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BB&T Corporation Message Board

  • largebillsplease largebillsplease Dec 27, 2004 9:39 PM Flag

    Incentive Payout

    From what I understand of the BB&T incentive, it's paid annually in Feb/March, based on calendar year from previous year. Can anyone provide insight on % of lenders retail/comm/corp who made incentive last year, compared to this year? If company-wide data is not available yet, what about within your own districts/territories? I've had five account officers in the past four years, and they are getting progressivly worse. I'm loyal to BB&T b/c I've been with them for over 20 years, but I'm getting tired of answering the same questions and explaining my business to loan officers that are younger and younger, and dumber.
    I understand that BB&T isn't the cheapest bank in town, but I thought I was paying for "service and expertise"? 24 year olds don't know squat about multi-million dollar businesses that have been around since before they were born... Either I need my loans to be re-adjusted to account for the "service and expertise", or maybe I should start accepting these weekly phone calls from other banks. If you're one of these guys that says "Go on, leave, if you're not happy, then move on, we don't need you", you are out of touch with what banking has become. Low six-figure deposits and a $2mm loan relationship ain't much in the scheme of things, but those relationships are the ones that EVERY big bank/small bank/and soon to be credit unions(depending where you live) are after, because the pricing is right, and the size is affordable, regardless of size. BB&T loses 10 customers like me in every district, we're talking $700mm in loans and $35mm in deposits. That'll do her on the balance sheet...

    Happy New Year to everyone

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    • Jim,

      You tend to twist the point. My point is the compensation package is fair for performers and so is the incentive plan and that some posters in my opinion are disclosing information that is not for public consumption. Period.

      I am not sure if the company actually sets parameters for options meaning that if certain growth targets aren't met then no options are grabted. But you are certainly welcome to go check out the disclosures at the SEC website and draw your own conclusions.

    • Thank you very much for your input.

      I am thinking.

    • Anything below 40 to be held five years or more. IMHO


    • Dividend,

      Your statement is as follows:
      "Unlike others here who tend to reveal more than they should about how the company pays, incents etc, I am not that type of poster."
      Yet you make the statement in an earlier post that BBT is giving stock options to employees for just showing up.

      All I asked was who and how many options were granted under the above conditions. If options are granted as you state it wouldn't be much of an incentive based program. I have my opinion that options are being treated like water, but this was your statement not mine. If you can't back up your statements maybe you shouldn't make them.


    • Sorry Jim, I have lurked here a long time. Do your research. In the past you ask about earnings and get in debates over them with the information is clearly available to the public.

      Stock Options Plan Summaries are also filed with the public. I am not here to debate the dealings of the company. Unlike others here who tend to reveal more than they should about how the company pays, incents etc, I am not that type of poster.

      The information is out there. Go find it.

    • Stock, I don't think that the suggestion to "get another job" constitutes a bad incentive plan. It seems that a couple of posters have had relative success with it. It may be more a lack of determination on the part of the person who is trying for the incentive. We on the board will not know that, no matter what they say/do. The feeling that I get from some of these people is that they feel the incentives are an entitlement that should be given irregardless of production. Isn't that kinda what's given to Exec. Mgmt. now and what so many people complain about, just giving to be giving? Just food for thought...

    • At what price (as a newbie) would you buy BBT today? Why do you think the Yahoo 'experts' rate this stock a 3.2 with 5 being a strong sell (and 1 being a strong buy)? I am interested in buying some of this stock. THanks for any imput you care to give.

    • Still lurking from time to time...

      Definition of incentive:

      1) [n] a positive motivational influence
      2) [n] an additional payment (or other remuneration) to employees as a means of increasing output

      Discussion of incentives (or lack there of) has been interesting. If the response to criticism of an incentive plan essentially boils down to "if you don't like it, get another job!", doesn't that response by itself condemn the plan as poorly conceived or at least inadequate. I'm not talking about the dollars paid out. An incentive plan is intended to in cent people to do more or better or less waste, etc. Good one's incent all employees, not just those already high performers. Of course poor employees should be encouraged (or forced) to leave the company if they can not provide the employer with adequate performance, but I always thought that was a function of clear communication of goals and performance standards and periodic discussion with the employee of the own performance against those standards. That is a base component of both management and leadership. Incentives are rewards above and beyond "adequate performance" for those employees that are doing outstanding work and producing significantly higher returns to the employer than the norm.

      It sounds like that BBT has abandoned leadership/effective personnel management in favor of incentives only. This is an easy way to deal with poor leadership skills across the company. but I think it is, at best, a short term fix. As can be seen by the mediocre performance of the company the last few years (compared to earlier when leadership was more evident) it is not working very well.

      This became evident to me about 18 months ago and this is why I sold out when I did. True, the stock has rebounded since I sold and I would have additional BBT gains had I not sold, but I've done much better investing the proceeds in companies that I believe exhibit real leadership, where all employees believe in their leaders, are confident, and that have clear goals and are clearly appreciated.

      Remember that word - APPRECIATED. The Raynd Institute does not preach appreciation of employees to the Mythic Gods that run BBT. Who's John Gault? The one with the big payout built on the toil of the rank and file.

      Dang, I sound like a socialist. That's a far cry from where I started out - critiquing the incentive plans at BBT...

      In summary, I'm for incentive plans that incent everyone. See definition 1 above.

      Regards and Happy New year...


    • I am looking to invest in either BBT or FBC
      for the long term - 3 to 5 years (for
      income and growth)
      Which is a better investment?
      Div yield of FBC is slightly better (around 5%) than BBT. I am not sure how the growth
      prospects compare.

      Aso, does the div payment attract the lower
      15% tax rate?

      Any thoughts?

    • 'Preciate the info
      I got my first shares in 1965 and I also know where Toisnot Creek lies. Tobacco ruled Wilson in those years.
      As for the investment, it was a good stock (1960's-1990's)that was predictably cyclic. This allowed one to purchase in the $20 range and a split or sale at $40 around 18-24 months later. The dividends were good and the bank had the best capital ratios for any bank its size in the country.
      Times and management have changed and for all that is said the stock has been flat for 5 years and it looks as if management is taking draconian measures to eliminate cost precipitated by poor strategic choices and a lack of will to purge a fat organization 5 years ago.
      Quite frankly BB&T is not on the block by choice but by necessity. At least Wachovia recognized the handwriting on the wall and sought a buyer that allowed some control over the banks destiny. If the dollar continues its fall look for a foreign buyer sometime mid year. I am afraid that the glory days for BB&T are a thing of the past. Will I make money when it is sold? Is it a good buy? You betcha!

      Always enjoy conversing with someone who knows how to correctly pronounce Conetoe.

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