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New Reward Packages For Salesforce Staff
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Date: 14th Oct 2005
LTU and the Bank began discussions on the new reward packages for regulated and non-regulated saleforces over 12 months ago. As part of those negotiations we looked at the size of the respective saleforces, the type of products they will sell in the future, how the current roles will be differentiated and how sellers will be rewarded in the post-Sandler world.
Mark Brown. Assistant General Secretary said “Our discussions during the last 12 months have been both open and constructive and the Bank’s Senior Management Team have changed their position on a number of key issues in response to our concerns.”
The key changes to the packages are as follows:
Non-Regulated Sellers…
Salary Increases
LTU have agreed significant salary increases for Mortgage Arrangers and Personal Account Managers. The average salary increase for Mortgage Arrangers is 6.8% and 11.5% for Personal Account Managers.
MAs and PAMs will still be entitled to any salary increase we secure as part of our pay and target negotiations
for 2005
Target Reduction
To help with the transition process LTU and the Bank have agreed to reduce sales targets by 5% for PAMs, MAs and Privilege Managers
No Automatic Demotions
Under the old system a period of underperformance would have resulted in demotion and a reduction in basic salary. From 1st October if a sellers performance falls below threshold they will not be demoted automatically. The threshold criteria must be achieved over three quarters and not two as is currently the case. This will reduce the impact of holidays and sickness on the achievement of targets.
Underperformance will be dealt with over a much longer period through the Managing Performance Improvement process and LTU members will have the benefit of union representation throughout that process.
Protected Salaries Guaranteed
There are a significant number of PAMs and MAs who are on protected salaries. We have agreed that salary protection will continue for this group of staff
Whilst staff on protected salaries can receive a higher salary, subject to performance, their salaries cannot fall below their level of protection.
Buyout of Protected Bonuses
From 1st January 2005 protected bonuses will no longer be paid but instead staff will receive a lump sum buyout equivalent to one year’s worth of protected bonuses.
Regulated Sellers…
Voluntarism - Principles Safeguarded
Savings and Investment Advisers, Black Horse Consultants, Financial Planning Consultants and Financial Advisers can remain on their current packages.
Enhanced Migration Rules
If they decide to migrate SIAs will get £15,000 spread over three years and BHCs will be paid in April 2005, 2006 and 2007 any accrued persistency bonus they are entitled to based on their sales.
Target Reduction
To help with the transition process LTU and the Bank have agreed to reduce the salespoints target by 5% for those on the FC 99 package.
No Automatic Demotions
Under the old system a period of underperformance for those on the FC 99 package would have resulted in demotion and a reduction in basic salary. From 1st October if a sellers performance falls below threshold they will not be demoted automatically.
Underperformance will be dealt with over a much longer period through the MPI process and LTU members will have the benefit of union representation throughout that process.
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