Finra Freezes Executive Pay as Revenue Declines
July 5, 2017 | by Mason Braswell | AdvisorHub
Seven top executives at the Financial Industry Regulatory Authority earned at least $1 million in 2016 but a 6% decline in revenue has led the industry-financed organization to freeze salaries and promotions in 2017, according to the group’s annual report.
“We expect operating revenue challenges to continue this year” by a projected 1%, Finra president and chief executive Robert W. Cook wrote in the report published on Friday. He attributed the 2016 decline to broad industry trends, specific business challenges and attempts to keep member costs in check.
The “scope of regulatory functions” Finra sells to other exchanges changed under its services agreements, Cook wrote, while a decline in the number of listings for initial and secondary public offerings lowered corporate financing fee revenue. Finra also lowered continuing education fees as it moved to an online delivery format “designed to reduce costs and increase convenience for our members,” he wrote.
The time (at Blue Vault's 2nd Annual Broker Dealer Educational Summit) proved extremely informative.