BEN · 10-K · 2026A · Full report

Operating Expense Trends

FRANKLIN TEMPLETON INC · 2026-11-09 · Importance 43 · Surprise 14 · In source text

Total operating expenses increased 0.9% to $8,239.4 million in fiscal 2026 from $8,166.6 million. Compensation and benefits rose $145.2 million to $3,963.4 million, including a $153.6 million increase in other compensation, primarily from higher termination benefits and deferred-compensation investment gains. Sales, distribution and marketing expenses increased $189.6 million to $2,200.5 million, as asset-based expenses rose $163.8 million with higher related AUM, a richer fund mix and higher marketing support fees. General, administrative and other expenses increased $147.7 million to $922.2 million, including a $100.0 million regulatory settlement and a $33.2 million increase in contingent consideration liability fair value.

Key facts

• General, administrative and other operating expenses increased $147.7 million in fiscal year 2026, including a $100.0 million regulatory settlement, a $33.2 million increase in contingent consideration liability fair value and a $21.5 million increase in fund-related expenses. source
• Acquisition-related retention expenses decreased $87.3 million in fiscal year 2026, primarily due to reversal of $67.3 million of expense upon forfeiture of certain equity awards and lower costs associated with recent acquisitions. source
• Other compensation and benefits increased $153.6 million in fiscal year 2026, primarily due to higher termination benefits and net market gains on deferred-compensation-plan investments. source
• Asset-based sales, distribution and marketing expenses increased $163.8 million in fiscal year 2026, primarily due to a 6% increase in related average AUM, a higher mix of higher-fee funds and higher marketing support fees. source
• Incentive compensation increased $85.4 million in fiscal year 2026, primarily due to higher annual-performance bonus expense, deferred compensation expense and sales-related commissions. source
• Salaries, wages and benefits increased $23.5 million in fiscal year 2026, primarily due to annual salary increases, higher post-retirement benefit costs and Apera-related compensation, partly offset by cost-reduction initiative savings. source
• Occupancy expenses decreased $9.1 million in fiscal year 2026, primarily due to office-space reduction initiatives including consolidation of office space in New York City. source

Impact estimates