NEW YORK, NY -- (Marketwired) -- 06/17/13 -- While advertising agencies appear to be performing better, it is apparent they are failing to reward their staffs with improved incentive compensation, according to a survey results report released today by boutique investment bank PALAZZO.
"I wish I could be as optimistic and encouraging about bonuses as I am about overall industry performance," says PALAZZO founder Phil Palazzo, "But the reality is, agencies are doing better, but they are not rewarding their staffs in a commensurate fashion."
The third such research study conducted by the bank, reaching more than 6,000 C-level executives in marketing services, results show profits are up, growth rates have stabilized, and respondents expect 2013 financial results to be better than 2012. Improved results, however, do not translate to more thoughtful incentive plans and in fact, bonus pools as a percentage of profits are shrinking.
For the first time ever, respondents were asked to share comments, concerns, and questions about the survey. "We felt the need to hear first hand from our respondents what incentive compensation issues they were facing," said Palazzo, "The results were illuminating, and instructive, and, if anything, tend to confirm our point of view that well-formulated, strategic incentive compensation plans improve performance."
For detailed findings, visit the website below to request the complete study.
PALAZZO is a boutique investment bank with a singular focus on creating value and wealth for owners and stakeholders of marketing services, interactive, digital, information, and new media companies. PALAZZO's suite of advisory and acquisition services, combined with our ability to deliver superior results, makes us the partner of choice for agencies intent on improving performance, or considering an M&A transaction. For more information, visit palazzonyc.com.
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