Pending changes in advisor compensation plans at Raymond James have been “pretty well received,” said chief executive Paul Reilly in a call Thursday with analysts.

The pay cuts will trim the firm’s compensation ratio in its retail business by about a percentage point beginning in September, Reilly said.

Despite the changes, the firm’s payout grids are still “very competitive,” he said, noting that other firms make changes in compensation every year, while Raymond James hasn’t made major changes in about two decades. “We tend not to do that” because it hurts advisor satisfaction, Reilly said.

Reilly and Chief Financial Officer Jeff Julien said some of the savings from the pay changes will be used to cover increased regulatory and technology costs.

As previously reported, Raymond James will be cutting the payout grid in its employee channel by a percentage point or more and moving its independent contractors to a product-neutral grid that will represent a cut in pay for some advisors, depending on product mix. The changes will be implemented beginning in September, the start of its fiscal year.

Meanwhile, strength in its retail business produced a record quarter for Raymond James Financial.
 
The St. Petersburg, Fla.-based firm reported record net quarterly revenues of $1.62 billion for its third quarter ended June, and a record net income of $183.4 million.
 
The results “were largely attributable to growth of client assets as a result of both net recruiting of financial advisors and market appreciation,” as well as strong investment banking revenues and a positive impact from higher short-term interest rates, the company said after the market close Wednesday.
 
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