Radical approach to compensating brokers

I have long been a proponent of making employees bonuses subject to a deduction if the employee is found not to have complied with company policies.  I haven’t had a lot of luck securing executive buy-in.

Now one company (whose reputation has suffered some dings for compliance issues of late) is doing precisely that.  Hip, Hip, Hooray!

“Barclays Advisers’ New Performance Metric: Their Behavior,” Wall Street Journal, February 13, 2014 C1 http://on.wsj.com/1g35QH4.  Apparently, the new policy has caused some of the employees to look somewhere else for a job.  Sounds like the policy is working.  I don’t understand why this isn’t a separate factor in the Federal Sentencing Guidelines Manual.  How could a company be serious about compliance with law or policy if it didn’t have such a deduction? Recruiters in the field say that “they don’t expect other brokerages to follow suit.”  What does that say about the cultures at those brokerages?  Or their commitment to compliance?


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Filed under Business Case, Compliance, Controls, Culture, Governance, Internal controls, Risk

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