113 / 113
Analysis of Agencies with Revenues Greater Than $10,000,000
113 of 113
Net revenues divided by the average number of “full-time equivalent” employees your agency employed
during the most recently completed fiscal year.
Spread Per Employee:
Total revenue per employee minus compensation per employee. While revenue per employee has been a
standard productivity measure, the “spread” measures the dollars per employee available to pay all other
agency expenses and generate a profit for the agency. It is another measure of productivity.
Stockholders’ Equity:
Total assets minus total liabilities. Stockholders’ equity reflects the “book value” of a firm.
Tangible Net Worth:
Total assets minus intangible assets equals total tangible assets. Total tangible assets minus total liabilities
equals tangible net worth. The tangible net worth is an important measure as it represents the net value of
the corporation if it were liquidated.
Validated Producer:
Salesperson whose production supports the compensation received based on the existing producer
compensation percentage, formula or method used by the agency. If a salesperson has been with the agency
for over three years, they should be included as validated even if they are not.
Weighted Performance:
In order to arrive at an overall measure of performance, we have scored, weighted and compiled each of the
individual performance factors listed.
Working Capital:
Current assets minus current liabilities. This measures an agency’s ability to meet short-term obligations.
QUESTIONS REGARDING THE STUDY RESULTS CAN BE DIRECTED TO:
Reagan Consulting
7 Piedmont Center, Suite 417
Atlanta, GA 30305
Email :
infor@reaganconsulting.comPhone: 404-233-5545
Fax: 404237-5996