Marshall & Gordon:
Designing an Effective Compensation System
Paul Nasr is the president of Morgan Stanley (MG) who has nearly 20 years of experience in the capital markets business. He assumed the leadership of the newly created Capital Markets Services division.
The Capital Markets division is an interdisciplinary entity created to serve as a link between the Investment Banking division and the sales and trading arms of the firm, Equity and Fixed Income. The division is created to provide the clients with more focused attention and service. The employees in this division were also expected to generate business from organizations that were not previously …show more content…
Understand the needs of the clients and utilize his market knowledge to work with the product specialists in providing a new product g. He should be a good team player h. He must possess good analytical skills to solve complex issues.
Evaluation of Options a.) Promote Parson
Rob Parson is an excellent employee who has turned around the Capital Markets Services division in Morgan Stanley in an unconventional way and brought in new business through his aggressive marketing skills. He is instrumental in improving the market share from 10th position to 3rd position, during which the market share rose from 2% to a substantial 12.2%. Since the division is new, he had to adopt these methods to win the clients’ trust. He introduced clients to his colleagues and also is able to cross-sell products. He might not always be social given his responsibilities but he is not antagonistic towards anyone. Moreover, Parson acknowledges that he is poor at self-promotion and is not in sync with the organization’s goals. b.) Hold his promotion
Nasr is in a position of responsibility and authority. If he chose to promote Robert Parson just on the basis of results, it would create a wrong precedent to other employees that they can bypass the Morgan Stanley culture and still get promoted. In addition, Rob Parson is personally recruited by Nasr and, giving a promotion to Parson despite the interpersonal issues indicates