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Bank trust departments are increasingly turning to incentive programs to further improve their bankwide referrals. Under such systems, officers who bring in profitable accounts are rewarded with financial incentives. One company that has greatly benefitted from an incentive compensation program is Cambridge Trust Co. According to its vice-president, the trust company amassed $84 million in new business from 1990 to 1993, translating to more than $400,000 in business. In return, it gave out a total of $40,000 as bonuses to trust officers, banking officers and a director who were responsible for generating the new accounts for the aforementioned period. The vice-president emphasizes the importance of internal communication in publicizing the incentive-for-referral program among employees. National Bank and Trust Co., First Community Bank, Bank of Oklahoma and Northrim Bank have also implemented their own incentive systems., Increasingly, bankers are challenged to boost fee income while streamlining expenses. Given these stringent parameters, incentive programs are achieving heightened importance as a means to retain and reward stellar producers. [...]

A case study is made of a Soviet incentive plan that has various limitations in the effort to resolve incentive compatibility problems. The Soviet plan is defective because it will require that significant conditions be met for the desired results. Though the overall output of the company may improve upon adoption of the Soviet incentive plan, the result will be problematic since it depends on specific advantages.

An employee incentive program developed by Puget Sound National Bank in Tacoma, Washington, has increased employee productivity and employee morale and, in one recent campaign, increased travelers check sales 54 percent, new corporate accounts 75 percent, and new 'Quickbank' cards 77 percent. The incentive program, APPLE, A Program for Personal Learning and Effectiveness, was designed to generate referrals and cross service, and is applicable to every employee in the bank. A monthly merchandise program provides product knowledge and motivation through a number of contests; an ongoing recognition program culminates in an annual awards banquet, and specific product promotions with incentives take place only as needed. The key to the success of the APPLE program is the monitoring of employee referrals and cross-sales by a computerized tracking and measurement system.

A historical view of British tax law reveals the emphasis on income earned from land and the occupation of woodlands from the early years of taxation (post-1803). Currently, Britain's forestry industry participants may report their income for taxation purposes using either Schedule B or Schedule D. The advantages and disadvantages to both methods of reporting are detailed. This filing option, coupled with the forestry industry's ability to defer relief from inheritance taxes, constitute the special taxation rules for this industry. The special rules were devised to promote the forestry industry, one which requires long-term investment and long-term returns on investment.

Citizens and Southern (C&S) National Bank (Columbia, SC) uses 'cash-less' incentives to reward employee sales performance. C&S finds that sales can be improved by offering sales training to staff, measuring sales performance, recognizing sales 'winners', developing employee enthusiasm through marketing, and by emphasizing a customer focus. Monetary incentives can foster sales of products without regard to customer need and may reward staff for sales which would have occurred even without the sales program. Monetary incentive programs can also cause employee frustration, especially among staff who do not have customer contact.

The key to banking success is quality personal service because of aggressive non-banks that offer more financial products and some cheaper prices. Chartered banks need executive commitment and financial resources to develop the 'people' talents needed for good customer service. Commitment should begin with the chief executive officer (CEO). Dick Jackson, CEO of Georgia Federal Bank (Atlanta, Georgia), believes training in customer service areas should benefit trainees by being fun, promoting employee recognition, encouraging employee feedback, and offering rewards for outstanding service. Other examples of bank programs to promote excellent customer service are discussed, including: Commercial Security Bank's (Salt Lake City, Utah) 'Employee of the Year' program, and Union National Bank and Trust Co.'s (Manhattan, Kansas) 'Oops' program that pays customers for mistakes.