Edward Jones Freezes Pay, Suspends Overtime, for Advisor Support Staff
Edward D. Jones & Co. told half of its 49,000 employees on Monday that it is freezing wages and suspending overtime pay for one year in response to the need to continue operating during the coronavirus crisis.
Jones also has imposed a hiring freeze on all positions, except for licensed financial advisors, through the end of May.
“Deemed one of 16 critical industries by the Department of Homeland Security, Edward Jones is committed to remaining open for business while working to reduce risk and combat the spread of coronavirus,” Jones spokesman Alex Reed wrote in an e-mailed statement confirming the actions.
The one-year pay freeze is a “proactive and preventive measure so the firm can continue to meet the needs of its clients while preserving opportunities for all associates now and into the future,” the statement said.
“Outrageous,” a midwestern branch office administrator wrote to AdvisorHub. “Every Edward Jones employee should be outraged and stand up for those essential employees who are grossly underpaid.”
Most of Jones’ 16,958 client associates, called branch office administrators, earn between $17 and $24 per hour, she wrote. She communicated anonymously out of concern about job security.
Jones Financial Co. is the last sizeable Wall Street brokerage firm to operate as a partnership. Its managing partner, Penny Pennington, received $14.4 million in 2019, or 194 times greater than the median employee’s $75,543 compensation, according to the company’s annual report filed earlier this month.
The $2 trillion stimulus package President Trump signed into law last week expands unemployment benefits and offers hundreds of billions of dollars in tax breaks, zero-interest loans and other aid to small businesses and companies in distressed economic sectors.
In response to the pandemic, Jones is offering ten additional paid time-off days to associates who are “personally affected” by the coronavirus, “waiving deductibles for COVID-19 testing” and offering “new wellness resources and virtual doctor visits,” the company statement said.
Jones in recent days instructed its home-office employees to work from home, although some have been “redeployed….to service areas to meet the most critical needs of clients and branch teams,” it said.
The company two weeks ago told brokers to work only “virtually” with clients and prospects as part of a nationwide effort to curb the spread of the pandemic by employing social distancing. Unlike firms with larger branches that are encouraging at-home work or splitting in-office work cycles, Jones still encourages brokers and branch administrators to work from their offices, within limits of local government edicts.
Royal Bank of Canada on Tuesday assured employees, including its 2,000 U.S.-based brokers, that it will not impose layoffs through the end of the year.
“[W]hile we’re all living in stressful and uncertain times, we don’t want RBC employees to worry about their jobs,” RBC President Dave McKay wrote in a memo.
Morgan Stanley, Wells Fargo & Co., Bank of America and UBS Group AG also have reassured employees that they will not impose layoffs in the near term.
“Outrageous,” a midwestern branch office administrator wrote to AdvisorHub. “Every Edward Jones employee should be outraged and stand up for those essential employees who are grossly underpaid and live paycheck to paycheck.”
If those “essential” employees actually feel that they are ‘grossly’ underpaid, who exactly is holding the gun to their heads to make them stay at that job? Grossly underpaid as compared to what? Some of those admins think they are WAY more important and irreplaceable than they are. And, if they are living paycheck to paycheck, whose fault is that? It certainly isn’t the firm that is providing their income. If they don’t like what they make, perhaps they should have opted for either a different job or perhsps made better decisions about their education.
At many firms, the broker is supplementing the wages of the sales assistants: either fixed amount or a percentage of the brokers’ gross. The job is not one which requires vast skills.
This job does require vast skills. The firm underpays the sales assistants for everything they do, especially now that they’re putting themselves at risk of the Coronavirus.
“At many firms” is not Edward Jones. You obviously have no idea of how their offices work, how the BOA’s are paid and the work that a well qualified BOA does on a daily basis. I guarantee that if someone told you that a financial advisor is a job that doesn’t require “vast skills” you would be screaming.
I agree. Most BOAs in my region have undergraduate and graduate degrees. The only reason they are not Financial Advisors is because they are women. The culture, while trying to be inclusive and diverse, is failing because of the Paternalistic culture that is being passed on to new FAs by misoginistic mentor advisors, regional leaders, General partners and executive committee.
You misquoted the article. Nowhere did he or she say they were living paycheck to paycheck. My experience with the support staff has been more valuable than with the advisor in many instances. Support staff are exposing themselves by being on the front line, sitting in offices alone. They are taking the risk and now their wages have taken a hit.
Exactly right. Just more typical narcissism from FAs.
Sounds like a comment from to home office. These BOAs are very hard working and grossly underpaid. Many are severely mistreated by their advisors they work for. Go to Glass Doors and read the reviews.
I live on my monthly payment each month. This is my only income. Am I supposed to starve to death? This is not right.
The admins ARE REALLY important, The advisor’s don’t want to (and most of them don’t know how to) do what the admins do. If they aren’t important why would the organization insist on having one in the office with the advisor? THE company knows…it’s on the advisor to offset the salary. What is YOUR definition of grossly underpaid? Could you support a family on $17.00 an hour? That’s barely a livable wage for managing an office, especially when nearly EVERY aspect of the job is put on the office managers and not the advisors. When a ‘middle to late’ career person is hired into a supportive role they are led to believe there will be bonuses that will make up a livable wage-much like wait staff at restaurants depending on tips. While nobody is ‘holding a gun to anyone’s head’, they are led to believe the overall compensation will be more, only to find out it after hire that it’s at the advisor’s discretion and the LARGE majority of them give what they want, not what’s recommended, which is normally below the recommendation-because they don’t have to. I take it you have never had to struggle financially.
Exactly right. My advisor increased his revenue by over 30% last year. Did I receive anything for helping him do that? Nope. Nada. Not one dime. And “former employee” is exactly right. Advisors, like Intrepid, would have no idea how to do our job and couldn’t function without us. Intrepid, just slither away. You are a narcissist like most FA’s and can’t see past your own nose.
After my grandparents passed there was 350K in stocks like Pope and Talbot ect when I called with my attorney they said someone had already cashed it out and could not provide a reciept nor a date I’m the only heir….then they sent me to a telephone call to India my grandfather’s own attorney gave me the portfolio pretty sure I’m going to need attorney general on this one
You must be a privileged white male, born on third base, but believing he hit a triple. You fool! wake up and see the world as it is. The paternalistic, misoginistic culture of EJ is stuck in the belief each employee is “family”. An employee can like working for a company and still see room for improvement. Especially women, 99% of the Branch Office Admins. If 99% were men, it would be an exempt position paying six figures.
the author of that comment has a master’s degree with honors, more education than the FA. However, as a woman, she was told not to bother trying to be a FA.
Interesting that Edward Jones is freezing raises right after their Managing Partner gets a a huge approx 20% pay increase to almost $15 million a year
OK, A-O-C.
Fascist!
The increase in her pay was based on shares of partnership……if the GP returns goes down because of this her pay will go down drastically. Just how it works.
It is pure greed.
Penny is unfit to lead l.
Wait until the brokers find out that if they override staff and they go out on disability they have to
continue to pay salary.
Notice not 1 of these CEO have stopped getting paid even though they will be the biggest recipient of
tax dollars! Again the C suite wins and the taxpayer louses.
Anyone outside of the c suite at Jones is a fool to stay there. Underpaid advisors with underpaid staff. As President Trump would refer to it: “A Sh-thole”…
You are 100% correct. This company only car s about GPs.
Cares*
Funny how some of the advisors over there drink that corporate Kool-Aid about EJ being the very best firm in existence. If that were actually true, why do so many of their people leave for greener pastures every year? Could it be that those departing are just all stupid, or might it instead be because they become aware that the firm is good for some and not nearly as good for others?
Claiming that a firm is the “best one in existence” is almost as nonsensical as arguing that one stock is the best one for everyone to own. There is no such thing as a perfect firm, and certainly not one that is “perfect” for everyone.
I work for the same role and I don’t even make 17 dollars an hour. That’s unfortunate. We still encounter clients who try to come into the branch knowing we are closed to the public. My boss is working from home. They announced working from home for Boa’s but it’s not for all of them. Only for high risk areas and people who feel unsafe. They freeze our wages for a year when our managing partners got an increase. We are working the front lines and risking our health to keep our clients up to date while our Fa’s and home office sit at home. Definitely feel appreciated.
And yet you willing took and keep the job.
March 13,2020, 3 weeks ago it was announced that Penny Pennington received a 25.7% raise to total $14.4 million. March 18, 2019 she received a 10% raise.
These first 3 weeks of March 2020 EJ has already reached their asset gathering goal for the month.
Penny, try running this business without us.
I took the job because I have a family to provide for. Thank you for your input. This company would be nothing without us. We do everything and then some for our bosses and clients.
Administrative people and labor in general all seem to think that they are indispensable and irreplaceable, and both assumptions are naive as well as wildly inaccurate. The FAs bring in the revenue, and the BOAs merely do admin work around that. It is FAR easier to replace a BOA. Do you see any firms paying massive transition bonuses to lure BOAs from other firms? Of course not. Anon, you really need to get a ticket for the clue bus as it relates to your importance to a firm.
So why even hire BOA’s then?? why not MAKE the FAs do it all? Oh yea, because they WON’T! DUH…
So facing an uncertain future of an unknown length, Jones opts to hold salaries at current levels without laying off people or “furloughing” anyone and that is a bad thing? I’m humored by the opinions of people who have little knowledge of how the compensation model works. As an FA my comp may go down during this time. (Having my pay frozen at higher levels wouldn’t be such a bad deal but I don’t get that option). I am proud that BOTH of my dedicated branch admin. still have jobs and paychecks and will receive bonuses soon in spite of a freeze. Remember- Jones didn’t lay off anyone during the financial collapse of ‘08. Who else can make that claim? AG Edwards? Wachovia? Merrill?
A pay freeze along with cutting expenses is good business. Freezes can be turned off easily.
A compensation model that pays an increase of 25.7% to 14.4 million. Enhanced with a 10% salary increase in the midst of a financial crisis you are comparing to 08-09? That is a well aligned plan, sign me up.
“I am humored by the opinions of people who have little knowledge of how the compensation model works.”
Why doesn’t Penny Pennington agree to freeze HER salary then? Edward Jones would not be where they are without BOA’s.
Right! You won’t see one GP freeze their “salary.” Won’t also see many FA’s give a supplemental bonus to their BOA’s either.
Who gets the $400 +/- monthly “program fee” that I (and others) pay since I was hoodwinked into agreeing to “Guided Solutions”?
It doesn’t say non profit over the door. You are paying for a service. Do you work for free?
The Edward Jones model is brilliant: The general partnership gives the advisor a no up front direct cost office and pays the salary of the branch administrator directly from head office. Thus the administrator becomes a direct report and becomes a needed source of intelligence for the partnership to control the actions of the advisor. While brilliant, this shortsightedness in cutting the livelihood of the administrator could have long term negative consequences. Times are hard and Jones must take extraordinary cost cutting measures to survive. I fear administrators are likely to bolt en masse once we recover, leaving a scar on the firm. This is crisis management at its worst. Might this action destroy the very model that put Jones on the map? Find another way………
And let’s not forget the wonderful (sarcasm) that EJ gives their BOA’s.
EJ flew me out there several months ago and boy did I dodge a bullet…
I am so Very happy I left 4 years ago. Edward Jones is NOT the same company it was 20 years ago. Too many layers of management. Ted Jones would be appalled at the direction this company has taken. I work at LPL Financial and love it!!!!!! Five of us came from Edward jones out of 7 in our office over the years…..Love it at LPL!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!