A New Jersey community bank has given the top executives at its brokerage affiliate new motivation: ownership.
Greater Community Bancorp in Totowa owns 51% of its full-service brokerage affiliate, Greater Community Financial, and gave the rest to the unit's three principals, said George E. Irwin, president of the bank.
Ted Doll, senior managing director, runs the brokerage with Michael Mulligan and Robert Peterson, both of whom are managing directors.
"We think we know banking business well, but we don't know the securities business," Mr. Irwin said in a telephone interview. "These guys do."
A bank brokerage consultant said the ownership structure is sure to motivate the three principals.
"The second you own something, you think differently than if you were just an employee," said Richard A. Ayotte, managing director at American Brokerage Consultants, St. Petersburg, Fla.
However, Mr. Ayotte said, Greater Community's structure is unlikely to spark a trend, because most banks want 100% ownership and control of a brokerage affiliate.
Last week, the three executives hired Bruce M. Chodash, a former colleague of theirs from Ryan, Beck & Co., West Orange, N.J. As executive vice president, Mr. Chodash is responsible for sales and training future hires. When the brokerage is fully staffed, Mr. Irwin said he expects it to have 12 employees, up from six now.
The brokerage has been fully operational since February. It will tap the bank's customer base, as well as community groups for customers who invest in mutual funds and manage their own portfolios, Mr. Irwin said.
"We feel that like most large banks, we can't do it all just on traditional banking services-that we have to be more of a financial supermarket," the bank's president said.