At Edward Jones, profits, pay slide - Kansas City Business Journal:

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The filing also said the Edwarsd Jones operations in Canada andthe U.K. are not profitable and may never be, and the estimatexd cost of its headquarters redevelopmenty has risenby $95 to $355 million. Jim Weddle, managing partner and chief executive, received totakl compensation of $6.66 million, down 38 percenrt from $10.78 million in 2007. Steve Novik, former chief financiap officer, received $4.57 million, down 43 percenf from $8.08 million. Gary Reamey, generall partner in charge ofCanadian operations, received $5.4 8 million, down 43 percentg from $9.66 million. Norman Eaker, generapl partner in charge of firm received $5.37 million, down 38 percent from $8.62 million.
Brett Campbell, general partner in charge of clien solutions, received $5.26 million, down 33 percent from $7.9 million. Novil retired Jan. 1 and has been succeeded by Kevib Bastien. Like most financial services Edward Jones is feeling the effectsx of themarket downturn. “Although Edward Jones is a specialcase — it’s a privately held partnership, not a publiclyg held corporation — what you see at Edward Jonew is what you see with any companh in the financial sector,” said Briann Betker, chairman of the finance department at ’s . “Sincer performance in the financial sectorwas abysmal, bonusez are down.
” Even though it’s a privat company, Edward Jones must file with the SEC because it has so many shareholdee partners: 337 general partners and 11,000 limitedd partners. “Our partners are compensated based on the capital they have invested inthe firm, and the returbn to them is based on the profit we return,” said John manager of global media relations for Edware Jones. Total compensation for the top executivee is primarily net income allocated togenerap partners, but it also includes smaller amounts in deferre compensation and base salary. Weddle’s base salary is the base salaries of the other fourare $175,0000 each.
The Edward Jones partnership’ws profit margin based on incomwe before allocations to partners decreasedfrom 12.3 percenty in 2007 to 8.1 percent in 2008. Net revenued decreased 7 percent, or $287.8 million, to nearluy $3.9 billion, and income before allocation to partneras decreased39 percent, or $196.45 million, to $311.8 million. “The partnership’ds decrease in net revenues was primarily due to reducectrade revenue, net interest income, asseg fees and other revenue, partiallu offset by an increasee in account and activity fee revenue,” the compang said in the SEC filing. Commission revenue decreased 15 or $271.6 million, to $1.
6 “When are the bigger bonusesa going to come back? When the financial markets come back,” Betkerd said. “Anyone who says they know is making a wild Edward Jones, with 40,000 employees, added 953 financial advisers in 2008, for a total of a 9 percent increase. It had 10,878 brancb offices as of Feb. 27, and plans to add as many as 500additionak branches, each staffed by a financial adviser and an by the end of the Of the current branches, 9,978 are in the 602 are in Canada, and 298 are in the U.K. But the operations are money losers.
“The partnership’sz foreign operations are not yet they will require significan infusions of capital and may neverrbecome profitable,” the filing said. The company also disclosedr that the cost of its West County expansionb has risento $355 million. “Thde $260 million estimate was based on real estatsand buildings, not what goes inside,” Boul said. “Itr did not include furniture, fixtures and such as computers andothe technology. It’s not a bad it’s an investment. We’ll be better-positionedd when the economy improves.
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