Haberdashers, Porsche dealers and wrist-watch retailers, brace yourselves: The bonuses on Bay Street are coming down quickly.
Results in recent days from Canada’s two biggest publicly traded independent brokerage firms signal that many of the usual customers who work there are going to have a lot less to spend.
With markets in the doldrums, revenue is tough to find for brokers and pay is dropping.
Canaccord Financial Inc. released quarterly results yesterday that showed that pay per employee in its Canaccord Genuity capital markets division dropped 24 per cent to $63,120 from $80,764 in the same three months of last year. The decline came as the division lost money.
GMP Capital managed a small profit in its capital markets division, but bonuses still declined. GMP’s capital markets division cut paycheques in the quarter that were about 8 per cent smaller, dropping to $113,324 from $123,037, according to an analysis of figures in the firm’s quarterly report.
If the big brokers are paying this much less, you can be sure that most of the dozens of smaller, private brokerages are doing the same or worse.