Waddell & Reed replaces head of its broker-dealer

Waddell & Reed Financial Inc. on Wednesday said that Thomas Butch, the longtime head of its broker-dealer subsidiary, was stepping down, according to a statement from the company. Mr. Butch had a variety of roles at the company, including the president of the broker-dealer, Waddell & Reed Inc. Mr. Butch's total compensation in 2016 was $3 million, according to a filing with the Securities and Exchange Commission. Shawn Mihal is replacing Mr. Butch as head of the broker-dealer. Mr. Mihal, who most recently served as chief operating officer of the broker-dealer, joined the company in March 2015 as chief regulatory officer and chief compliance officer. Mr. Butch joined Waddell & Reed Financial in 1999 and had been the head of the broker-dealer since 2005, according to the firm's BrokerCheck profile. At the parent company, Waddell & Reed Financial, Mr. Butch was executive vice president and chief marketing officer as well as president of Ivy Fund Distributors Inc., a mutual fund company. He could not be reached for comment. At the end of last year Waddell & Reed had 1,780 reps and advisers and produced $487.4 million in revenues, according to InvestmentNews data. Like many broker-dealers, it has recently seen a decline in revenues due to falling commissions in the wake of new industry regulations including the Department of Labor's fiduciary rule. In 2015, the firm had $227 million in commission revenue. That fell 13.5% to $196.4 million a year later.