The industry's books bulged bigger than ever in 1999, according to the SIA. Pretax income was 16.3 billion dollars, compared with 9.8 billion dollars in 1998. The previous record pretax income was 12.2 billion dollars in 1997. Data is from 280 public NYSE member firms.
Revenue figures show that asset management fees and commissions outpaced mutual fund commission revenue. Fees climbed 27 percent to 11.5 billion dollars in 1999, from 9 billion dollars in 1998, while commissions grew 21 percent to 29.3 billion dollars, from 24.2 billion dollars. Mutual fund revenue was 6.7 billion dollars, up 7 percent from 6.2 billion dollars the prior year. Total industry revenue in 1999 was 183.4 billion dollars.
Compensation to clerical employees ballooned 45 percent, while rep pay grew only 16 percent. Clerical people earned 32.8 billion dollars in 1999, compared to 22.7 billion dollars in 1998. Brokers were paid 23.5 billion dollars in 1999, compared with 20.2 billion dollars the prior year. SIA researchers say the pay gain among clerical employees may be due to the inclusion of bonuses for clerks and reps, and the impact of the Goldman Sachs IPO.