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Many of the world’s most ancient architectural structures have weathered the test of time for thousands of years because they are sustained by well-designed and properly placed columns that provide a solid, balanced underpinning of support. Likewise, Brown & Brown is bolstered by a pillar of financial strength that can support the Company’s business activities and fuel management’s aggressive goals for continued growth.
As part of the Company’s decentralized operating structure, each profit center employs an accounting manager to act as its senior financial officer, closely monitoring costs and managing business decisions at the grass-roots level where business originates. By eliminating the bureaucracy often associated with a centralized accounting system, we permit individual profit centers to operate with a great deal of autonomy in making operating decisions that produce positive financial results.
In this decentralized framework, profit centers are expected to drive toward growth and profitability. Employees are held accountable with a compensation structure that rewards decisions that deliver higher operating profits and, conversely, reduces bonuses for poor decisions. This approach results in better control of expenses and ensures that financial information is accurately and promptly reported without duplicating the efforts of corporate accounting staff. By maintaining consistent financial controls at all levels of the organization, we have successfully managed expenses and achieved impressive financial results.
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