03Sep2025

Carrot or Stick for RMs

Disclaimer: The views and opinions expressed in the vapa Swiss independent wealth management blog are solely my own and do not reflect those of any institutions or organisations with which I am affiliated. These posts are intended to share personal insights and should not be interpreted as official statements.

Illustration of a hand holding a carrot on a stick, symbolising RM motivation in private banking leadership

Relationship Managers (RMs) are the core of independent wealth management. But leading them is complex. They face pressure from clients, management, and regulation. So, how do you lead them well? And what really works – carrot, stick, or something else?

βš–οΈ Freedom vs. control

Most Independent firms promise freedom, which is why many RMs leave banks. However, too much freedom creates risk, and too much control kills motivation. Striking the right balance takes skill, trust, structure, and honest dialogue.

πŸ’Έ Clear KPIs and transparent payout

RMs want to know where they stand. Clear goals and simple payout models create focus. If an RM performs well, they should see the benefits reflected in their performance and compensation. Many banks still avoid transparent ratios, but independents often lead the way, which gives them an edge.

🀝 Lead like a partner, not a boss

Independent firms work best when RMs feel like entrepreneurs. That means leadership must shift. No micro-management. No old-school sales pressure. Instead, coaching, clarity, and shared ambition.

πŸ§‘β€πŸ€β€πŸ§‘ Real partnership beats hierarchy

The best independent firms offer more than salary. They offer ownershipβ€”being part of something. That mindset builds loyalty. It turns RMs into stakeholders, not just staff.

Here’s the big idea:

While compensation matters, most RMs don’t leave banks primarily for more money. Instead, they seek greater meaning in their work, more control over client relationships, and a more profound sense of trust in leadership. They see the carrot-or-stick game.

Therefore, independent firms consistently delivering these values are far more likely to attract and retain top talent.

So ask yourself the carrot or stick:
Are you being managed?
Or are you being led?

Source: LinkedIn

No votes yet.
Please wait...

Beyond the Bank – A Private Banker’s Path to Independence

Discover how today’s private bankers can break free from traditional institutions and build truly independent client relationships. This guide shares the strategies, challenges, and opportunities behind a successful move into independent wealth management.

Get Your Monthly Insights!

* indicates required


Please select all the ways you would like to hear from vapa.ch:

You can unsubscribe at any time by clicking the link in the footer of our emails. For information about our privacy practices, please visit our website.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp's privacy practices.