Edward Jones lost two million-dollar producers in the span of a month. That's a surprise -- given the firm's reputation for holding on to top talent.
Edward D. Jones & Co. LP lost two of its top brokers last month, an unusual blow to the mammoth broker-dealer, which over the years has managed to retain much of its top talent.
Brokers Rebecca Frazier and Brad Hare each produced more than $1 million in annual fees and commissions, said industry sources, who estimated the number of million-dollar producers at Edward Jones at 100 or fewer. In total, the company has 12,600 brokers who operate in individual offices, many in small towns.
Ms. Frazier's “decision to leave is based upon a dispute over issues with management,” said James McKoon, Ms. Frazier's attorney, who declined to elaborate. Ms. Frazier had been with Edward Jones since 1999.
It remains unclear what prompted Mr. Hare's decision to leave the firm. Mr. Hare, who did not return calls seeking comment, had been with Edward Jones since 1997.
Company spokesman John Boul declined to comment on its number of million-dollar-plus producers, as well as on the recent departures. “We don't comment on brokers' joining or leaving Jones,” he said.
Ms. Frazier, who according to sources familiar with the departures produced $1.1 million for the firm, left April 30 to join Bank of America Merrill Lynch in Bristol, Tenn. Mr. Hare left Edward Jones on April 16 to join Morgan Stanley Smith Barney LLC in Beavercreek, Ohio. His specific production at Edward Jones wasn't clear at press time.
Both Merrill Lynch and MSSB are offering upfront pay packages that could total as much as 330% of a broker's annual pay to join. Recruiters said the two brokers face cultural hurdles of working in branches rather than individual offices.
Edward Jones' losing two big producers in such a short period of time is unusual, said industry recruiters.
The company is not a member of the protocol for recruiting brokers, which stipulates that firms refrain from suing one another when brokers leave to join rival firms. Some broker-dealers that recruit from Edward Jones do so with the utmost care for fear of a lawsuit, they said.
