Issues in Optimizing Performance

1
Issues in Optimizing Performance

• Week 14, November 30, 2006

2
Pay

• Importance of labor in financial services
• Pay schemes
• Problems unique to financial services
• Nature of relationships
• Time and risk
• Turnover and reputation and/or productivity
• Developments

3
Organization

• Stocks versus mutuals
• Deposit-taking
• Insurance
• Securities
• Asset-management
• Structuring the organization
• Regional, product, customer forms
• Problems of large organization size
• Technology and implications

4
Transfer Pricing

• Examples
• Pervasive nature of transfer pricing issues in
  financial services
• Analysis of departure from market prices as
  benchmarks for transfer prices
• Current issues
• Investment versus commercial banking
• Securities services and asset-management
• Insurance versus pension plans

5
Final Due December 7

• Review course materials for exam and determine
  any help or assistance you would like from me
• Review session Friday, December 1, 330pm
• Examination will be a take-home exam, five
  questions, lasting approximately 2 hours
• Review Wall Street Journal article list to
  identify key issues this semester
• Grades will be posted as soon as possible