financial advisorcompensation plan

Our Compensation Plan1 recognizes that larger gross production is generally more profitable to the firm; therefore, as a Financial Advisor, you receive a greater share of the revenue as your level of production increases – providing you with unlimited earning potential. In addition, our commission grid differs from that of other firms, as it does not differentiate between products. Stifel’s commission grid illustrates the firm’s philosophy of operating like a partnership. Using 25% for the first $12,000 of monthly gross contributes towards fixed costs, such as back office processing, market data expenses, technology, rent, utilities, insurance, and more. Thereafter, commissions for production over $12,000 are set at 50% – in true partnership fashion. No tricks. No gimmicks. Our advisors determine what products and services best meet their client’s needs, and are compensated appropriately – it’s just that simple. Because Stifel believes that our Financial Advisors are the driving force behind our firm’s success, we offer a competitive and attractive compensation package. Stifel offers a compensation payout structure that exceeds that of many other firms.

“Stifel does truly believe in being client focused. Our clients are not surprised by nuisance fees at every turn. Our compensation is fair and not tied to the objectives of the firm, but the objectives of the clients.”

Holly M. Baroway, CFP®, MBA Senior Vice President/Investments Denver, Colorado

1 Minimum production requirement of $225,000 annually for grid compensation. Production below minimum qualifies for a flat 25% payout.

Stifel’s compensation program is one that is easy to understand, with two main components: Cash Compensation and Tax-Advantaged Deferred Compensation.

Monthly Commissions At Stifel, we believe in always putting the interest of our clients first. Therefore, we have opted to use just one grid system, with no product differentiation. This alleviates the pressure some Financial Advisors may feel to sell certain products and ensures that you are able to provide your clients with only the products and services you honestly feel will work to their benefit.

One Simple Grid

Source: Financial Planning, “Best Advisor Pay for the $1M Producer,” April 16, 2021. The above represents firms with a minimum of 1,000 financial advisors and with investment banking services.

Non-Elective, Production-Based Deferred Compensation Example

5

$1,000,000 producer payout

30% 35% 40% 45% 50%

Stifel

Janney

RBC

Raymond James

Merrill Lynch

51.4%

51.0%

50.2%

49.3%

48.5%

$600,000 producer payout

monthly gross production

monthly deferred

30% 35% 40% 45% 50%

Stifel

RBC

Janney

Raymond James

Merrill Lynch

49.0%

25%

$300,000

First $12,000 of Monthly Gross

Begin Earning Monthly Deferred When YTD ReachesAll Gross Above $12,000

Percentage Payout Into Deferred Account

50%

5%

47.0%

44.0%

43.5%

43.0%

top-tier compensation stifel wealth accumulation plan

commission grid

payout and cap

$15,000

$15,000

Non-Elective, Production-Based Deferred Investment Options

In addition to your monthly commissions, youʼll have the opportunity to participate in a unique deferred compensation plan that allows you to build wealth, tax-deferred. This plan is referred to as the Stifel Wealth Accumulation Plan or SWAP. There are two parts to this program: Non-elective, production-based deferrals and elective deferrals.

Non-Elective, Production-Based Deferred Compensation – With SWAP, once your gross production reaches the $300,000 threshold, you will automatically begin receiving 5% towards your non-elective, production-based deferred compensation award, based on all annual gross. Non-elective, production-based deferred compensation and the company match are subject to a seven-year vesting period.

January

$75,000

$75,000

–

–

–

–

– –

–

$50,000

$175,000

$50,000 $50,000$50,000

$125,000

$75,000

$250,000 $300,000 $350,000

$2,500 $4,250

$21,750$17,500

$435,000

$85,000Monthly Gross

YTD Gross

5% Deferred

YTD Deferred

February March April May June July

–

The Stifel Wealth Accumulation Plan (SWAP)

Source: Financial Planning, “Best Advisor Pay for the $600K Producer,” April 9, 2021. The above represents firms with a minimum of 1,000 financial advisors and with investment banking services.

www.choosestifel.com

deferred compensation

On Stifelʼs grid system, your monthly gross production determines your respective monthly compensation. The higher the gross revenue, the higher your potential payout – as you can see in the chart below.

With your deferred compensation, 50% of the award will be in Stifel stock, and the other 50% will be in a cash alternative fixed-rate investment. Below is an example with $20,000 in deferred compensation.

$ $

6

Investing Your Production-Based Deferred Compensation

Compensation Summary

deferred compensation stifel stock fixed income fund

$20,000$10,000 $10,00050% 50%

% %

annual gross

commission deferred total$ $ $ % % %

$2,000,000

$1,500,000

$1,250,000

$1,000,000

$750,000

$600,000

$500,000

$400,000

$300,000

$964,000

$714,000

$589,000

$464,000

$339,000

$264,000

$214,000

$164,000

$114,000

$100,000

$75,000

$62,000

$50,000

$37,000

$30,000

$25,000

$20,000

$15,000

$1,064,000

$789,000

$651,500

$514,000

$376,500

$294,000

$239,000

$184,000

$129,000

53.20%

52.60%

52.12%

51.40%

50.20%

49.00%

47.80%

46.00%

43.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

5.00%

48.20%

47.60%

47.12%

46.40%

45.20%

44.00%

42.80%

41.00%

38.00%

Notes:(1) Commission is based on Standard 25/50% formula, whereby the first $12,000 of the month is set at 25% and the balance is set at 50%.(2) Deferred Compensation is 5.0% of annual gross provided that gross is $300,000 or more.

One Financial Plaza | 501 North Broadway | St. Louis, Missouri 63102 Stifel, Nicolaus & Company, Incorporated | Member SIPC & NYSE | www.stifel.com 1121.3938685.1