McLagan's Corporate Banking Practice covers major and middle market corporate banking, commercial real estate, equipment leasing and finance, aircraft finance, commercial finance/asset-based lending and factoring.
Our clients include firms of all asset sizes, from large global banks to small regional banks and both captive and independent equipment leasing / commercial finance firms. We consult and provide surveys in the U.S., Canada, Latin America, Europe, the Middle East, Asia Pacific, Japan and Australia.
Compensation & Business Benchmarking
- Benchmarked competitive pay levels for the U.S. corporate banking division of an international bank.
- Benchmarked front office pay levels for a large leasing company.
- Benchmarked compensation and benefits as a percentage of revenue and pretax, pre-compensation profit for a government-sponsored banking enterprise.
Compensation Plan Design
- Developed new incentive compensation program for the commercial real estate division of a regional bank to support a bank merger.
- Developed annual and long-term incentive program for government-sponsored banking enterprise.
- Developed structured incentive compensation plan for the equipment finance and leasing business of a large regional bank.
Compensation & Organizational Advisory/Counsel
- Advised a large regional bank on year-end bonus decisions in line with market practices.
- Advised a wholesale lending institution on incentive plan disclosures required for government filings.
- Evaluated and recommended incentive plan changes for all relationship manager positions across the commercial division of a regional bank.
Incentive Plan Studies
McLagan offers a broad array of pay practice analyses. While the compensation surveys answer the question of how much, the incentive plan studies answer questions related to incentive pay structure. Our reports summarize the scope of the banking businesses and the unique pay approaches observed across all participants.
The data, collected by questionnaires, is reported by the following topics:
- Organizational Structure
- Scope of Responsibilities
- Incentive Funding and Allocation
Staffing / Expense / Productivity (SEP) Study
McLagan’s Staffing Expense Productivity (SEP) Study is a tool that enables the US operations of international banks identify ways to improve revenue realization and reduce costs by benchmarking revenue, compensation and non-compensation expenses and headcount. Our reports allow firms to track their performance relative to their peers’ using non-public financial information
The SEP Report helps firms answer the following key business questions:
- Does front office staff generate more revenue per head than competitors?
- How cost efficient are we compared to our peers?
- Are our payout rates in line with market practice?
- Does our grade pyramid adequately support revenue generation?
- What are the greatest sources of cost variances relative to peers for both compensation costs and non-compensation costs?
- Do we have the right mix of support staff across the organization?
- How many risk staff are appropriate given the scale of our business?
- Is our benefits package considered “rich” compared to other firms?
- Do we have the right mix of support staff across the organization?
- Does our reliance on head office for some infrastructure support give us optimum cost savings?
The granular level of reporting provides various angles from which to analyze the firm’s financial and staffing data. Our reports measure and rank:
- Net Revenue Per Head
- Contribution Per Head
- Payout ratios
- Grade Pyramid Mix
- Infrastructure Comp Cost per Front Office Head
- Detailed expense line costs for both compensation and non-compensation costs
- Staffing levels by function
