Meets sophisticated compensation needs

Increases efficiency and business continuity

$18,000 in cost savings

Faced with a manual commissions process, Northland Securities, both an independent and an institutional brokerdealer, sought a compensation management solution that offered greater efficiency, transparency and flexibility to handle complex commission schedules across multiple business lines


Challenge

The firm’s compensation process was managed in a combination of their clearing firm’s commission system and various spreadsheets which created redundant work across multiple processes.
With a vast range of different business types, this created more complexity which led to increased errors, staff time, delays and unnecessary costs.
Increased business continuity and transparency concerns arose due to reliance on specialized internal knowledge of complicated payout calculations – rather than accessible data, calculations and automation residing in a central location

Solution

 Sycamore’s Compensation Manager was customized to the specific compensation processes of different business lines including Wealth Management, Institutional Fixed Income, New Issue Municipal Bond Public and Conduit Finance, Secondary Fixed Income and Equity Trading, and Equity Investment Banking.
 The system provides reporting transparency to commission employees and management detailing gross and net commissions across a wide range of revenue types, firm departments, and payout scenarios.
 Compensation Manager creates workflows from commission transactions and advisor ledgers to accommodate the needs of the different types of business the firm conducts.

Impact

Significantly improved the firm’s ability to manage diverse and complex compensation requirements, reduce reliance on spreadsheets, and save staff hours of work.
 Flexible pay calculations improved accuracy while resolving manual commissions, including those for complex options payouts.
 Expanded automation of commissions – such as payouts on trade minimum rules, default payout percentages based on a Public Finance Deal or Fee type, options commissions, and BDO, staff pool and sales assistant overrides.
 Enhances business continuity through remotefriendly cloud environment and centralized compensation workflows.
 Reduces the risk of manual process knowledge residing with only one or a few personnel.
 Helps increase efficiency for other downstream processes such as accounting.
 Provides reps with real-time views of their commission history including pending commissions and fees, and allows managers to keep track of production through intuitive dashboards.
 Offers greater transparency into rep production by state, enabling the firm to save $18,000 in unneeded state registration fees.
 Scales easily to accommodate additional commission types as needed.

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