Review case study your turn by merrill lynch and answer the below:
1. What will be the result of the bidding war for top brokers? Will most firms benefit? Who will be the winners and losers? What about the brokers?
2. Explain why there is such a strong relationship between pay and performance for brokers. Why isn't this true of many other jobs?
3. Should Bank of America change its compensation strategy to include more subjective assess-ments of performance and a greater emphasis on cross-selling? What effect might this have on its success in the bidding war for top brokers?
4. In chapter 1, we talked about incentive and sorting effects of pay strategies. Describe the incentive and sorting effects at Merrill Lynch and how changes to the compensation strategy might affect them.