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JB&J Wealth Group S2 WORKBOOK. Decisions and Notes for Modules 1 – 5. BSMARTer Business Simulation Management and Relationship Training. MODULE 1. Organizational Structure and Compensation. Service Team Structure. YOU.
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JB&J Wealth Group S2 WORKBOOK Decisions and Notes for Modules 1 – 5 BSMARTerBusiness Simulation Management and Relationship Training
MODULE 1 Organizational Structure and Compensation
Service Team Structure YOU Please see Page 1 of the Appendix for the Organization structure (i.e. how this Service Team ‘fits’ into our organization * The JB&J Briefing Book suggests the creation of the Analyst role, listed above
Compensation Benchmarking See Appendix A for position compensation information Source: 2013 InvestmentNews/Moss Adams Comp Study
Compensation Benchmarking • Based on Compensation tables for an Associate Advisor, we realize we have overpaid Kelly for her current role. We have also determined that Lillia is paid in line with her current job responsibilities. Reducing Kelly’s salary and/or increasing Lillia’s salary are not options we feel would benefit either individual at this point in time. • Given Kelly’s resume (graduate of Wharton/Master’s in Finance/CFA and CFP) coupled with her focused client engagement, we feel she is in-line to be promoted to a Lead Advisor role within JB&J Wealth Group. We will also be working on a development plan for Kelly so she has a career path opportunity to eventually become a partner. • With that said, we will work on a development plan for Lillia in order for her to advance within the firm as a Lead Advisor. Lillia is very well liked by clients however she needs to broaden her experience within the industry and organization. If Lillia chooses this as her career path, we would encourage her to obtain her CFA which would help build a case for increasing her salary to be in-line with a Lead Advisor role. • Addressing this ‘compensation issue’ sets the stage for changing our culture. We pay in the 3rd quartile and always want to attract and retain the best talent. We have a range based on credentials and we have multiple career paths (Associate Advisor vs Portfolio Manager/Lead Advisor). Furthermore, we align pay with key job responsibilities and performance. • As partners, we have also had a very candid discussion with Kelly regarding the disclosure of her salary with other members of our organization. We have reiterated with her that this is very personal and confidential information that should not be shared with others at the firm (other than Partners).
MODULE 2 Staff Selection and Performance Management
MODULE 3 The Culture of Your Firm
MODULE 4 Incentive Compensation
MODULE 5 Partner Compensation
Assumptions • New Asset growth projections (also new client growth) are based on actual Benchmarking projections detailing yoy growth of 0%, 5%, 9%, and 18%. • Rev bps will stabilize at 85 bps because our focus on clients with private companies will require complex tax, estate planning, etc that generates higher fees. • Beth (COO) will have an immediate salary increase of $75,000 to bring her to the 3rd quartile. Eventually, her salary will be increased to a CEO/Partner (keep fingers crossed) • We will add 2 Analysts/Portfolio Managers earning 3rd Quartile compensation. • A Bonus Pool will be established for all employees that will equal 25bps of gross margin. The COO will be eligible up to 50% of this Bonus Pool and will have the discretion to distribute the remaining Bonus Pool as she sees fit. • A Bonus for NEW Assets will be established. In Year One, we will pay 50% of revenue for NEW assets. • Annual salary increases are extrapolated at 10% • Annual cost increases are extrapolated at 5%. • Beth and Alice will be Partners by 2017 receiving Partner compensation • Organization chart was referenced for employee numbers.
Organization Structure Note: currently Beth is a COO. Our hope is that she will transition to CEO/Partner. In the interim, she reports to all the Partners.
