It may not have been a good year for the stock market, but 2000 produced the sixth consecutive year in which brokers enjoyed a pay boost.
SIA credited the increases to last years record trading volume. In 2000, average daily share volume on the three major markets jumped by more than 48 percent. At the same time, the number of financial consultants increased by just 17 percent.
"Individual investors needed guidance during a year of record volatility, and registered representatives continued to provide it," said SIA President Marc E. Lackritz.
Other report highlights:
- Brokers continue to use more fee-based products in their overall investment mix. Managed accounts and fee-based products now account for about 20 percent of reps totals gross commissions and fees, up from about 18 percent in 1999.
- The median payout rate for brokers was 36 percent last year; the average payout was 37.6 percent.
- About 14 percent of brokers changed firms or quit the business last year, while the average broker had been working at his current firm for eight years.
- About 44 percent of reps from the firms that were surveyed had been in the industry for 10 years or more.
The trade group surveyed 45 of its member firms, which had a combined pool of more than 55,000 registered representatives and more than 4,000 branch managers. The full 156-page report is available for purchase.