CFO Focus: Effective ALCO Meetings

first_img 3SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr Clearly and consistently navigating the route to optimized future balance sheets and income statements is the responsibility of a credit union’s asset/liability committee. ALCO meetings can be some of the most dynamic and participatory events in the credit union when a practical, efficient, and effective process is used to create harmony and execution in optimizing ALCO loan and deposit pricing decisions.Pricing managers recognize that pricing impacts revenue in two ways. Higher sales price—such as a loan rate—increases the revenue on realized business, while making the sale more difficult. Lower sales price tends to increase the likelihood of the sale, while reducing the profitability of any sale achieved. This conundrum often causes discouragement for those without an effective framework to anticipate and properly deal with it. High-performance pricing managers recognize the environment and have learned how and where to make optimizing pricing adjustments. We share their process here.Recognizing that price is a major factor in both volume and interest spreads and that the combination of volume and interest spread produces profits, it’s easy to conclude that price is ultimately a primary determining factor of profit.  The harder part to understand and apply is that some price increases cause a related increase in performance, while other price increases actually decrease performance.For example, a credit union’s ALCO could decide to raise loan rates. It’s always profitable to increase the price of a loan if nothing else changes as a result. But member behavior in response to an increase in loan rates—such as deciding to go elsewhere for the loan or deciding not to take a loan—could reduce the credit union’s revenue and overall profitability. continue reading »last_img read more

Arsenal’s choice to put players before staff shows how unequal football has become

first_img Read More View 4 comments Rio Ferdinand tells Ole Gunnar Solskjaer to drop struggling Arsenal is not a company on the brink of collapse (Picture: Paul Gilham/Getty Images)A year ago, on the club’s official YouTube channel, Arsenal released a great little video.It featured the club’s star players in distinctive north London settings, talking in distinctive north London dialect. ‘Looks fresh bruv,’ says Mesut Ozil, born in Gelsenkirchen, to his Turkish barber. ‘The game today is ours for the taking mate,’ says Pierre-Emerick Aubameyang, captain of Gabon, over a greasy-spoon breakfast. The message was simple enough but poignant: Arsenal was, at heart, a community institution. ADVERTISEMENT PLAY Full Screen Read More SPONSORED Read More Skip Advertisement Read More Skip Ad Advertisement As if to prove the point, the club have spent the past few days in negotiations to sign Willian, a decent but largely unremarkable forward, from Chelsea. Reports say he’s been offered a £10million signing-on fee, with wages somewhere around £100,000 a week. Or to put it another way: Arsenal is not a company on the brink of collapse.The redundancies were made, in the words of the club, ‘to ensure we are operating in a sustainable and responsible way, and to enable us to continue to invest in the team’. To spin the sacking of 55 non-playing staff – who, according to reports have an approximate combined salary of £2.5million – as a means of facilitating investment in new players is especially shameless.  It is clearly a cheap attempt to hide the cruelty and human cost of such decisions behind the modern fetish for big-money signings. In truth the two things have barely any relationship to each other at all.  Football’s defining feature in recent years has come to be a rampant, grotesque inequality. This is generally framed as existing between clubs. Manchester City bask in the sovereign wealth of Abu Dhabi while Bury, six miles down the road, go out of business. The country’s six richest clubs bring in as much as the next 86 put together.What the Arsenal episode has shown is that there’s an inequality within clubs, too: not just in terms of money but in terms of human worth. Ozil, a player who can’t even get into the team, is earning £350,000 a week. He is not in danger of redundancy. Football’s defining feature in recent years has come to be a rampant, grotesque inequalityArsenal are not alone. Indeed their behaviour yesterday was broadly symptomatic of the money-mad cynicism that has become football’s MO in the Premier League era. AdvertisementAdvertisementThe immediate response to the coronavirus crisis by Liverpool FC (annual turnover: half a billion) was to furlough roughly 200 staff. Newcastle remain under the ownership of Mike Ashley, whose Sports Direct shops were likened to a ‘Victorian workhouse’ in 2016.There are those who will say this is simply the world we live in. Maybe so, but that ruthlessness is well disguised when it comes to season-ticket renewal time, and fans are fed cosy rhetoric about how they are the club’s real owners.Indeed, Arsenal’s news yesterday was delivered to the fans under the banner ‘An update from your club’. It’s a nice idea but – unlike, say, in Germany’s Bundesliga where the requirement for a club to be under members’ control is written into legislation – Arsenal fans are no more the club’s proprietors than the staff now collecting their P45s.To imply otherwise is to invoke the spirit of community with their words while trashing it with their actions. And yet, like all clubs, Arsenal are a real presence in the local community, running schemes for employability, home learning and social inclusion, and across all age groups.In fact their community work is even more conscientious than most – and these gestures are authentic and meaningful. They make a genuine difference. But the good work of some is badly undermined by the working practices prescribed by others. More: FootballRio Ferdinand urges Ole Gunnar Solskjaer to drop Manchester United starChelsea defender Fikayo Tomori reveals why he made U-turn over transfer deadline day moveMikel Arteta rates Thomas Partey’s chances of making his Arsenal debut vs Man CityWhen Liverpool tried to furlough their workers in April, it sparked a furore from a number of parties, not least the club’s own fans and eventually good sense – and good ethics – prevailed. AdvertisementA similar public response has met Arsenal’s latest announcement, but whatever the outcome, both episodes have shown the same knee-jerk instinct. In the boardroom, community only counts so long as it hikes up the bottom line.After all, that video was made in order to promote the club’s home shirt, RRP: £59.95.Do you have a story you’d like to share? Get in touch by emailing [email protected] your views in the comments below.MORE: Ian Wright hits out at Arsenal decision to announce significant job lossesMORE: Arsenal and Man Utd centre-back target Gabriel makes transfer decisionMORE: Arsenal to sack international scouting chief Francis Cagigao as part of lay-offs Read More 1/1 1 min. story Video Settings Alex HessFreelance sports writerThursday 6 Aug 2020 3:32 pmShare this article via facebookShare this article via twitterShare this article via messengerShare this with Share this article via emailShare this article via flipboardCopy link368Shares Manchester United captain Harry Maguire Visit Advertiser website GO TO PAGE About Connatix V67539 Coming Next Top articles Arsenal’s choice to put players before staff shows how unequal football has become by Metro The forces of globalisation and commercialism that had propelled the club to where it is today would not change that – if anything, they enhanced it: the global and the local, the players and the fans, the big guys and the little guys, all as one. AdvertisementAdvertisement Visit our live blog for the latest updates Coronavirus news liveIt’s a video worth revisiting in light of the club’s announcement that it plans to make 55 staff redundant due to the economic downturn caused by the coronavirus pandemic. On the one hand, fair enough. When faced with a choice over whether to prioritise the future of the business or keeping everyone’s jobs safe, many companies are siding with the former. Without saving the business, how do you save jobs?  Except in this case the choice is emphatically not as clear cut. Arsenal may have seen a drop in revenues of late but the club’s income from broadcasting is still eye-watering (around the £200million-a-year mark in 2018-19) and its commercial department pulled in more than half that again.  / last_img read more

Dolphins owner appalled by bullying scandal

first_imgby Fred GoodallAP Sports WriterTAMPA, Fla. (AP) – Miami Dolphins owner Stephen Ross has broken his silence on the bullying scandal that has engulfed his team, saying he’s appalled by Jonathan Martin’s allegations of daily harassment by teammates.Ross said he plans to meet with Martin on Wednesday at an undisclosed location and that he has been in touch with the tackle by text.” I look forward to meeting with Jonathan Martin, discovering the facts,” Ross said.The owner vowed before Monday night’s game between the Dolphins and Tampa Bay Buccaneers to get to bottom of the allegations and create a locker room culture that “suits the 21st century.”“It couldn’t have been a worse nightmare,” said Ross, who was joined at the press conference by team president and chief executive officer Tom Garfinkel.The NFL is investigating Martin’s allegations against teammates, including Richie Incognito. Martin, 24, is with his family in California to undergo counseling for emotional issues. Incognito has been suspended indefinitely.A special investigator for the league will determine whether Incognito harassed Martin, and whether the Dolphins mishandled the matter.Ross strongly endorsed Dolphins coach Joe Philbin, saying he had the “utmost confidence” in the man he hired in 2012.“Joe Philbin is probably one of the most organized people I’ve ever met,” Ross said. “When I interviewed him that stood out, but what also stood out was his character. I don’t think there is a better person, a more respected person, a more caring person in the National Football League than Joe Philbin.”While not holding Philbin responsible, Ross said changes need to be made in his organization.“We need to look at ourselves. We have to examine everything internally,” Ross said. “This is so appalling to me. I know I’m capable of overreacting. I want to get everybody’s feedback because we all know the football locker room is a different workplace than most of us are accustomed to. I don’t want to make any excuses.”Ross said to he has formed a committee of advisers. There are five members on it now and he wants to add more in order “to protect me and them and the players from my overreacting, and having a code of conduct that suits the 21st century. Change is needed. We’re going to make sure we’re the best organization in the National Football League.”The 6-foot-4, 320-pound Martin left the team two weeks ago. His attorney has alleged that Martin was harassed daily, and Incognito acknowledged leaving a voicemail for Martin in April in which he used a racist term, threatened to kill his teammate and threatened to slap Martin’s mother.Incognito is white and Martin is biracial. Teammates both black and white have said Incognito is not a racist, and they’ve been more supportive of the veteran guard than they have of Martin.Incognito, 6-3, 319 pounds, has long been labeled one of the NFL’s dirtiest players with a reputation for out-of-bounds behavior off the field. But this season he was a member of the player leadership council, raising questions about the role of coach Joe Philbin, his staff and Miami management in the case.Also in question is the team’s role in a May 2012 incident involving Incognito. A police report said a female volunteer at a Dolphins charity golf tournament complained that Incognito harassed her, but he wasn’t charged, and news of the case surfaced only last week.Incognito, 30, has declined to say whether coaches ordered him to toughen up Martin, a second-year pro from Stanford.The scandal is the latest public-relations headache for Ross since he became majority owner of the Dolphins in 2009. They’ve endured four consecutive losing seasons, their longest such streak since the 1960s, and often play in a half-empty stadium, their local popularity eclipsed by the Miami Heat.Ross apologized to Dolphins fans “for being in this position. I know we will come out of this as a better organization.”___AP NFL website: Miami Dolphins guard Richie Incognito (68) and tackle Jonathan Martin (71) stand on the field during an NFL football practice in Davie, Fla.  (AP Photo/Lynne Sladky, File)last_img read more