.
|
Adivsory Revenue per Advisor |
Life Insurance Revenue per Advisor |
Clients per Advisor |
Deposits per Advisor (millions) |
Top 71 Firms |
$347,064 |
$9,370 |
358 |
$437 |
All 406 Firms |
$164,408 |
$4,922 |
324 |
$507 |
Indeed, the 2021 Kehrer Bielan Top Director firms have substantially more advisory and insurance business, as well as better advisor coverage than their peers. But they actually had slightly larger client books than other firms. Does this mean that the number of clients served by an advisor is not as important a driver of business performance as product mix and advisor coverage? Or that the 2021 Kehrer Bielan Top Directors have room to improve even more and increase their separation lead from over the pack.