TITLE

Developing a Compensation Strategy in a Financial Advisory Firm

AUTHOR(S)
Pomering, Rebecca
PUB. DATE
September 2001
SOURCE
Journal of Financial Planning;Sep2001, Vol. 14 Issue 9, p58
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article focuses on the compensation programs of financial advisory firms in the U.S. according to the 2001 Financial Planning Association's Compensation & Staffing Study. Among the compensation strategies employed by advisory firms, the most common was to pay competitively so as to hire and keep the staff needed to run the business. Others indicated that they minimize their base pay and maximize incentive pay. In terms of factors determining compensation, the study overwhelmingly indicated that performance serves as the basis for the majority of firms. However, such philosophy is not fully supported by pay practices. While it is certainly true in commission-based compensation, it did not apply to bonus compensation. In the majority of firms, bonuses were said to be discretionary, not performance based.
ACCESSION #
5189117

 

Related Articles

  • An Empirical Examination of Goals and Performance-to-Goal Following the Introduction of an Incentive Bonus Plan with Participative Goal Setting. Anderson, Shannon W.; Dekker, Henri C.; Sedatole, Karen L. // Management Science;Jan2010, Vol. 56 Issue 1, p90 

    Prior research documents performance improvements following the implementation of pay-for-performance (PFP) bonus plans. However, bonus plans typically pay for performance relative to a goal, and the manager whose performance is to be evaluated often participates in setting the goal. In these...

  • Is Pay for Performance Ethical? Thompson, Richard E. // Physician Executive;Nov/Dec2005, Vol. 31 Issue 6, p60 

    The article comments on the pay for performance compensation systems in organizations. Pay for performance is purposely established to create inequity in pay between two individuals or groups working in the same area of an organization. In a pay-for-performance compensation system, there are two...

  • Plans Shift to Reward Systems. Linton, David // WardsAuto Dealer Business;Feb2012, Vol. 46 Issue 2, p52 

    The article offers the author's insights on designing compensation plans for dealership service advisors. The author says that compensation of service advisors should include salary and bonuses for flat-rate hours performed, results-based areas management, and flat-rate hours sold. He adds that...

  • Genzyme Plan Will Tie Pay to Broader Performance. Hollingsworth, Catherine // BioWorld Today;1/29/2010, Vol. 21 Issue 19, p1 

    The article reports on a new incentive compensation plans adopted by Genzyme Corp. for its senior executives based on a broader set of performance measures beyond corporate income. The adoption of the compensation plans came in response to controversies over excessive compensation packages for...

  • DWP must engage its staff. Roberts, Zoë // People Management;2/26/2004, Vol. 10 Issue 4, p12 

    Deals with the need to implement performance-related pay in the Department of Work and Pensions in Great Britain, according to group head of human resources Kevin White. Reason behind the skepticism of the staff on the change; Barriers to changing the reward structure; Comments on an...

  • How Am I Doing? Rosenberg, Robert // Treasury & Risk;Oct2007, p27 

    The article presents the results of a study by Towers Perrin about variable pay programs. The study suggested that variable pay programs be linked to individual rather than group performances. Towers Perrin also recommended that reward programs be aligned with business goals for performance,...

  • Cut the compensation confusion. Allen, Christopher J. // DVM: The Newsmagazine of Veterinary Medicine;Jul2013, Vol. 44 Issue 7, p44 

    The article discusses employment compensation strategies for veterinary practice owners and their associates. These involve avoidance of failure to budget for change and anticipate an encore. It mentions that a production-based compensation arrangement is considered pointless whenever associates...

  • Now it's crunch time for bonuses. Covell, Sam // Supply Management;10/8/2009, Vol. 14 Issue 20, p18 

    The article presents the author's perspectives regarding the relationships between company performance and rewards. The author states that senior executives are awarding themselves with large bonuses instead of keeping their hardworking employees satisfied with their performance. The author...

  • Don't allow rogues to get you struck off.  // Mortgage Strategy;11/22/2010, p17 

    The article presents suggestions for financial advisers to watch out for low payroll incomes, bonuses and numbers and high salaries paid in cash.

  • New Jersey Chamber of Commerce/NJBIZ Poll.  // njbiz;12/15/2008, Vol. 21 Issue 51, p10 

    The article presents a New Jersey Chamber of Commerce/NJBIZ poll about employee bonuses in the state.

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics