I just read Jones’ backstabbing lp proposal for B shares has been approved. Anyone owning A shares will be stomped on and buried. I believe they want all of you to transfer to B so Jones won’t be locked in to the guaranteed 7.5% and whatever profits that may be included when they sell the firm. Switch over to B shares and see income dwindle over a few years. Did you hear new LPs won’t have to pay for there buy-in. I have. Please confirm.
Didn’t all VSPs have to sign a contract not to sue Edward Jones once they left with their A shares. Too bad they thought they could depend on lp income around 20%. Kiss it goodbye! PP is p-o-p-o!
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@z4 true. When things get bad for us financially, they also will skip the annual profit sharing contribution.
They make it abundantly clear that it is discretionary, meaning they’re not required to pay it out to us.
The ELT definitely has levers they can pull in order to protect them and their ivory towers.
@y5 so what you’re saying here is that profits interest get paid out before LP and GP?
You all should send some emails to Steve Sherwood with your concerns. Its all his idea.
I have always had my suspicions about this new lp type bc why would we ever trust leadership. They came up with it to protect the company bc if (well when…in the next couple years) things get really bad for them financially, they will have everyone’s money and owe nothing because its variable return and dependent on profit which they know isn’t going to continue to grow with their behaviors and in this economy.
You all do realize that the new PIH (Profit Interest Holders) don’t have to provide capital, but will get profits from the partnership. Depending on the profit percentage the PIH’s are allocated by PP the B shares might not even reach the guaranteed 7.5% that A shares will receive. Please read the entire filing before you sc--w yourselves and swap to the B shares! Do you trust Penny and the ELT? HE-L NO!!!
I’m keeping my A shares!!
Whatever they offer in Sept, I feel like once we read between the lines it will be another bait n switch. Even if they are trying to "give back" or make peace with us, nobody trusts them! It will take at least 5yrs of good behavior by higher ups before anyone trusts a word they say. The greedy S-B's ki-led their golden goose that would have made them more money in the long run had they not gotten so obsessed with being liked by the souless wall street elites and west coast techo bro snobs.
It su-ks, but I will have to convert my A to B shares and take what I can get until I retire.
@tj where is everyone seeing the variable return is going away for class A? Sure, class A won’t be offered going forward but I see nothing about turning it into only the 7.5% guarantee.
@gx B shares absolutely change the investment contract of the A shares. A shares will never see higher earnings than 7.5%. A share pay roughly 20% now and will not pay over 7.5 after the disgusting B share offer. There is something(s) in the current A share contract that PP and ELTs want to go away. Jones is saying they will never sell the company. Is a merger considered to be a sell?
If the real goal is to provide more profit to LP’s, why not just increase the percentage given to A shares and call it a day? I don’t trust the ELT and Penny! What’s the old saying…if it seems too good to be true then it probably is! Converting to B shares will allow for an easier buyout of the company since there is no profit guarantee for B shares, but they would have to pay a premium to A share LP’s.
Sorry PP I’m not falling for your shell game! I’m keeping my A shares.
@OP I still have not seen anyone address why the B shares are being offered without the guaranteed 7.5 percent and why the earnings over 7.5 are being stripped away from A shares. Let’s try not compare figures that GPs make against LPs. It’s like windmills being compared to pinwheels in every respect.
@j4 the variable component seems to be about 1/4 of GP returns which are also variable. GP returns don’t have the guarantee like LP A shares.
@j4 GPs = 65%+ LP 20%. GPs have much more capital invested.
@j1 What do A Shares return compared to GP returns today?
Class B shares will be SLP returns (50% of GP returns)
@e9 I don’t think this is true. The B class would not change the investment contract of the A class. I think they are sweetening the payout of the B class to avoid a guarantee on future LP. Someone correct me if that’s wrong.
@OP A shares have always had the guaranteed 7.5% AND for the last 26 years and probably much longer have paid around 20%. That’s 7.5 guaranteed plus 12.5%. Ex: LP owner has $100,000. That LP has been earning about 20,000 a year. Once the b shares are issued that person will only earn $7,500. That is a huge difference for those who are retired and have been counting on that money in retirement. You know, like the VSPs who had to leave. Or the older retirees who gave their heart and soles to Jones before retirement.
Now, A shares will earn 7.5 and B shares MAY earn that or above with nothing guaranteed. I absolutely do not trust Jones any longer. There is definitely a reason why they want A shares gone. I don’t know the reason yet. I sure wish someone who knows would tell us. I have no doubt it greatly benefits Jones and hurts LPs.
What’s the deal with LP? Aren’t we allowed to keep our A shares? Anybody have a breakdown of A vs B shares and options associates will get? My understanding was A shares give a guaranteed minimum 7.5%. B has no guarantee but it’s possible to make more. How much more? And existing A shares will have the option to stay A or covert to B shares later this year?
EDJ 2025: There are no plans to go public, we will always be a LP.
Also EDJ 2025: We're changing the rules so a majority of GPs need to sign off on any merger or IPO. We also fired any GPs who would vote against this.
EDJ 2026: Not enough new LPs are buying into the pyramid scheme, looks like we need to go public now or else the whole thing collapses. Yay! Culture!