Bank Of Singapore Starts New RM Compensation Regime

Bank of
Singapore has brought in a new performance-based compensation
framework for its relationship advisors as the bank aims to give
RMs more clarity over their variable bonuses, this news service
understands.

With competition remaining strong for private banking business,
the Singapore-based private bank is tweaking the way it rewards
RMs.

“Relationships and trust lie at the heart of private banking, and
our relationship managers (RMs) are central to delivering the
expert advisory and value that clients expect,” Jason Moo, Bank
of Singapore CEO, told WealthBriefingAsia in an emailed
statement. “To provide our RMs with greater certainty and
transparency over their variable bonus, we have introduced a new
compensation framework tied directly to each RM’s profit
contribution – a metric they are closely monitoring.”

“This is a meaningful shift that reflects our commitment to
attracting and retaining the very best talent to support our
growth ambitions,” Moo said. 

It is common for RMs at different banks to have compensation that
comprises their base salary and a variable bonus. In most private
banks, variable bonuses are predominantly paid on a discretionary
basis.

What has happened at BoS is that RMs have more certainty and
transparency over how their variable bonus is calculated. In
other words, RMs will know what their performance goals are.