Systems and method for determining the cost of a securities research department to service a client of the department
First Claim
1. A method of determining the cost of an equity research department to service a client of the department, comprising:
- estimating the time spent by each analyst of the department servicing the client over a specified period of time;
for each client, calculating a compensation-weighted time spent by the analysts servicing the client over the specified period of time; and
for each client, summing the compensation-weighted time spent servicing the client over the specified period of time by each analyst servicing the client over the specified period of time.
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Accused Products
Abstract
Embodiments of the present invention are generally directed to two different techniques for determining the cost of an equity research department to service a client of the department. The first technique generally includes estimating the time spent by each analyst of the department servicing the client over a specified period of time. The time spent servicing the client may then be adjusted based on the compensation of the analysis provider (or providers) servicing the client. Then, the compensation-weighted time of each analyst provider that serviced the client may be summed to thereby arrive at an estimate of the time and cost to service the client. In the second technique, the standard cost per unit of the different types of client touch that the equity research department produces is estimated. Then, the number and type of client touches a particular client receives over a given period of time (e.g., three months, one year, etc.) can be determined and multiplied by the standard cost per touch for the different touch types of to arrive at the total cost of servicing the client over the time period.
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Citations
22 Claims
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1. A method of determining the cost of an equity research department to service a client of the department, comprising:
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estimating the time spent by each analyst of the department servicing the client over a specified period of time;
for each client, calculating a compensation-weighted time spent by the analysts servicing the client over the specified period of time; and
for each client, summing the compensation-weighted time spent servicing the client over the specified period of time by each analyst servicing the client over the specified period of time. - View Dependent Claims (2, 3, 4, 5, 6, 7)
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8. A method of determining the cost of an equity research department to service a plurality of clients of the department, comprising:
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surveying analysts of the department, wherein the survey asks each analyst to;
estimate time spent collectively servicing the plurality of clients and the time spent collectively servicing other clients of the department over a specified period of time;
categorize the plurality of clients based consumption of the analyst'"'"'s time over the specified period of time into one of a number of client-use categories; and
estimate the time spent by the analyst collectively servicing the clients of each client-use category over the specified period of time. for each analyst, calculating a compensation-weighted time spent by the analyst servicing each of the clients over the specified period of time; and
summing the compensation-weighted time of each analyst for each of the clients.
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9. A method of estimating the cost per unit of client touches for an equity research department, the method comprising:
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estimating the number of units of one or more client touch types produced by the department over a period of time;
allocating costs of support resources of the department over the period of time to the client touch types;
allocating costs of time of analysis providers of the department over the period of time to the client touch types;
estimating the cost of per unit of the one or more client touch types by, for each client touch type, dividing the sum of the costs for the client touch type by number of units of the client touch type to create a standard cost per unit for the one or more client touch types; and
allocating costs to the client based on the consumption of client touches by the client and the corresponding standard cost per unit for the client touch type consumed. - View Dependent Claims (10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21)
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22. A method of estimating the cost per unit of client touches for an equity research department, the method comprising:
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estimating the number of units of one or more client touch types produced by the department over a period of time;
allocating costs of support resources of the department over the period of time to the client touch types;
determining time spent by analysis providers of the department over the period of time performing various activities;
allocating the cost of the time spent by the analysis providers over the period of time performing tasks related to a particular client touch type to the particular client touch type;
allocating the cost of research time spent by the analysis providers over the period of time to the one or more client touch types; and
estimating the cost of per unit of the one or more client touch types by, for each client touch type, dividing the sum of the costs for the client touch type by number of units of the client touch type to create a standard cost per unit for the one or more client touch types; and
allocating costs to the client based on the consumption of client touches by the client and the corresponding standard cost per unit for the client touch type consumed.
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Specification