Nonproducing BOMs Earn More

It pays not to produce. According to a survey conducted by the Securities Industry Association, nonproducing branch office managers (BOMs) in retail operations earned almost $100,000 more than their management counterparts who still serviced clients in 1997.Nonproducing BOMs reported average W-2 earnings of $374,050, compared with $275,549 for producing managers, the report says. The previous year,

It pays not to produce. According to a survey conducted by the Securities Industry Association, nonproducing branch office managers (BOMs) in retail operations earned almost $100,000 more than their management counterparts who still serviced clients in 1997.

Nonproducing BOMs reported average W-2 earnings of $374,050, compared with $275,549 for producing managers, the report says. The previous year, nonproducing BOMs reported average W-2 earnings of $309,013, compared with $250,826 for producers. That means nonproducing managers enjoyed a 21% hike in salaries in 1997, while producing managers saw their earnings increase 9. 8%.

The average branch had 14.8 reps in 1997, down from 15.5 in 1996. The number of sales assistants per office grew somewhat, to an average 5.9, up from 5.7. Total branch production came in at $5,226,294 last year, down from $5,471, 516 in '96.

The survey is based on compensation data gathered from 50 SIA member firms, representing 3,766 branch managers, 4,271 branches and 52,000 registered represen-tatives (see OddLots, September '98 RR, for data on broker compensation).

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