Registered reps in the United States generated higher commissions and fees and derived greater earnings for the sixth consecutive year in 2000, according to the Securities Industry Association’s Report on Production and Earnings of Registered Representatives.

Average gross commissions and fees for retail reps increased 6.7% from 1999’s $455,004 to $485,478. (All figures in U.S. dollars). Average total earnings rose 9.6% from 1999’s $182,238 to $199,804. Median gross commissions and fees increased 4.4% from $350,566 to $366,042, and median total earnings rose 8.8% from $129,325 to $140,744.

“Firms’ commitment to delivering the highest level of service to their customers was reinforced in 2000,” said Marc Lackritz, SIA president. “Individual investors needed guidance during a year of record volatility, and RRs continued to provide it.”

Record trading volume on all the markets helped boost the brokers’ earnings in a year when individual investors sought guidance in a volatile market. In 2000, average daily share volume on the three major markets increased 48.3% while the number of reps and other producers increased only 17.3% (based on SIA’s databank covering reports from New York Stock Exchange member-firms that do business with the public).

Fee-based products now account for a fifth of brokers’ total gross commissions and fees, rising from 18.2% to 20.1%. “Firms continue to focus on building long-term client relationships,” said Steve Carlson, SIA vice president and director of surveys. “And RRs are using their expertise to offer clients their guidance to choose from the increasingly diverse range of products and services available.”

The survey also found that the average and median payout rates in 2000 were 37.6% and 36.0%, respectively. About 43.7% of the reps working for participating firms had been in the industry 10 years or more. Rep turnover was 14.3%; and, the average length of time working at their current firms was eight years.

These results are based on responses from 45 member-firms, which collectively employ more than 55,400 registered representatives; they generated more than $26.6 billion in gross production during 2000. Participating firms also employ more than 4,036 branch managers and operate 4,295 branches.