Account Managers’ Compensation
The following describes the compensation policies for certain field Account Managers of PIMCO Investments LLC (“PI”).Footnote1
We provide below general information on how Account Managers are compensated. The compensation plans for our Account Managers change from time to time. The information provided in this disclosure was last updated on March 19, 2025.
Compensation Components
Compensation for the PI Account Managers discussed in this disclosure has four main components: base pay, quarterly incentive compensation, an annual discretionary bonus, and certain special bonuses/commissions.
Base Pay
All PI Account Managers receive some amount of base pay — a predetermined and fixed annual salary paid in bi-weekly installments. From time to time, PI reviews the minimum base salary to confirm it is consistent with a reasonable wage and that there is an appropriate ratio between base salary and the other three compensation components.
Quarterly Incentive Compensation
Account Managers are eligible to receive quarterly incentive payments for the sale of certain products, including mutual funds, ETFs, interval fund, private funds, and retail separately managed accounts (i.e., wrap accounts). Account Managers do not receive higher compensation for selling fund classes with distribution fees, for sales at approved firms. Additionally, Account Managers receive the same incentive compensation for products eligible utilizing the same investment strategy (i.e., Total Return, Short Term, etc.). Account Managers employed by PI are eligible to receive compensation, ascending by product categorization, with respect to sales based on strategic priorities (which change from time-to-time by PI) and can be adjusted based on achievement of goals and net flows. PI only distributes investment products managed by PIMCO, and accordingly Account Managers compensation does not distinguish between proprietary and non-proprietary products. PI reserves the right to determine the amount of compensation payable to Account Managers in its sole discretion.
Annual Discretionary Bonus
Account Managers are eligible to receive an annual discretionary bonus. The annual discretionary bonus is determined through numerous factors, including a manager’s assessment that takes into consideration the Account Manager’s job and sales performance, both in absolute terms and relative to other Account Managers, as applicable, as well as PIMCO’s and PI’s performance. PI may use various metrics to assess or compare the job performance of Account Managers. Such metrics generally are indicative of the Account Manager’s success in the areas of, among others, financial advisor satisfaction and the Account Manager’s product knowledge, responsiveness, and effectiveness. Annual discretionary bonuses may form a significant part of an Account Manager’s overall compensation. Additional information regarding annual discretionary bonuses is included under “Potential Conflicts of Interest” below.
Other Compensation
From time-to-time PI Account Managers may receive special bonuses, including monthly bonuses, or other rewards in connection with PI incentive programs that reward certain performance-related metrics. Account Managers may receive commissions from the sale of other products, including closed-end funds, whose commission rates may be higher than those product types noted above.
Potential Conflicts of Interest
As described above, PI Account Managers are eligible to receive compensation, in addition to their base pay, which could represent a significant portion of an Account Manager’s compensation. A factor that is evaluated in determining such compensation is the Account Manager’s success in marketing and selling products distributed by PI. Account Managers may have a financial incentive to offer certain types of products to you, the financial professional, and the offering of such products may be considered, among other factors, in the assessment of an Account Manager’s performance.
As described above, Account Managers who offer certain products may receive compensation as a direct or indirect result of a financial professional’s selection of those products, which could represent a significant portion of an Account Manager’s compensation; an Account Manager’s quarterly bonus could be reduced depending on the size of a transaction or transactions and the composition of the Account Manager’s net sales for the year-to-date period. This compensation may be more than what the Account Manager would receive if the financial professional had selected other products. Therefore, Account Managers may have a financial incentive to offer certain products. For example, Alternatives Strategies offer higher compensation than Active ETFs, which offer higher compensation than Strategic Strategies, and so on, as noted above. Under policies applicable to all Account Managers, no Account Manager is permitted to promote, recommend, or solicit the sale of one product over another solely because that product will provide higher revenue or compensation to the Account Manager, PI, or PIMCO. Please review all product materials and disclosures before selecting an investment product.