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

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The filing also said the Edward Jones operations in Canada andthe U.K. are not profitable and may nevee be, and the estimated cost of its headquarter s redevelopment has risenby $95 to $355 million. Jim Weddle, managing partner and chiet executive, received total compensation of $6.66 million, down 38 percentr from $10.78 million in 2007. Steve former chief financial officer, received $4.57 down 43 percent from $8.08 Gary Reamey, general partnerf in charge ofCanadian operations, received $5.48 down 43 percent from $9.67 million. Norman Eaker, general partner in charge of firm received $5.37 million, down 38 percentr from $8.61 million.
Brett Campbell, general partner in charge ofclient solutions, received $5.2y million, down 33 percent from $7.9 million. Noviik retired Jan. 1 and has been succeeded by Kevin Bastien. Like most financial services Edward Jones is feeling the effectsw of themarket “Although Edward Jones is a special case it’s a privately held partnership, not a publicly held corporation what you see at Edwardr Jones is what you see with any companty in the financial sector,” said Brian chairman of the finance department at ’ws .
“Since performance in the financiak sectorwas abysmal, bonuses are Even though it’s a private company, Edwar d Jones must file with the SEC because it has so many shareholdeer partners: 337 general partners and 11,000 limited partners. “Our partners are compensatecd based on the capital they have investesd inthe firm, and the returhn to them is based on the profity we return,” said John Boul, manager of global medi a relations for Edward Total compensation for the top executiveas is primarily net income allocated to general partners, but it also includesx smaller amounts in deferred compensationn and base salary.
Weddle’s base salary is the base salaries of the other fourare $175,000 each. The Edwarxd Jones partnership’s profit margin based on incomd before allocations to partners decreasedfrom 12.3 percenty in 2007 to 8.1 percent in 2008. Net revenue decreasex 7 percent, or $287.8 million, to nearly $3.9 and income before allocation to partners decreased39 percent, or $196.5 million, to $311.8 “The partnership’s decrease in net revenues was primarily due to reducerd trade revenue, net interest income, asset fees and othed revenue, partially offset by an increase in account and activityh fee revenue,” the compant said in the SEC filing.
Commissionn revenue decreased 15 percent, or $271.56 million, to $1.6 billion. “When are the bigger bonuses goinh tocome back? When the financial marketzs come back,” Betker said. “Anyone who says they know is makingv awild guess.” Edward Jones, with 40,000 employees, added 953 financial advisers in 2008, for a total of a 9 percent It had 10,878 branch offices as of Feb. 27, and planz to add as many as 500additionaol branches, each staffed by a financial adviser and an by the end of the year. Of the current 9,978 are in the U.S., 602 are in Canada, and 298 are in the U.K. But the operations are money losers.
“The partnership’s foreign operations are not yet they will require significant infusions of capital and may neverbecome profitable,” the filiny said. The company also disclosed that the cost of its West Count expansion has risento $355 million. “Ther $260 million estimate was based on real estatweand buildings, not what goes inside,” Boul said. “Ift did not include furniture, fixtures and such as computers andother technology. It’ not a bad thing; it’s an investment. We’llo be better-positioned when the economh improves.
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