Edward Jones Awards New Chief, Penny Pennington, $11.7 Million
Penny Pennington, the new managing partner of Edward Jones and its parent Jones Financial Cos., received a 10% pay hike to $11.67 million, the biggest U.S. broker by number of advisors said in a regulatory filing.
Pennington, 55, received $11.5 million in cash payments tied to her partnership interest in the St. Louis-based company, which she joined as a broker in 2000. She has been a general partner of the company since 2006.
All of Jones’ 2018 net income of $990 million was reserved for its partners, with $749 million allocated to its elite group of general partners, according to the company’s 10-K annual report filing on Thursday.
Jones as of late February had 455 general partners and 24,761 limited partners, including many of its brokers, according to the filing.
Pennington, who is also the partnership’s chief executive officer, is Jones’ second-highest paid executive, according to the filing. Kevin D. Bastien, 53, who has been chief financial officer since 2009, was paid $13.4 million in 2018 compensation. He has been a general partner since 1998.
The company’s 2018 income rose 13.5% from 2017, on revenue that jumped 12.8% to a record $8.5 billion.
Jones has been rapidly growing its network of small offices across the U.S. and Canada. It ended 2018 with 17,615 financial advisers in 13,828 branches.
The advisor total grew by 9%, or 520, from the end of 2017 while its branch count was up 5%, according to the filing.
Pennington in January succeeded James D. Weddle as Jones’s managing partner. Weddle, a 42-year firm veteran who reached its mandatory retirement age of 65, received $11 million of compensation for 2018. He was paid $11.4 million in 2017, according to the filing.
If my math is correct, for 2018 the average bonus was:
General Partner = $1,646,154
Limited Partner = $9,733
I wonder if the LP’s even know about this disparity?
Today Penny announced that all branch office administrators and certain home office associates, (non-exempt) would income, bonuses, raises, would be frozen for one year. No overtime allowed. No mention of General partners or executive committee members taking a pay cut! Every edwardjones employee should be outraged and stand up for those essential employees who are grossly underpaid and live paycheck to paycheck. Outrageous for those who make millions per year to abuse those who earn $17 – $24 per hour. Try it without us!
Thank You Nancy! As I was doing additional research, I noticed this was a 2019 article. March 13, 2020 Penny gave herself a 27.5% raise to equal $14.4 million a year. You are so correct! Try it without us.
I am hoping more people will see this and realize what is happening within Edward Jones.
Former Jones lifer – my thoughts precisely! And as you know, the answer is, Jones FAs are blindly loyal ! I’ll admit it, I was too as a fellow Koolaid drinker … but have wised up, as a content Independent looking in. The Jones Div trips just don’t do justice, given this disparity. If they only knew!!
In all fairness, it’s important to note that GP’s have unlimited liability, including their own personal net worth. On the other side, LP’s liability is limited only to the extent of their partnership investment. (the full amount could be lost, but that is it)
That being said, my experience was that most FA’s didn’t know the difference between GP and LP legal liability, and definitely are NOT told how much the GP’s make! Or how much the RL’s are compensated, either… it’s kept a big mystery!
I’ve found GP RL’s to be fairly open and candid regarding their partnership take. It’s one of the carrots they dangle to encourage growth to FAs that have GP aspirations.
Of course they sometimes have to dangle the carrot; any Fortune 500 company has to motivate/push aspiring future leaders to keep the company growing in order to keep paying their ongoing bonuses. (Just look at the current Wells Fargo situation about pushing growth at all costs) But what about all of those “rank-and-file” FA’s and BOA’s that the GP’s more-frequently interact with? And most of those employees are NOT partners…
The unlimited liability was changed years ago. Quick review at one time 90 percent of net income went to general partners. The lp structure really is a participating note. Nothing more.
Steve, thank you for that insight about no longer being unlimited liability. I don’t recall that change ever being broadcast to Jones employees. Might you elaborate?
Nice to see Jones rewarding themselves lavishly!! How about lower rates or something for your customers?? Financial institutions are all the same..greedy!!
Coincidentally, after getting a scolding earlier this week by Congress, today Wells Fargo CEO Tim Sloan was awarded a 5% raise – to $18.4 million, including a $2 million bonus. You can’t make this stuff up. No bad deed shall go unrewarded, I guess…
They are still hiring MHM. Fire up your resume pen. By the way, you want lower rates? They provide investments, your rates on your investments are a little too high are they?
Financial security comes at a cost foresure. I am very happy with my financial advisor knowledge and service providers kudos to Edward Jones!
How is EJ addressing the gloal economical reset? NESARA AND GESARA. And.i don’t want to hear its a.conspiracy theory . It has been launched in europe