This is a test on 12/11/13

1. The Westpac Group
Business Model and Comparative Analysis
Summary: Identifying the key drivers of Westpac’s bottom line and how its different brands work together. Comparing Westpac to its largest rival, Commonwealth Bank
Background
BTFG Distribution Channels
Methods
Westpac Is the oldest bank in
Australia and is currently one of the
largest members of the big four
banks which dominate the Australian
market. Westpac is a family of brands
including a wealth division in BT
Finance and an assortment of
smaller banks, Commonwealth Bank
is also a member of the big four and
is currently the largest bank in
Australia ahead of Westpac
 Extensive analysis of Westpac’s
annual report.
Advice Channel:
 Use of internal documents
 Interviews with analysts from BT
Finance
Customer
Percentage of
Fees to BTFG
Westpac’s Revenue Driver
Retail and Business Banking
- Direct Channel
 Deposits have become increasingly
important with tighter regulation
emerging after the GFC. High
deposits provide the equity to fund
many of Westpac’s higher margin
businesses
Westpac
Brands
In‐Branch
Financial
Advisor
- Corporate Channel
- Planner Channel
BT Financial Group vs. Commonwealth Bank’s Wealth Division
Price
Advised Distribution
Product Innovation
Customer Base
Brand
BT
BT Financial Group Businesses
 Insurance and Investments
Westpac’s Divisions
 Australian Financial Services
 Equity and Gearing Solutions
CBA (CFS)
 Super, Marketing and Direct
•
Westpac Retail and Business Banking
 Private Wealth
•
St. George Banking Group
 Advice
BT Financial Group
 Westpac Institutional Bank
 Westpac New Zealand
 Platforms and Operations
Key Performance Indicator
 Wealth Support
Revenue asset mgmt.
Average FUM ($bn) - ex Hambro
Average FUM ($bn) - Hambro
Average FUM ($bn) - avg total
 Consolidation
Contact Information
Daniel Cohen - Sydney Internship Program
Asset
Mgmt
(CFS
GAM)
•
BTFG
Variance
1H13 v
2H12
CBA Wealth
1H13
(Dec-12)
1H12
(Dec-11)
137
124
43
36
12
10
1.9
18%
-
0
56
46
9.6
21%
161
142
Variance
%
1H13 (Dec12)
1H12
(Dec-11)
1H13 v
2H12
%
13
10%
406
379
27
7%
7.7
21%
-
0
19
13%
Conclusions
Westpac is driven by its retail banking but hopes BTFG will grow and become a major driver. Westpac is position
well with Commonwealth atop the Australian market but BTFG lags behind CBA Wealth’s position of dominance.

2. HOW MUCH DO THEY DE$ERVE?
The Determinants of CEO Compensation in the United States
Question: What factors are most influential on the various types of CEO compensation in America?
Background / Purpose
• CEOs are paid more than
200x the average salary of
an employee in the same
company
• Firms have a responsibility
to disclose their
compensation for
executives every year to
shareholders
Methods
• Data is sourced from
Bloomberg
• All profitability measures are
one year
• Regressed each category on
separate forms of
compensation and then
together to determine when
variables were important
• How to best structure
payments to CEOs to
maximize firm value
High
Research Goals
Medium
Contact Information
Marc Gruenhut; London Internship Program
Source: Economic Policy Institute
Importance of Category
Size:
Assets, Market Cap,
Employees
CEO Attributes:
Male/Female, Tenure, Board Size
Low
Conclusions
• Firm size is the most important variable,
and market cap is the best proxy for size
• Profitability is minimally correlated
• CEOs are paid more in incentive-based
compensation and less with salary as
tenure increases
• A larger board leads to less control over the
CEO, and more compensation
• Used 2012 data on S&P 500
• Occupy Wall Street has
spotlighted excessive
compensation
To examine the effects of
firm size, personal attributes,
and profitability on the
various measures of CEO
compensation
Growth of CEO Pay in the U.S.
Profitability:
Return on Assets, Stock Price Return, EPS Growth,
EBITDA Growth
Types of Compensation and
Correlation to Category
Total
Compensation
• Size variables most positively correlated
• Market capitalization is the best proxy for
size in study
• Females underpaid when considering total
compensation
Base Salary
• Board size positively correlated to base salary
• Higher tenure leads to lower base salary but
more incentive-based compensation
Incentive – Based
Compensation:
Bonus, stock
options, etc.
• Profitability is positively correlated (ROA)
• Low explanatory power
• Longer tenure leads to higher incentive-based
compensation

3. WUride
Take a Trip With WUride
An easy way to get around campus without the commitments of owning a vehicle and all of the hassles that come
with them.
Background
Methods
 After spending six months in Rio
de Janeiro, I realized that
simplicity is what people enjoy the
most
 One way to make bike rentals easier
is for WashU to rent bikes out to
people on a by need basis
 Community bikes provide people
with a way to commute while
eliminating the commitment that a
car or personal bike can result in
 As students with routines that
change on a nearly day-to-day
basis, having to pay a large
upfront cost is daunting because
we have no idea when that
investment will suddenly become
wasted
 With everyone having a busy
schedule, being able to get from
place to place in an efficient
manner is important so that time is
not wasted
 WashU will place bike racks/docks all
around campus and people can rent
them for a 24 hour period by simply
swiping their WashU ID and paying a
nominal fee ($1)
 WashU can offer a yearly unlimited
access option which will save money
for those that anticipate on using
bikes often
 Bike repairs would be the
responsibility of the school, not the
individuals that rent them
 Students can take a bike from any
dock and return it to any other dock,
where it will register as being
returned
Who Gains?
• Students
 Less expensive
 Lack of commitment
 More convenient
 Time saving
 Exercise inducing
 WUSTL
 Energy saving
 Revenue producing
 Advertising opportunities
 More efficient
 Congestion eliminating
Locations
 Danforth University Center
 Brookings Hall
 South 40 Dorms
 Simon Hall
 The Village
Contact Information
 Bear’s Den
 Olin Library
 Art School
 Athletic Complex
Eric Weinstein
October 15, 2013
300B Applying Intl. Experiences
Profs. Elfenbein and Orahood