Edward Jones on Friday fired Alan Skrainka, the general partner in charge of the brokerage firm's market research, who had been with the firm since 1982.
In an internal communication to its advisers last week, Jones said Mr. Skrainka was fired “due to conduct concerning the use of written materials without proper attribution,” according to an anonymous source familiar with the move. It's unclear which research produced by Mr. Skrainka led to his firing.
Jones spokesman John Boul, however, confirmed that Mr. Skrainka was fired for failing to provide proper attribution for material. He was unsure the last time a partner at the firm had been fired.
Mr. Skrainka, who appeared regularly on CNBC and other business television networks, could not be reached to comment. His temporary replacement is Kate Warne, whose title is acting market strategist.
Mr. Skrainka is not the only recent departure from Jones, which is known for the loyalty of its advisers and employees. Michael Sharples, a 17-year Jones veteran rep based in Durham, N.C., resigned and joined
LPL Financial on May 10.
“I was excited to get the opportunity to have a real independent advisory business,” he said, adding that he wanted to start his own firm.
Mr. Sharples declined to state how much in fees and commissions he made while at Jones, but said he was in the top three percent, making him a top producer with Jones.
One source, who asked not to be identified, said Mr. Sharples produced about $750,000 in fees and commission.
Mr. Boul would not comment about Mr. Sharples' production numbers.
Meanwhile, the firm is in the middle of updating its five-year plan, which includes a section titled “brutal facts report.” Mr. Boul said the “warts and all” examination is being conducted to determine if and how the firm needed to change. He would not comment on whether Jones has made specific decisions, saying that the information was proprietary.
The self-examination “is a tremendously positive opportunity to gather ideas, input and insight from a very broad group of extremely talented associates,” James Weddle, the firm's managing partner, said in an e-mail. “The idea comes from Jim Collins, the author of ‘Built to Last' and ‘Good to Great.'”
“Following his philosophy, we have always started our planning process with an analysis of the brutal facts related to our industry, our competitors and our firm,” Mr. Weddle said.
“We regret that [Mr. Sharples] left the firm," Mr. Weddle said. “He had taken over the branch office of a veteran financial advisor who joined firm management.”
Recently, two advisers who produced more than $1.1 million in fees and commissions left the firm, causing some in the industry to question the firm's ability to hang onto top producing brokers. Mr. Weddle noted the annualized attrition rate at the firm was 2.8%.
Jones has 12,600 reps and advisers.
