PM Team Structure
Portfolio Management InstituteAtlanta
April 2009
Jeffrey S. GersonGerson, Guarino & Meisel Group
Family Wealth DirectorSenior Portfolio Management Director
New York City, NY
TeamTeam DefinitionDefinition
““A Team is an assembly of individuals who A Team is an assembly of individuals who work together towards a common goal”work together towards a common goal”
IndividualIndividual DefinitionDefinition
““A single human considered apart from a A single human considered apart from a society or communitysociety or community “
“a single human being, as distinguished from a group”
QuestioQuestionn
Do you believe your client’s want Do you believe your client’s want to view you as an island?to view you as an island?
Team Formation
When do you consider forming a team?
“Successful teams are built by filling weaknesses, not by just adding strengths”
Types of Teams
Vertical Team Horizontal Team
Types of Teams
Vertical Team One main decision maker Looks much like a single practitioner
with an army Very often, the team leader receives the
gross and the rest of team receives salaries
Types of Teams
Horizontal Team Team Macro Decision Making Generally a sharing of the gross pool Team members in charge of excelling at
their specialty Looks like advisory firm within the firm
Why Should you Consider a Why Should you Consider a Team?Team?
Depth Continuity Service Reduce Risk
Why Should you Consider a Why Should you Consider a Team?Team?
Depth Fact: HNW individuals gravitate
towards the team approach Fact: Nobody is so smart that
they can be everything to everyone
Why Should you Consider a Why Should you Consider a Team?Team?
Continuity HNW Clients want to feel that their
financial future doesn’t end when your financial career ends
HNW Clients want to know that someone is available at all times to watch their assets
Why Should you Consider a Why Should you Consider a Team?Team?
Service Team members can focus on
specific aspects of service/advice in a collaborative effort.
Diversity in product / service offerings is very sticky for Clients
Why Should you Consider a Why Should you Consider a Team?Team?
Reduce Risk Sharing in the ups and downs of the
cycles makes it easier to focus on doing business
Providing a diverse offering of specialties amongst a team mitigates the risk of a client finding answers elsewhere
What Makes Teams Last?What Makes Teams Last?
Compatibility Respect Success
Define Roles and Define Roles and ExpertiseExpertise
Products and Services Portfolio Management
Equity Fixed Income
Trust Services Liability Management Estate Planning Alternative Investments Cash Management Executive Benefits Philanthropic Services Insurance Long Term Care Asset Protection
Process Rainmaker Family Office Advisor Portfolio Manager /
Chief Investment Officer
Financial Planner Relationship Manager Administrative /
Operations Team Management Technology
Coordinator Presentation &
Proposals
““Successful teams are built by filling weaknesses, Successful teams are built by filling weaknesses,
not by just adding strengths”not by just adding strengths”
Top 5 MistakesTop 5 Mistakes1. Duplication: Hiring someone just like yourself 2. Dumping Ground: Hiring A Junior Partner
Upon Which To Dump The C-D-X-Y-Z Book3. Forcing the Roles Issue: Putting People In
Roles That Don’t Play To Their Strengths4. I vs. We: Policy stems from the top and
everyone needs to buy into the team approach5. Dislocated Comp Structure: This business is
a meritocracy. The comp needs to reflect that.
Getting Getting ThereThere
3 Stages
1. Observation and Due Diligence
2. Dating3. Marriage
PreparationPreparation
Compatibility Social Business
Personality Analysis Paragon Resources
CompensationCompensation
“Be Fair or Beware”
Compensation StructuresCompensation Structures
Support Staff
“Nobody Works For you, they work with you”
What does Staff What does Staff Want?Want?
• Respect
• Praise
• Protection
• Money
Compensation StructuresCompensation Structures
Financial Advisors
“ “Dating” ModelDating” Model
PoolAcct.
TeamTeam50%50%
Joint Production NumberJoint Production Number
TeamCandidate
50%
Marriage “Model”Marriage “Model”
Step 1: Inventory Your Current Business – Focus Report Analysis
Step 2: Establish definitive roles and expectations
Step 3: Create method of measurement and evaluation
Step 4: Establish a production number for legacy business
Step 5: Establish a production number for new business
Marriage Marriage CompensationCompensation
Subjective - not good on it’s own
Objective - not good on it’s own
Question: Whats the solution?
Answer: Progressive Objective Subjective
Progressive Objective Progressive Objective SubjectiveSubjective
The establishment of a system that incentivises all team members to service the entire book and creates a method for less senior FAs to increase their equity over time by being rewarded by the success of the team and being rewarded for their level of contribution.
Case StudyCase Study
Gerson Guarino & Meisel GroupNew York, NY
Gerson, Guarino & Meisel Group
Investment and Wealth Management
Jeffrey S. GersonFamily Wealth Director
Gregory M. MeiselPortfolio Management Director
Christopher D. GuarinoSenior Portfolio Management Director
Michael A. Gammarati, CRPC®Portfolio Management Associate
Laura MicelliSr. Client Service Associate
Ishrat MirzaClient Service Associate
Shawn P. Landau, CFP®Vice President – Wealth Management
Research, Service, and Administration
Lisa GuzmanRegistered Client Service Associate
Joseph GammaratiRegistered Client Service Associate
Richard F. DiVenutoFamily Wealth Director
Andrea AmayaRegistered Associate
Official Firm Titles
Gerson, Guarino & Meisel Group
Investment and Wealth Management
Jeffrey S. GersonRainmaker / PWM Advisory / Sales / PR
Gregory M. MeiselRelationship Mgr / Sales / Team Conduit
Christopher D. GuarinoCIO / Portfolio Manager
Michael A. Gammarati, CRPC®Cash Inv. / Model Portfolio Execution /
Sales Fullfillment / Insurance / CPM
Laura MicelliManaged Accounts / 529sInsurance and Annuities
Ishrat MirzaAdministration
Wires, Journals etc…
Shawn P. Landau, CFP®CFP / Comprehensive Plans / Sales Follow up
Research, Service, and Administration
Lisa GuzmanEFS, New Accounts
Complicated Projects
Joseph GammaratiFixed Income Trading Assistant
Presentation Prep. / CFA Candidate
Richard F. DiVenutoAsset Protection / Investment Banking / Sales
Andrea AmayaTravel and Ent. Scheduling / Operations
Actual Roles
“ “Progressive Objective Progressive Objective Subjective” ModelSubjective” Model
Total
Production
Legacy Legacy FAFA
numbernumber
Joint Production NumberJoint Production Number
NewBusinessNumber
FA #135%
FA #413%
FA #317%
FA #224%
FA #411%
PM Team Structure
Portfolio Management InstituteAtlanta
April 2009
Jeffrey S. GersonGerson, Guarino & Meisel Group
Family Wealth DirectorSenior Portfolio Management Director
New York City, NY