Consumer Banking
McLagan's Consumer Banking Practice covers clients engaged in providing products and services to consumers and small businesses through the branch, internet, phone, and wholesale/broker channels. Businesses covered include mortgage banking, retail banking, and credit cards. Compensation survey data is provided by channel, by product, and by geography for junior, intermediate, and senior level positions, as well as management and executives. In addition, McLagan provides information on staffing levels, productivity, and methods of pay. Consulting services include pay and productivity benchmarking and compensation plan design.
Compensation Plan Design:
Revised commission schedule for the mortgage banking division of a regional bank to support growth and align with market practices.
Developed compensation plan design for non-sales officer population.
Designed incentive plan for risk management professionals in a super-regional bank's mortgage subsidiary.
Compensation & Business Benchmarking:
Benchmarked competitive pay levels and practices for all employees in a global securities firm's mortgage subsidiary.
Benchmarked competitive executive pay levels for an independent services firm and a small full-service mortgage bank.
Benchmarked productivity and compensation payout levels of wholesale mortgage originators in a large commercial finance company.
Benchmarked competitive pay levels for executives and senior management in a global bank's credit card business.
Benchmarked competitive pay levels for executives and senior management in a large domestic US credit card issuer.
Compensation Advisory/Counsel:
Advised global securities firm on structure of compensation program for recently acquired wholesale mortgage originator.
Advised global securities firm on integrating compensation programs of primary mortgage origination and servicing businesses with MBS broker/dealer business.
Advised head of capital markets at large mortgage originator on quarterly compensation, productivity, funding and staffing trends.
While much attention is appropriately focused on the "how much" question in compensation studies, there is great value in understanding how pay is delivered, when it is to be delivered, and dozens of other policy and market practice questions.
Pay Practices: McLagan offers a broad array of pay practice analyses. Our reports summarize the scope of the Banking Businesses and the unique pay approaches observed across all participants. Through the use of questionnaires, data is collected and reported on many of the following topics:
Financial Metrics
Salary Administration and Merit Increase Practices
Types of Plans; Eligibility, Funding, Allocation, Forms of Awards/Deferrals
Performance Measures & Criteria
Bonus Pool Accruals
Turnover/Hiring Rates
Long-term Incentive Plan Designs as well as Prevalence by Business, Product, Geography and Employee Level
Non-cash Elements of Pay (Perquisites)
Mix of Pay Analyses
Staffing: A key building block for all financial services organizations is staffing. Our staffing product provides a fundamental understanding of how firms are structured to support their business. Staffing data is used by clients to gauge their presence in the market, and to make decisions regarding relative sizing of business efforts and appropriate organizational structure.
The staffing benchmark report includes total staff output from participating firms to produce staffing level comparatives by business, title, region, etc. Analysis includes written commentary, year-over-year trends, regional mix, title pyramids, front office to back office ratios and organization structure alignments. For individual "hot" areas, we are able to produce a benchmark comparison on organization charts/structure with supporting headcount, costs, etc. This staffing product will enable clients to understand:
Trends within the marketplace relative to multiple firms vying for similar resources
A view from the top down or detailed by business and position
Competitive threats and advantages
Growth initiatives at competing firms
Expense or resource allocation opportunities
Critical ratios across divisions, products, functions and front to back office
Productivity: The integrated use of compensation, staffing and production data provides a solid platform for decision making. The linking of compensation and other expense data to information about revenue generated yields important information about the productivity of resources. This "complete picture" approach to market data addresses our clients’ need for more context to make more informed decisions.
The Performance and Production Analysis component of our Survey Programs is designed to provide firms with feedback on market performance benchmarks for their various businesses and the market rates of compensation at each performance level. Comparing performance rankings versus compensation rankings enables firms to identify pay inequities.
In contrast to traditional McLagan compensation reports which answer the question, What is the median level of compensation?, this report answers the question, What is the compensation associated with the median level of performance?
This report is useful for benchmarking overall firm performance as well as the performance of individual incumbents, branches, functions, or geographic regions.
