By James Langton

(November 16 – 12:40 ET) – A proxy statement filed by Dain Rauscher, recently acquired by Royal Bank, reveals how its retail brokerage division stacks up with RBC’s Canadian unit.

The Canadian division has better margins, earning $141 million before taxes on revenues of $674 million over the 12 months ended July 31, compared to Dain, which earned $78 million on revenues of $636 million. (All figures in U.S. dollars.)

However, Dain brokers are more productive. DS has 1,457 advisors managing $71 billion of assets. Its brokers generate about $462,000 in revenue per broker. Dain has 1,122 brokers managing $68 billion. Dain brokers generate about $567,000 in revenue per broker.

In the proxy, Dain portrays itself as a place that allows brokers to be objective and entrepreneurial, while providing brokers with value-added services and accessible management. The firm claims to have a “broker centric” strategy. “Our focus is investing in and supporting your business, so you can provide the best products and service to your clients,” it says.

The firm notes that it has no proprietary mutual funds; it offers its own research and that of Goldman Sachs and CS First Boston.

The firm also notes that it has spent $26 million on technology last year and will spend $39 million this year. Each Dain branch has an assigned trainer to help brokers and client associates enhance productivity through technology.

Dain touts a single commission grid not differentiated by product, including up to 45% payout, 4% bonus paid to a deferred compensation account, and additional bonuses for growth and service.

The firm currently offers a deferred compensation plan through which brokers can contribute up to 15% of all compensation over $100,000. It currently matches all employee contributions and bonuses paid to the plan, although it says it is “reviewing the deferred compensation plan design for 2001 as a result of the pending RBC acquisition”.

According to an example given in the proxy, a $500,000 producer would receive net commissions of $215,000, as well as a $5,000 cash growth bonus, deferred compensation plan bonuses and matches of $19,731, and $5,250 in 401-k matching contributions for total compensation of $244,981.

Dain claims that this puts ahead of major rivals on similar production amounts. It says that based on available information, $500,000 producers at Morgan Stanley Dean Witter earn $214,868, at Salomon Smith Barney its $231,891, PaineWebber brokers get $234,532, and Merrill Lynch brokers earn $198,688.