PEARSON EDUCATION Added Value in Financial Institutions: Risk or Return (Financial Times Series)

Performance attribution is well standardised within fund management, due to modern portfolio theory. However, the rewards made to senior executives are a much more subjective topic. Bonuses and salaries are negotiated on a person-to-person basis and vary from one institution to the next. The same tools used in the fund industry to measure performance may also be used to assess added-value generated by senior managers and executives within financial institutions. Added Value in Financial Institutions demonstrates how this can be done and will allow general managers to start using modern portfolio theory to reward their staff. It provides a common framework to benchmarking as well as theoretical tools to design and refine benchmarks whilst maintaining an understanding of the specifics of different sectors. Including contributions from some of the leading names in the field, the book offers a novel approach to measuring performance and reward within hedge fund companies. It is prime reading for senior executives, consultants, risk managers, portfolio managers and derivatives traders alike. Edited by Emmanuel Acar, an actuary with banking experience, Added Value in Financial Institutions is a groundbreaking guide, unveiling the true worth of added value. Original contributions from traders, investment professionals, bankers, economists, academics and actuaries, including : Emmanuel Acar, Citibank Joe D’Alessandro, AIG Asset Management Jeroen van Bezooyen, Morgan Stanley Dean Witter Roger Boulton, Watson Wyatt Kevin Chang, Credit Suisse First Boston Rebecca Demsetz, Federal Reserve Bank of New York Maureen Duffy, The Journal of Performance Measurement Lauwerus van Eesteren, CTA C-View, previously Dresdner Kleinwort Wasserstein Helie d'Hautefort, Overlay Asset Management Soosung Hwang, City University Business School, London George Martin, TRS Associates Renaud Mattis, Overlay Asset Management Joe Prendergast, Credit Suisse First Boston Karin Roland, Valdosta State University, Georgia Marc Saidenberg, Federal Reserve Bank of New York Stephen Satchell, Trinity College, Cambridge Dmitry Shchukin, STELT Telecom Robert Toffel, JP Morgan Chase & Co. Robert De Young, Federal Reserve Bank of Chicago