Edward Jones CEO Pennington Gets 25.7% Pay Raise
Penny Pennington, Edward D. Jones’ first female managing partner, got a 25.7% raise in pay for her first year running the largest U.S. brokerage force, according to Jones Financial Co.’s annual report.
Almost all of her pay—$14.4 million—represents interests in the partnership, which distributes all of its net income to its 473 general partners and 24,273 limited partners. (Just $263,000 of Pennington’s compensation was in salary and deferred compensation.) She was elevated to general partner of the 98-year-old firm in 2006.
Jones is the last remaining large firm on Wall Street to operate as a partnership. Pennington’s compensation was 194 times greater than the median $75,543 compensation of all Jones’ employees—including all partners except for Pennington, according to the report.
“As a partnership, our Managing Partner’s compensation consists of a base salary and returns on her investment in the firm,” Edward Jones spokesman Alex Reed said in a statement. “Her compensation is closely tied to the success of our clients and the performance of our firm in 2019.”
Kevin Bastien, Jones Financial’s 54-year-old chief financial officer, who became a general partner in 1998, earned $14.2 million in 2019, up 6.2% from $13.4 million the prior year, according to the annual report.
Edward D. Jones, the broker-dealer that is the company’s primary business, booked a 9% jump in net profit last year to $1.09 billion from 2018. The bulk of its revenue comes from distributing mutual funds and insurance products through a nationwide network of almost 19,000 brokers in more than 15,000 branch offices.
Pennington, who joined Jones as a broker in 2000 at the start of her career, rose to run training and branch development for the company, and was head of the client strategies group before her appointment to managing director and chief executive in January 2019.
Kenneth Cella, Pennington’s successor in the client strategies role, was awarded $13.1 million for his 2019 performance, up 16% from 2018, according to the annual report.
Pennington’s compensation trails that of the top executives at large investment banks—Morgan Stanley Chairman and CEO earned $27 million in 2019—but surpasses the $13.4 million that regional rival Raymond James Financial awarded to Paul Reilly, its 65-year-old Chief Executive Paul Reilly.
James D. Weddle, Pennington’s predecessor as Jones’s managing partner, earned $11.0 million in 2018 and $11.4 million in 2017.