Incentive-Pay Software: Rewarding Results, Not Just Account Openings

US Banker,  July, 2005  by Glen Fest

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Banks don't have to rob Peter to pay Paul when it comes to running multifaceted incentive-pay programs. Sometimes, Paul can earn his own way.Take, for instance, an institution that brought in a Peter-Peter Djokovich, CEO of incentive-management program outsourcer Strategix Performance-to map out problems with bonuses paid to boost annuities and mutual funds.

Investment-side workers at the institution chased the juicy carrot, and rolled a nice sum of revenues into the division and into their pockets. The only problem was that 80 percent of the funds were simply transferred money from closed CDs and money market accounts. "So the retail side had to triple their growth targets in order to make up for their lost portfolio," says Djokovich, who wouldn't name the bank. "A lot of incentive plans that get written by consultants or banks themselves are extraordinarily complex. In 40 percent of cases, banks don't fully understand their own ...