The dubious claims by the 47th US president about the Panama Canal will have been noted by both Braemar (BMS) and Clarkson (CKN), the two shipbroking groups quoted on the London market. New geopolitical uncertainties push up freight rates, which in turn boosts commissions and so the pay of their brokers.
Both chief executives also lead their broking teams, who match cargoes to ships. This is very much a people business, and accounts for just over two-thirds of Braemar’s revenues, and about four-fifths of Clarkson’s. The remainder mainly comes from advising clients on markets, financing, and acting as intermediaries for buying and selling ships.
Brokers’ pay is based on commission. Their bonus pool depends on the profits the broker teams generate. The 2024 bonus for James Gundy, Braemar’s chief executive, whose salary was £475,000, was £2.35mn. The company's pre-tax profit was £7.5mn. The chief operating officer, whose role also includes broking, received a bonus of £1.125mn. These eclipse the pay of non-broking executives. The bonus of the chief financial officer is capped to his salary.