Ogilvy boss: Performance bonuses should not risk all profit
James Greet and David Fox at SAGE Sydney yesterday
The CEO of Ogilvy Australia David Fox has told a forum that both agencies and their clients need to be careful how they structure performance bonuses to ensure fair remuneration and reasonable servicing and profit for each party.
Speaking at yesterday’s Secrets of Agency Excellence forum in Sydney, Fox told a panel discussion that remuneration and fair structuring on performance bonuses was one of the big challenges for the advertising industry.
“It is the ongoing problem,” said Fox. “I’ve seen this situation in some remuneration models where the agency is unhappy with it and the client is unhappy. No one is happy but no one can fix it.
And how many pieces of new business has Mr Greet won with this approach?
Isn’t it convenient for him to bash the multinationals that he has worked for for most of his career, once he is no longer with them.
Play fair James, there’s room for big, medium and small players in this market – no need to disrespect your competition, especially colleagues and friends you were once working alongside.
That David Fox fellow is one great man
any client asking an agency for an ad campaign instead of working with them to solve their business problems is an idiot.
James Greets idea of “massive change” in remuneration is not just to race to the bottom of fee proposals, but to actually jump head first until he hits the bottom and breaks the spine of the agency!!! What absolute garbage that fee models have progressed where an agency does not get paid for the bulk of their workload….
So, man leaves big media agency, says big media agency model was always broken.
What if the problem is the advertising? Who is the idiot then?
Sounds promising James.
I’m sure there will be a lot of excited media owners out there if Ikon is going to move away from the “Cash Savings” promise they have made to lure new in new business.
For Ikon to take a step away from making the media do it for less than last year just to keep the business with no upside will be refreshing.
Time will tell I guess…