This Case is about COMPENSATION, PERFORMANCE MEASUREMENT
PUBLICATION DATE: November 01, 2012 PRODUCT #: NA0172-PDF-ENG
Paul Lui, the Executive President at the Private Client Services Division (PCSD), had the challenging job of designing a fresh incentive compensation system for fiscal advisors at the wealth management department of a mid-tier financial services company that had limited resources compared to its bigger competitors. Luil had several goals in its mind in designing the newest incentive compensation system: to stimulate fiscal advisors to remain, perform, and shine; to bring new advisers to fill in the empty places; and to develop new business in the face of labour shortages and major competition from bigger companies. How did the present settlement strategy at PCSD compare to those of competing companies? Could the settlement strategy alter for PCSD, given the resource constraints his business confronted as a mid-tier financial services business? Beyond settlement varying strategies, what could Lui do to quit leading companies from leaving recruit new seasoned advisors; and more generally, enhance the morale at PCSD?