Retail brokers' average earnings rose 10% last year, to a record $128,600, according to the Securities Industry Association.
The average earnings for institutional brokers climbed 12%, to $304,700, the New York-based trade group said.
The association said the survey was based on compensation at 72 sales firms, including several operated by banks. The survey looked at gross earnings, including bonuses.
Median earnings for the surveyed retail brokers increased by 15% in 1993, to $90,000. Median earnings for institutional brokers rose 18%, to $183,200.
The retail payouts are higher than those typically received by bank investment representatives.
Their average earnings are closer to $65,000 or $70,000, observers say.
The disparity exists because banks often use less seasoned representatives than securities firms and are less demanding of them, said Ed Mungenast, president of Securities Consultants, Boca Raton, Fla.
"If brokers at wirehouses don't meet certain minimums, they're let go," Mr. Mungenast said. But the gap is starting to close, he added. "Many banks are starting to raise their level of expectation." High trading volume and soaring stock prices accounted for much of bank and brokerage representatives' earnings, said Jeffrey M. Schaefer, the association's vice president for research.
The Dow Jones industrial average, a closely watched barometer of stock prices, rose 14% in 1993, while the Standard & Poor's stock index increased by 7%. The increases are reflected in the amount of business brokers booked.
Median gross production on the retail side rose 14% to $225,000 in 1993, while institutional production increased 21% to $615,400.
