DEFINITION of 'Account Executive'

An account executive is a person who has primary responsibility for an account, whether it be for an individual or corporate client. Generally applied to anyone who handles a sales relationship, it is often used in the advertising and public relations business, and in financial services.

BREAKING DOWN 'Account Executive'

An account executive is the primary contact person for a relationship between the vendor and customer. The account executive calls upon a client to introduce new products and services, arranging for technical, design or other support staff to travel with him or her to conduct show-and-tell demonstrations and help with the sales pitch. The account executive negotiates deal or transaction terms and once business is secured, it is the responsibility of the executive to make sure the client is satisfied on an ongoing basis. Under internal company guidelines or those mandated by regulatory authorities such as FINRA (e.g., Rule 3220 - applicable to broker-dealers and investment advisors), account executives are encouraged to build closer relationships with clients by taking them out for meals and entertainment.

Account Executive Responsibilities

Account executives are usually expected to develop new business by themselves, often with annual quotas, but they also could be assigned new clients by the company. An account executive could be assigned one very important client, who would be given the red carpet treatment, or the executive could have multiple clients that he or she must prioritize in terms of sales-generating importance. An account executive would handle the advertising needs of food and beverage company, for example, the cybersecurity hardware and software needs of a bank, the pharmaceutical needs of a hospital group, the wealth management needs of a private client or the prime brokerage service requirements of a hedge fund. Compensation for the executive is typically a base salary, sales commission and bonuses for reaching or exceeding sales targets.

  1. Best Execution

    Best execution is a legal mandate that dictates brokers must ...
  2. Accountant Responsibility

    The ethical responsibility that an accountant has to those who ...
  3. Executing Broker

    An executing broker is a broker that processes a buy or sell ...
  4. Execution

    Execution is the completion of a buy or sell order for a security.
  5. Primary Account Holder

    A primary account holder is the individual who is legally responsible ...
  6. Discretionary Investment Management

    Discretionary investment management is a form of investment management ...
Related Articles
  1. Financial Advisor

    Asset Manager Ethics: Placing and Managing Trades

    Five guidelines have been created to assist asset managers on the best practices for placing and managing trades in client accounts.
  2. Financial Advisor

    Losing a Client Is Not Always The End of The World

    Losing a client is never pleasant for a financial advisor, but sometimes this is a better outcome than continuing the relationship.
  3. Financial Advisor

    Manage Your Clients' Expectations

    You can't control how they react to the market, but you can help them understand the reality of the situation.
  4. Financial Advisor

    What Is Your Client's Willingness and Ability to Take Risk?

    Financial advisors must carefully consider a client's willingness and ability to take investment risks, including tax concerns and liquidity needs.
  5. Small Business

    How Often Should You Contact Clients?

    Figuring out how often an investment advisor should contact clients is not easy.
  6. Financial Advisor

    How Advisors Should Prep for an Initial Meeting

    First impressions count, so prepare well for your first meeting with a client. Get to know as much as you can about the person and be ready to answer questions.
  7. Tech

    Tips for Breaking the Ice with New Clients

    Tips and methods to ensure a successful start to client/advisor relationships.
  8. Financial Advisor

    The Upside of a Client Service Associate Career

    Client service associates play a vital role in the financial industry. Here's the lowdown on this position and what it can offer.
  9. Financial Advisor

    10 Topics to Discuss at an Initial Client Meeting

    These are 10 topics that should be discussed during the first meeting with a client.
  10. Financial Advisor

    Advisors: Avoid these Common Mistakes

    Every financial advisor should work hard to avoid these common missteps.
  1. How much will it cost to hire an accountant to do my taxes?

    Find out how much it costs to hire an accountant and what benefits and services you can expect from your accountant. Read Answer >>
  2. What is cost accounting?

    Learn about the main benefits of cost accounting systems, how they are different from financial accounting and why they are ... Read Answer >>
Hot Definitions
  1. Working Capital

    Working capital, also known as net working capital is a measure of a company's liquidity and operational efficiency.
  2. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
  3. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
  4. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
  5. Price-Earnings Ratio - P/E Ratio

    The Price-to-Earnings Ratio or P/E ratio is a ratio for valuing a company that measures its current share price relative ...
  6. Internal Rate of Return - IRR

    Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.
Trading Center