(August 9 – 11:15 ET) – The Securities Industry Association in the United States reports that retail broker commissions rose an average 5.8% in 1999, while broker pay is up 3%.
According to the SIA, registered reps’ gross revenues and earnings climbed for the fifth consecutive year. The SIA’s Report on Production and Earnings of Registered Representatives 1999 found that average gross commissions and fees for retail brokers increased from $430,072 to $455,004 (all figures in U.S. dollars). Average W2 earnings rose from $168,726 to $173,850. Median gross commissions and fees increased 4.8% from $334,397 to $350,566, while median W2 earnings increased 3.9%, from $116,917 to $121,448. The average and median payout rates in 1999 were 37.3% and 36.4% respectively, up slightly from 1998. The gains are primarily due to record trading volume in 1999 and strong markets.
The survey also found that fee-based products now account for 18.2% of total gross commissions, up from 17.8% in 1998. The size of the average retail branch increased to 15.4 brokers, 6.4 sales assistants, and $6.4 million in gross commissions and fees. Almost 46.2% of the reps covered by the survey have been in the industry at least 10 years. Rep turnover was 14%, and the average length of time working at the current firm was 7.9 years.
The results are based upon responses from 46 firms, which collectively employ 53,000 brokers, or about 33% of the 161,915 brokers employed by SIA member firms.
“Registered representatives have met the challenge of continuing to deliver the high level of service customers demand as their business expands rapidly. Their success shows the value of advice,” said SIA president Marc Lackritz.
-IE Staff