Financial Services Compensation
Overview:
CRI has extensive experience working with organizations within the financial services industry to develop effective compensation programs that are aligned with organizational goals and objectives. Our clients represent organizations within the broad range of the industry, including banks, investment firms, securities and broker/dealer firms, insurance companies, etc.
Specifically, CRI specializes in the design, development, and implementation of compensation and human resource programs in the following areas:
Types of Firms Served:
- Banking Commercial / Community
- Credit Union / Depository Institutions
- Insurance Companies
- Investment Firms / Advisors
- Security Broker / Dealers
Case Studies:
Case Study #1: Executive Compensation Analysis
Issues:
- Board of Directors wanted to align total compensation package for Senior Management with competitive market
- Board wished to implement formal incentive compensation program, including short- and long-term incentive awards
- Wanted to tie incentive awards to demonstrable results
Solutions:
- Interviewed Board members in order to understand the organization's culture, and confirm their position on compensation
- Interviewed executives to fully understand their duties and responsibilities
- Conducted a market analysis to determine the competitive market utilizing published survey and peer proxy data
- Developed appropriate salary grades and ranges for Senior Management
- Provided recommendations to the Board of Directors regarding base salary, annual incentive, and long-term incentives
- Designed the plan documents covering the short- and long-term incentive programs, and assisted with each program's on-going implementation
Case Study #2: Customized Compensation, Benefits and Pay Practices
Issues:
Solutions:
- Conduct a customized survey of the financial services industry Identify key issues to be addressed in survey Identify participants
- Collect and analyze data
- Present survey findings
Case Study #3: Financial Services Organization
Issues:
- Need to focus sales team to push new products and services
- Provide competitive compensation levels consistent with its competitive market
- Enhance the total compensation package with sales incentives
- Provide rewards based on individual and team-related performance
- Need to recognize account size with different incentive potentials
Solutions:
- Evaluate competitive market to determine levels of base and total compensation
- Design sales incentives based on desired mix of fixed and variable compensation
- Enable weighting of goals to focus attention on desired results
- Develop incentives to reward for team level achievement of sales goals
- Differentials awards based on size and complexity of sales responsibilities
- Develop administrative and tracking guides for effective plan management
Case Study #4: Wall Street Securities Firm
Issues:
- Morale compromised based on perceived internal pay inequities
- Desire to evaluate market to determine competitiveness of current pay system
- Enhance ability to attract and retain qualified employees inconsistent application of salary administration processes
- No formal method of determining staff bonus
Solutions:
- Develop Compensation Philosophy for staff
- Compensate employees at the competitive market level
- Prepare job summaries based on market analysis
- Develop salary ranges for all employee groups
- Develop Salary Administration Policy to ensure consistency
- Develop Bonus Program to enhance overall compensation package
