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Old 12-08-2020, 05:23 PM
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I believe that various banks have different commission structures but the total compensation works out to be pretty close

It is usually a tiered system whereby you will earn more for exceeding your target by a certain percentage

Say 50k is your target (sales component)

Payout could be 8%

Assuming you meet all the requirements for hit your target, you will earn 4000 of commission

But say you have 60k (120% of your target), the payout goes to 10%, you will earn 6000 for that month

If your basic is 3000, then you will be close to 10k per month right?

The best tier (at least during my time) was in the so called private clients segment whereby you are essentially the highest tiered retail banker. If money is your only consideration, this is the sweet spot & not at the private bank

The Private Client RMs are usually the ones with the best books in the whole retail bank. These are the clients with minimally 1.5mio with you hence you have ammunition to run your books

Once in a while, if you are really lucky, you may get some godfather type clients who are Private Banking class but banks with you, rare but not impossible

Almost all the top private client RMs in various banks make way more money than me, I know some rake in more than 1mio in commissions alone but they are usually very senior & hold all the best accounts in the retail bank. They cannot be displaced & I guess you can say they are untouchable so their life now is wonderful.. however it took them years of grind to get to where they are

Before you gape at the commissions, remember that the commission structure is transparent. Hence the bank will pay you as long as you deliver the goods, as these guys are essentially earning millions for their firms in fee income or mega insurance deals...

Having said all that, to even get to Private Clients, it takes years of outperformance & success to get there. Every new level you get to, there is a learning curve and how quickly you adapt to it will determine how far you can go

Lots of people burn out so quickly or become so disillusioned with the job, they change roles or leave. Hence the high turnover rate in retail banking

Is PVB prestigious? I guess the imagery of it has to fit what we are trying to sell to our target group of clients. But I think you will find that it is pretty normal working environment ..nothing truly glamorous about it

Getting to PVB has many routes, you can take my route of retail bank (crawl, climb etc through the various ranks and segments, then jump)

You can be a corporate banker with a great net worth of business owners etc

Needless to say if you are connected to a network of very wealthy folks

But another route is to become an assistant relationship manager in the bank, learn the ropes and support an RM and maybe if you stick at it long enough and garner enough trust and conviction from both the RM & the Market head/ Team Head that you are capable enough.. you will be promoted to RM and be give a small portfolio to manage (small as in CHF50 to 70m)

This route could also take years.. again luck plays a big part... who you are supporting, timing, looks, fit...


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