Raymond James Financial executives pushed back on investor concerns about rising recruiting expenses, framing the increase as evidence of sustained, disciplined growth rather than short-term spending, as reported by AdvisorHub. Speaking with analysts, company leadership emphasized that consistent investment in advisor recruitment reflects strategic expansion, not opportunistic hiring.
AdvisorHub reports that for the first time, Raymond James separately disclosed recruiting and retention costs, reporting $107 million in the final quarter of the year. That figure marked a 22 percent increase from $88 million in the same quarter one year earlier. The expenses relate to cash and equity awards that vest or pay out over multi-year periods, typically spanning five to seven years.
According to AdvisorHub, Chief Executive Officer Paul Shoukry urged analysts to view those costs in light of the firm's broader hiring results. Over the past 12 months, Raymond James recruited advisors generating $460 million in annual revenue. Shoukry described that level of production as comparable to a meaningful acquisition, while stressing the firm's preference for recruiting advisors individually to ensure cultural and strategic alignment.
Raymond James has focused heavily on recruiting independent advisors, including those departing Commonwealth Financial Network following its acquisition by LPL Financial, as reported by AdvisorHub. The firm has also intensified recruiting efforts in the West and Northeast, regions where it historically lagged.
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