RT Journal Article SR Electronic T1 Compensation of Investment Advisors JF The Journal of Investing FD Institutional Investor Journals SP 80 OP 86 DO 10.3905/joi.2018.27.1.080 VO 27 IS 1 A1 Kyre Dane Lahtinen A1 Stephan Shipe YR 2018 UL https://pm-research.com/content/27/1/80.abstract AB The use of an investment advisor presents an agency problem: The firm works in the client’s interest while also managing its own growth. We use a dataset of over 30,000 advisor-year observations to investigate the potential for agency problems in the analysis of investment advisor firm characteristics. The compensation structures of investment advisors are not homogenous, varying by services offered. In addition, firm size is a large factor in determining the number of clients an advisory employee serves. This analysis lays the foundation for understanding the compensation component of the investment advisor relationship and the associated agency problem.TOPICS: Manager selection, currency