How We Compensate Our Investment Professionals

Schwab updated its investment-professional compensation disclosure effective October 1, 2026. Most changes are role renames and compensation-criteria rewording for certain phone-based and regional staff, but two changes shift how reps are financially incentivized: Trading Consultants are now rewarded for how much clients use trading platforms (rather than for referrals to educational consultations), and Regional Bond Specialists' bonuses now explicitly include asset flows into fixed income products and managed solutions. Both create sharper incentives for reps to steer clients toward more trading or specific products.

Trading Consultants now incentivized by how much clients tradeReps who talk to you by phone about Schwab's trading tools used to be paid for getting you…

Reps who talk to you by phone about Schwab's trading tools used to be paid for getting you into a consultation or workshop. Now they're paid based on how much you actually use trading platforms and products afterward. That gives them a direct financial reason to encourage you to trade more or adopt more trading tools, even though the document says these reps don't give trading advice.

“Clients' future utilization of trading platforms and products in their self-directed accounts.”

What you can do — If a Trading Consultant encourages you to trade more actively or try new platforms, remember they're financially rewarded for your activity — evaluate the advice on its own merits, not just because it's suggested.

OTHER

Bond Specialists' bonus now tied to selling specific fixed-income productsRegional Bond Specialists give you advice on fixed income investing. Their bonus formula…

Regional Bond Specialists give you advice on fixed income investing. Their bonus formula now explicitly rewards them for getting client money ('asset flows') into fixed income securities, products, and managed solutions, replacing a vaguer 'business development' factor. This sharpens the financial incentive for these advisors to recommend products that bring assets into those specific categories.

“enrollments resulting in asset flows into fixed income securities and products, as well as managed solutions”

What you can do — When getting fixed income recommendations from a Regional Bond Specialist, ask whether a suggested product is the best fit for your goals versus alternatives, given they're now explicitly rewarded for asset flows into these products.

OTHER

20260501_rev01 → 20261001_rev01COLOUR MARKS THE SEVERITY OF A FLAGGED CLAUSE · + AND − MARK ADDED AND REMOVED

 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 July 1, 2026.
+These pages summarize our compensation plans and incorporate all recent changes in effect as of October 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
 | 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 |
+| Schwab Alternative Investments Select3 | 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 |
 Schwab may cap the amount of incentive compensation that a Financial Consultant can earn from any one client from the Solutions Pay component.
 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),
 (a)(1), and 170(b)(1)(A)(vi) of the Internal Revenue Code.
+Excludes Schwab private placement cash management or liquidity management products.
 #### Bringing Together a Financial Consultant's Pay
 As an example, suppose an in-practice client of a Financial Consultant brings a portfolio of $500,000 to Schwab and invests it as follows:
 - $200,000 into Schwab Wealth Advisory™
 - $100,000 into Mutual Funds
 #### Compensation
 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 client retention, branch growth and productivity, client satisfaction, and development of staff.
 ### Trader Sales Representatives
+Trader Sales Representatives identify trading clients who can benefit from Schwab's trading tools and education. They do not provide trading advice. The group consists of regionally based Regional Investment Strategists who work with local branches, as well as phone-based Trading Consultants and Education Specialists.
+Trader Sales Representatives identify trading clients who can benefit from Schwab's trading tools and education. They do not provide trading advice. The group consists of Regional Trading Consultants who work with local branches, as well as phone-based Trading Consultants and Trader Engagement Specialists.
+- Regional Investment Strategists (RISs)
+- Regional Trading Consultants
 What They Do
+Regional Investment Strategists support a designated region of clients assigned to local Financial Consultants' practices. They work with Financial Consultants by serving as their primary point of contact for trading clients. They also assist high net worth clients not assigned to a Financial Consultant's practice.
+Regional Trading Consultants support a designated region of clients assigned to local Financial Consultants' practices. They work with Financial Consultants by serving as their primary point of contact for complex trading needs or scenarios. They educate the region to how our clients can effectively utilize our trading products, platforms, and services.
 Compensation
+In addition to a base salary, RISs 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 frequency of one-on-one client consultations, regional client growth and retention, local market seminars and events hosted, market area lead-flow generation, and client satisfaction.
+In addition to a base salary, Regional Trading Consultants are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion. Factors considered include client growth and retention, local market seminars and events hosted, local client satisfaction, and region-specific readiness for trading needs.
 - Trading Consultants
 What They Do
 Trading Consultants interact with prospects and clients via telephone, through inbound and outbound calling. They work to understand client trading needs and position appropriate trading tools, research and education.
 Compensation
 In addition to a base salary, these consultants have the potential to earn additional monthly and quarterly incentive compensation. The monthly incentive is based on the following criteria:
+- Bringing Net New Assets to Schwab.
+- Referring a client who attends a new client/options consultation, a consultation with a Regional Investment Strategist, an in-branch workshop, or a seminar.
+- Net New Assets to Schwab.
+- Clients' future utilization of trading platforms and products in their self-directed accounts.
+The quarterly discretionary incentive is determined based on manager discretion, which may include consideration of efficiency, productivity, partnership, focus negotiation, service quality, and accuracy.
+The quarterly discretionary incentive is determined based on manager discretion. Factors considered include efficiency, productivity, partnership, negotiation, service quality, and accuracy.
+- Trader Education Specialists
+- Trader Engagement Specialists
 What They Do
+Trader Education Specialists partner with Trading Consultants to help onboard new clients. Education Specialists conduct phone-based, customized, one-on-one consultations with new clients to teach them how to leverage Schwab's trading platforms, tools, and research resources.
+Trader Engagement Specialists partner with Trading Consultants and Financial Consultants to help support new and existing clients. Engagement Specialists conduct phone-based, customized, one-on-one consultations with clients to teach them how to leverage Schwab's trading platforms, tools, and research resources.
 Compensation
+In addition to a base salary, Education 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 quantity of one-on-one client consultations, quality of consultation interactions, client engagement, and whether clients leverage subsequent education.
+In addition to a base salary, Engagement Specialists are eligible to earn an annual bonus that is funded based on Schwab's performance and determined based on manager discretion. Factors considered include consideration of quantity of one-on-one client consultations, quality of consultation interactions, client engagement, and whether clients leverage subsequent platforms and education.
 ### Fixed Income Specialists
 Fixed Income Specialists serve clients with fixed income investing needs. The group consists of Regional Bond Specialists and Bond Investment Specialists. Neither group earns commissions on transactions. Nor does it matter whether a transaction is executed as agent, as a riskless principal, or from Schwab's own inventory.
 - Regional Bond Specialists
 What They Do
 Regional Bond Specialists provide advice and service to Schwab clients specific to their fixed income investing needs.
 Compensation
+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 subjective measures at manager discretion, which may include relationship management, business development, quality assurance, teamwork, client reviews, and field partnerships.
+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, which includes relationship management, quality assurance, teamwork, client satisfaction, field partnerships, and enrollments resulting in asset flows into fixed income securities and products, as well as managed solutions.
 - Bond Investment Specialists
 What They Do
 Bond Investment Specialists advise and serve clients with fixed income investing needs by responding to inbound phone calls.
 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").
 ©2026 Charles Schwab & Co., Inc. All rights reserved. [Member SIPC](https://www.sipc.org/).
+E-0626-04821 REG31752-58 (06/26)
+E-0926-05196 REG31752-59 (09/26)