Question for any commercial banker out there....have you ever seen commission based pay instead of salary + bonus in commercial banking. I have several bankers that have hit a earnings ceiling and I am trying to come up with a creative way to reward them for their stellar portfolios. The only thing I worry about is compliance; would this comp model seem suspect?

Usually when they say bonus it's really a combination of their commission (which is generally a scrape of the fee they get from closing a deal), and a portfolio generation/retention bonus. So if someone is killing it by generating a shitload of new commitments, but their run rate is high and the fees he/she are collecting up front are on the low end, their bonus still takes a hit. It also depends on if your employer has actual delineation between Portfolio Managers and RM's or if the Credit Analyst/Associate is also the pseudo Portfolio manager.

Commision Based Pay for Commercial Bankers

dr_mantistoboggan_MD

Neanderthal

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