Comments on: Is (Incentive) Compensation a Villain Of the Credit Crisis http://leapcomp.com/2008/09/is-incentive-compensation-a-villain-of-the-credit-crisis.html Thu, 09 Feb 2012 02:23:54 +0000 http://wordpress.org/?v=2.6 By: Steve Noll http://leapcomp.com/2008/09/is-incentive-compensation-a-villain-of-the-credit-crisis.html#comment-1465 Steve Noll Thu, 09 Oct 2008 17:17:00 +0000 http://leapcomp.com/?p=378#comment-1465 Truly these are tough times across the board for all businesses. I spent 4 years in investment banking prior to moving into SPM at a high tech, then Callidus for nearly 6 years and now Xactly for 3. I have two comments. Investment banking is highly regulated. I couldn't sneeze without some officer asking me if I had pre-authorization for that action. The funny thing is that when Mr. Greenspan, and I am a fan of his, deregulated banking he did not line up the compliance process with that change. Bankers are in this game to make money. SPM software is about motivating behavior to drive business initiatives. Like any sales rep, when you find a way to 'jog' the system and make more money most people will use that advantage. I guess its time, actually past time, to review the rules of the banking game? On a high note, SPM initiatives, especially those that are SaaS based, are in a keen position to help companies navigate these times by identifying where a business can cut costs, drive margin, add market share, align their sales resources, and all of it is done at a low cost of entry. We should all get that message out. Truly these are tough times across the board for all businesses. I spent 4 years in investment banking prior to moving into SPM at a high tech, then Callidus for nearly 6 years and now Xactly for 3. I have two comments. Investment banking is highly regulated. I couldn’t sneeze without some officer asking me if I had pre-authorization for that action. The funny thing is that when Mr. Greenspan, and I am a fan of his, deregulated banking he did not line up the compliance process with that change. Bankers are in this game to make money. SPM software is about motivating behavior to drive business initiatives. Like any sales rep, when you find a way to ‘jog’ the system and make more money most people will use that advantage. I guess its time, actually past time, to review the rules of the banking game? On a high note, SPM initiatives, especially those that are SaaS based, are in a keen position to help companies navigate these times by identifying where a business can cut costs, drive margin, add market share, align their sales resources, and all of it is done at a low cost of entry. We should all get that message out.

]]> By: Chris Doran http://leapcomp.com/2008/09/is-incentive-compensation-a-villain-of-the-credit-crisis.html#comment-1434 Chris Doran Tue, 07 Oct 2008 17:01:38 +0000 http://leapcomp.com/?p=378#comment-1434 That's pretty funny. (I'm currently a PM at Callidus, btw - I came over with the Comp Tech acquisition). That’s pretty funny. (I’m currently a PM at Callidus, btw - I came over with the Comp Tech acquisition).

]]> By: Julien Dionne http://leapcomp.com/2008/09/is-incentive-compensation-a-villain-of-the-credit-crisis.html#comment-1433 Julien Dionne Tue, 07 Oct 2008 16:52:14 +0000 http://leapcomp.com/?p=378#comment-1433 Very relevant and thanks for sharing! I have another post on the topic coming up soon. I won't give everything away just yet, but I had a very interesting conversation regarding the credit crisis with Steven Apfelberg, Senior Vice President, Marketing and Business Development at Callidus Software. At the end of the conversation I (jokingly) concluded that Callidus was to be blamed for the credit crisis because it did a *too* good job at encouraging certain behaviors (selling mortgages at all cost) in many financial institutions. I'm not sure he thought it was as funny as I did :-) Very relevant and thanks for sharing! I have another post on the topic coming up soon. I won’t give everything away just yet, but I had a very interesting conversation regarding the credit crisis with Steven Apfelberg, Senior Vice President, Marketing and Business Development at Callidus Software.

At the end of the conversation I (jokingly) concluded that Callidus was to be blamed for the credit crisis because it did a *too* good job at encouraging certain behaviors (selling mortgages at all cost) in many financial institutions. I’m not sure he thought it was as funny as I did :-)

]]> By: Chris Doran http://leapcomp.com/2008/09/is-incentive-compensation-a-villain-of-the-credit-crisis.html#comment-1430 Chris Doran Tue, 07 Oct 2008 14:37:09 +0000 http://leapcomp.com/?p=378#comment-1430 Before Bear Stearns went down but after it was apparent the housing bubble had burst, one of various CNBC programs was debating how these bad collections of mortgages could be sold in the first place. "Who would sell them?", they asked. Everyone was of the opinion that it must have been because nobody really understood that what they were selling (that is, packages of mortgages with variable rates of risks built into them) were actually bad products. Jim Cramer was the lone voice of dissent. He said these guys knew exactly what they were selling, and that "It's all about the commish [commission]." Just thought it was an interesting conversation. Before Bear Stearns went down but after it was apparent the housing bubble had burst, one of various CNBC programs was debating how these bad collections of mortgages could be sold in the first place. “Who would sell them?”, they asked. Everyone was of the opinion that it must have been because nobody really understood that what they were selling (that is, packages of mortgages with variable rates of risks built into them) were actually bad products.

Jim Cramer was the lone voice of dissent. He said these guys knew exactly what they were selling, and that “It’s all about the commish [commission].”

Just thought it was an interesting conversation.

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