Retail broker production and pay hit yet another record high in 2000 — the sixth consecutive year of higher commissions, fees and earnings, according to the SIA.
The SIA's Report on Production and Earnings of Registered Representatives shows that median gross commissions and fees increased 4.4% from $350,566 in 1999 to $366,042; median total earnings rose 8.8% from $129,325 to $140,744.
The median payout rate last year was 36%.
Fee-based products accounted for one-fifth of retail reps' total revenue, rising from 18.2% to 20.1% of production.
Other survey highlights:
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Broker turnover was 14.3%; average length of time working at their current firm was eight years.
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The average retail branch had 14.6 registered reps, 6.7 sales assistants, and average gross commissions and fees of $6.2 million.
These results are based on responses from 45 SIA member firms, which collectively employ more than 55,000 reps.
This year, broker earnings are expected to be down. For example, Morgan Stanley's commission business was down 14% for the six months ended in May, as was Merrill's for the six months ended in June.
For the latest industry news, see RR Online Exclusives at www.rrmag.com.
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