In a move that goes against the grain of broker compensation trends, Philadelphia-based regional Janney Montgomery Scott has increased payouts on agency stock business and managed accounts.
Beginning this past month, payouts jumped from 37 percent to 40 percent for producers with gross commission of at least 40,000 dollars a month. The firm also upped its deferred bonuses, paid to reps who do more than 300,000 dollars gross.
Several wirehouses have implemented plans to provide greater incentives on fee business, but have generally cut pay on transaction business. For example, Prudential this year began offering a five-pointhigher payout for fee production.
"There's room at this firm for people who are stockbrokers," says Ashton Eldredge, a senior vice president at Janney. "We don't try to direct brokers into any one area."
The pay boost is also designed to improve recruiting. Janney's payout grid hadn't been changed in 18 years, Eldredge says, and needed to be more competitive.
"I think that Janney is making a statement that it really believes in its people," says one Janney producer. "It wants to make sure it retains them and attracts as many new people as possible."
The firm's retail sales force grew from 760 brokers in 1998 to 830 by the end of 1999. The firm has focused on expanding in Florida, and is eyeing northern New England as its next expansion target, Eldredge says.