Is Jones cutting its grid?

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Dec 20, 2008 12:41 pm

Is Jones making cost cutting moves like everywhere else? As a former Jonesie I cant imagine they are not doing something. I heard the bonus bracket was at 0. Any Jones person with thoughts?

Dec 20, 2008 1:17 pm

We are in the 0% bonus bracket.  We don't (and never had) a "grid" unless you are typing about some type of free accounts from an existing FA.  If you are really ex Jones (or you redefine "grid") you already knew this.  No, we are not changing payouts.  Before you come after me, grid is in your topic title.

Dec 20, 2008 5:19 pm

Actually Jones does have a grid. It pays different net commissions on different products (B shares, stocks, etc). Also, the rest of the industry uses the term "grid' to reference payout to brokers...only Jones uses its own language to describe such mundane concepts.

Jones' silence in reference to its capital condition to its workforce is deafening. Ask a GP what their exposure to GMAC is and you will get a "this is information we are not disclosing at this time" answer.

Dec 20, 2008 6:09 pm

Actually you are wrong. Jones talks about its capital condition on a regular basis. Our coverage ratios far exceeds industry requirements. Weddle regularly updates us on the capital condition, and they give us links to their SEC 10Q/K filings every quarter.



Dec 20, 2008 6:37 pm

When I left from Ca. there was a grid. If you did over 100k you made 37% vs if you did over 1mill you made 39.5%. Also how many of you sold 30 year cal munis that you took 3 pts from that are worth 70 cents? Lastly hiw many of you. Are doing the managed fund business?

Dec 20, 2008 6:57 pm

Also, are they going to continue paying $ to goodknight vets to do a goodknight? Makes you think at the zero bonus how long the producers will let this happen. What is the lp return right now? My point is Jones is not imune to this economic downturn because the didnt do subprime derivitives.   

Dec 21, 2008 12:13 am

The problem with the bonus bracket system was that even in a 0 bonus bracket the firm is very profitable. I'm no Jones lover, but I'm sure they're fine. You all probably recall they went 0 bonus bracket in 2002 or so near the end of the downturn. 

Dec 21, 2008 2:18 am

Its not the firm Im concerned with, the higher producers who get 50% of profiits. At 0 thats a huge paycut.

Dec 21, 2008 9:17 am

A lot of exposure to Lehman bonds too, a former co-worker of mine had $1.5 million, just in his office

Dec 21, 2008 9:49 am
punkbynature:

Actually Jones does have a grid. It pays different net commissions on different products (B shares, stocks, etc). Also, the rest of the industry uses the term "grid' to reference payout to brokers...only Jones uses its own language to describe such mundane concepts.

Jones' silence in reference to its capital condition to its workforce is deafening. Ask a GP what their exposure to GMAC is and you will get a "this is information we are not disclosing at this time" answer.



As I expected....redefine grid.  A grid needs atleast 2 axis.  The current topic of grids all over this site has been LOS vs Gross Production.  The intersection is your net payout.  Please explain the axis in your example.  Seems to me every FA would get the same pay on those products. 
I will concede the California example.  I can't see California from where I live and I have no idea what is going on there.  I would be curious as to the axis?  Is it just Production?  Is it Production vs LOS vs State Labor Laws?


Dec 22, 2008 10:42 am

There's a difference between Jones clients being exposed to LEH and GMAC bonds and Jones being exposed to those bonds.  If a client's bond goes bankrupt, Jones isn't on the hook for it.  Unless that client for some reason can make a case to the arbitration panel that it was inappropriate for them. 

 
And Jones isn't cutting anything for us as advisors.  The bonus is just that, a bonus.  Does it suck that we're in the 0% bonus bracket?  Yep.  Is Jones still making some money?  Yep.  I'd be more worried if they were making decisions to pay a bonus, but take money out of "savings" for the sake of paying some kind of bonus.  You know as a Jones rep that there will be times like this in your career.  It sucks when it happens, but you just have to figure that next time will be 50%.