Does managerial compensation reflect performance?
Article Abstract:
A study of bank manager's salaries was undertaken to examine the link between performance and compensation. The results do not reveal unanimity since the relationship was found to be positive when using the return on assets measurement but otherwise when measured according to the return on equity tool. The average salary was found to be $32,450. It is suggested that, whatever the measurement used, compensation should reflect the degree of autonomy and decisionmaking power of the manager and not be pegged merely to short-term corporate profits but also to long-range aims.
Publication Name: Journal of Retail Banking
Subject: Business
ISSN: 0195-2064
Year: 1995
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Avoiding yield declines in reverse mortgages
Article Abstract:
Reverse mortgages, which are loans given by banks to mostly elderly individuals on their property such as houses, are full of risks to the lender because of the uncertainty of their expected maturity. The resulting risks to yields could be solved by the bank through an adoption of either two methods: setting a fixed maturity date after which cash payments to borrower would stop or sharing in the future appreciated value of the property. The former is relatively riskless while the latter entails greater risks but promises a bonanza under favorable economic conditions.
Publication Name: Journal of Retail Banking
Subject: Business
ISSN: 0195-2064
Year: 1995
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Improving small-business loan profitability
Article Abstract:
Small-business lending can be a profitable endeavor for a bank that knows how to accelerate procedures and use available free time to undertake additional sales prospecting. Such a bank works from a customer profitability model to differentiate different types of clientele. The bank undertakes centralization and automation of its underwriting activity. It also adopts telemarketing procedures to save on personnel time and cost.
Publication Name: Journal of Retail Banking
Subject: Business
ISSN: 0195-2064
Year: 1995
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