|
Most financial institutions are publicly held and have different priorities than privately held SIB. Their first priority is to provide a return to the bank's shareholders, through either dividend payments or increased share value. Too often long-term performance and future growth are sacrificed for short-term gains in order to meet shareholders' expectations. Their second priority is to compensate the bank's top management. In many instances management compensation is not based on profit, productivity or growth, but on factors that are not correlated to performance.
In contrast, SIB's top management sets goals every quarter linked to profit, productivity and growth. All SIB employees are reviewed every 90 days and rewarded based on their individual and team performances as they directly relate to achieving these goals. By staying focused on reaching these quarterly goals, SIB has seen consistent profitability and growth every year since the Bank was founded. After first paying its clients a premium return on their deposits and then rewarding employees for their performance, the Bank has reinvested every dollar earned back into retained earnings. This has continuously strengthened SIB's capital base for future growth and is a significant difference between SIB and other international banks.
|
