Welcome to

our
presentation

Presentation on
EUROCAP
BANK
NAME

ID

Andrina Baidya
1321052
MD. Shahadat hossain
1210495
Manjurul Alam Suhrid
13220787
MD. Mohaimin Ul Halim 1010192
Ishra Amin
1330781
Tanjin Farhana
1310452

EUROCAP Bank
Bonuses driving performances or driving
discontent
By March 2000s first quarter evaluation it was seen that
EUROCAP equities Japan had performed beyond expectations.
Bonuses were handed out in march for 1999s performance,
two key research analysts to resign and the team was overall
dispirited;
a. Bonuses were lower than expected, and;
b. Lower than industry payouts.
Management in EUROCAP equities Japan faced a crucial
period after bonuses; employee emotions ran high, staffs
were on edge and managers needed to handle discontent,
stabilize the situation and continue to motivate employees
not only to stay and perform, but to excel.

EUROCAP BANK
Task

retaining and motivating

employees

Management
Determining

in Japan

bonuses

EUROCAP Bank Japan

EUROCAP Bank aimed to be a universal bank with
a strong international focus. It had exposure in;
International

private banking.

International

consumer banking.

Correspondent
Invest

banking.

Strategy

banking.

The bank equity division

Research
Trade
Trading

functions

EUROCAP Bank Japan Equities

Develop

overseas sales, selling

Japanese products outside japan in
London and New York.
Foreign equity sales- selling foreign
products into japan.
Exchange traded derivatives.
Gain Tokyo and Osaka stock
exchange memberships.
Build the equity and quantity of
research.

Tactical Plans
EUROCAP Japans tactical plan had four
elements:
Generate approximately 80% of
business from non-Japanese clients.
Generate 80% of revenue from the
top 20% of clients.
Develop service menus for each client
and deepen relationships with them.
Improve commission revenue from
these clients.

CEO of EUROCAP Japan, Stephen

Hammersma, said;
When I hire someone, I try to negate
their perceived risks of working with a
second tier bank. But when I tell them
EUROCAP Bank has been in japan for
more than 100 years and that we are
one of the top 10 investment banks in
the world, It makes a difference. Also
when I reveal our global revenue figures,
interviews are usually impressed and
feel more confident than when they
walked through the door.

McCauley reflected on EUROCAP equities Japan:

Weve built a Rolls-Royce force to

build market share but our research
is not as strong. We have clients such
as Merril lynch asset management. If
our research analysts cannot talk
about total enterprise valuations and
sophisticated financial concepts, then
the clients are not provided any value
since they are smarter then you are
these days!

Industry compensation practices

Hammansera commented :
what I say is, we are a second tier European bank.
I cant pay you as much as Merrill lynch. But Im
trying to create an environment where you will like
to work. Its less through than American investment
banks and we want you to have some fun. But the
point of the matter is, we are holding the japan
office together cult, personality and friends. You
cant run on that steam forever. Also having
worked in this industry for years, I have realized
that money is not everything. I show pictures of
myself on my day of work as a top us investment
bank and say to potential employees, this is how I
looked.

Industry compensation practices

According to McCauley;
nobody will move for 20%
reward increase if they are happy.
They may move for 50%. If they
are happy there is a premium for
which they will move and you
have to bid higher than that
premium to attract them. Still
theres no guarantee.

EUROCAP Bank Bonus Management

Bonus and salary compensation review processes

although theoretically quite straightforward were
in practice quite complicated. Bonuses were
discretionary and not formula based. There were
at least four determining levels;
The

board of directors of the bank

The two board directors responsible for the
investment banking division.
Regional spilt
Operating units spilt

EUROCAP Banks 1999

performance
Guaranteed

Bonuses .

Skilled

and Experienced people .

Equity

Commission.

FY 1999 Bonus ,paid march 2000

Bonus

Allocation

Different

Operating Units

Aggregate

Bonus

Performance

Appraisal

Ex-bonus incentives
Stock
New
50

Award Program

Program was not aggressive

% bonuses were paid

Cumulative
Bank

Bonus

implemented bonuses

The future of Eurocap Bank

By

31 March 2000 the Japanese

market did not show any signs of
slowing down; the Nikkei Index had
reached 20337. Senior management
considered this a great opportunity
for EUROCAP equities Japan to prove
its credibility and performances.
However future success was
contingent on continued motivation
and participation of key employees.

Performance ranking criteria

(TOP)
Expected

to consistently exceed operating

and functional outputs
Expected to make a significant
contribution to the total business.
Would be a success at the very best
investment banks
Highly marketable
Able to attract others to move or stay
Creates opportunity for success
A responsible attitude towards risk
High impact on business If lost

Performance ranking criteria

(key)
Expected

to consistently meet or
exceed output requirements
Applies skills and intellect for the
benefit of the business
Expected to focus on total
business result
Could be a success at other firms
A degree of impact on business if
lost

Performance ranking criteria

(contributor)
Expected

to consistently meet
requirements.
Reliable performer and
contributor
Not broadly marketable
Straightforward to replace
Low impact on business if lost
Valued but not above average
value

Performance ranking criteria (on

the watch list)
Poor

standards of performance
Cavalier approach to compliance
Performance achievements
declining
Demotivating to others
No upgrade opportunity
No impact on business if lost

Thank You