Bank Executive Jailed Trying To Meet Sales Targets
The pressure to meet sales targets has caused a former bank executive 7 months of his life in prison for forging documents and transferring client’s cash to other accounts, it was reported in the March 23th 2010 edition of The Straits Times – Money-go-round scam: Ex-bank exec jailed. Quoting the report:
“Abhay felt pressured to transfer money to start off the plan as this would help him meet his monthly targets.”
“The court hear that Abhay forged a XXX plan application form in January last year to boost his sales figures as he was facing pressure from his management to meet performance targets“
It is an open secret that sales targets or quotas can and has created many issues in the business of wealth management. However, this practice remains prevalent. Calls by the authorities to revamp the remuneration structure has been reported in the media. However, resolutions have yet to be seen. I personally is not too optimistic that any possible resolution would successfully solve the need to have sales targets. The reason is simple – who would cover the cost?
Don’t the posh buildings and interior decor need money? Don’t the employees need to be paid? Don’t the institution need to make a profit and meet shareholders expectations? Don’t the management need to have their bonuses?
I had a chance to talk to an ex-private banker with a major foreign bank who has just left to join a Trust company. When the topic shifted to sales targets, he seemed surprised to know that I do not have to satisfy any quotas. In fact, I am not allowed to under the regulations.
I have written an article on the on the constrains wealth managers face. Sales quotas is 1 of them. Read the article – What Your Money Manager Don’t Want You To Know to find out more.
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Tags: Mis-selling, Wealth Management
