New York / November 14, 2008 – Growth in total compensation for risk professionals in software and technology has slowed to 6% in 2007 over 2006, from 9% in 2006 over 2005. The average growth rate in salaries also dropped to 4% in 2007 over 2006, down from 7% in 2006 over 2005. These were some of the results released today in the fourth annual Professional Compensation Survey by Risk Talent Associates, a leading risk management executive search firm.
The survey paints a slightly less rosy picture for this segment of risk professionals than in prior years. Fifty-nine percent of survey participants expect that their risk management group will grow in size, far lower than the 70% observed last year. Thirty-four percent expect their groups to stay the same size, while 7% expect to see staff reductions. Approximately 23% of survey respondents reported changing jobs within the last two years; this is consistent with the 20-25% reported in the two previous surveys for technology and software. However, 45% of respondents expect to stay with the same employer as compared to 26% in last year’s survey, perhaps reflecting a desire to stay the course in an economy that has turned downward.
Michael Woodrow, founder and President of Risk Talent Associates states, “There are still strong signs of hiring by risk technology firms who have differentiated offerings in corporate governance, risk and compliance. While overall compensation is not growing as dramatically as it was in years past, there are still excellent packages available to professionals with the right combination of skills to advance software solutions to companies that need to manage risk more keenly in today’s environment.” Woodrow adds, “Even with the recent implosion of firms on Wall Street, there will remain a stable market for risk technology and resulting demand for exceptional technologists.”
The survey also reports that compensation in Europe and Asia tops the northeast United States and New York. The largest risk organizations (greater than 50 risk professionals) yield higher compensation than smaller risk organizations, and professionals who focus on enterprise risk and market risk earn 5% more than those focused on credit risk.
This report is the latest in a series of compensation surveys, now in their fourth year, released by Risk Talent Associates and follows earlier surveys in the capital markets and asset management. The firm expects to quickly follow these results with studies in energy, consulting, corporate risk managers and compliance sectors.
About Risk Talent Associates
Risk Talent Associates (www.risktalent.com) is the leading international executive search firm focused exclusively on positions in the fields of market, credit and operational risk, as well as financial compliance and risk technology. Risk Talent’s expertise, industry knowledge, proprietary network and dedicated focus shorten the recruiting process to deliver senior and mid-level risk managers in the capital markets, asset management, energy, consulting and software industries. Risk Talent has offices in New York, Chicago, London, and Hong Kong.
Contact:
Jennifer Bonadio
Risk Talent Associates
410-926-9989
jbonadio@risktalent.com