Raymond James & Associates is cutting its compensation grid by a percentage point or more beginning Sept. 25, the start of its fiscal year.
In a brief statement to the media, the firm said the cut will amount to a percentage point for about three-quarters of its advisors.
Company spokespeople declined to discuss details, but according to one source at the firm, advisors producing between $250,000 and $300,000 annually will see their payout cut to 28 percent from 32 percent. Those above $5 million in annual production, where payout tops out at 50 percent, will not see a change, this source said.
An announcement to advisors was made by the company on Monday.
The pay cut was triggered by rising costs to maintain service levels, upgrade technology and to adjust for increased compensation costs due to higher average production.
Pay hasn’t been adjusted in almost two decades for advisors producing more than $300,000, the firm said. In 2013, it went to a product-neutral grid, the company said.