New York / December 18, 2009 – Total compensation declined for risk professionals in technology and consulting in 2008 over 2007 according to results released today in the fifth annual Professional Compensation Survey by Risk Talent Associates, a leading risk management executive search firm. These declines match trends for risk professionals in asset management and capital markets reported by Risk Talent Associates for 2007-2008, a time period which includes the credit crisis and the beginning of the economic downturn.
For professionals in risk technology and software, the survey reported an average decline of 2.8% in total compensation and 1.8% in salaries. The survey demonstrated that job movement within the technology and software sector has dramatically slowed. Only 9% of survey respondents report changing jobs during the past two years, as compared to the 20-25% range reported in the three previous annual surveys for technology and software. Also reflecting the economic downturn, 38% of survey participants expect that their risk management group will grow in size, down from 59% reported in 2008 and 70% observed in 2007.
For professionals in risk consulting, the survey reported an average decline of 5% in total compensation for risk consulting professionals in 2008 over 2007. While salaries actually grew an average of 2%, cash and non cash bonuses dramatically declined during this time period. Only 68% of survey respondents in the risk consulting segment reported receiving a bonus for 2008 which was a lower percentage than risk technology (76%), asset management and capital markets (80%) and energy (90%). When analyzed by title, the salary data actually shows minor gains by most professionals (Associates, Managers, Consultants) versus dramatic declines for Partners and Managing Directors. Since more of their pay is tied to company performance, it is not surprising that the downturn would have this type of impact on total compensation.
Michael Woodrow, founder and President of Risk Talent Associates states, “under these economic conditions, we expected to see declines in all risk segments for 2008. However, hiring has certainly improved during 2009 and is picking up steam as we enter 2010. National news headlines indicate U.S. banks and securities firms will deliver compensation growth in the double-digits and risk executives would expect to see that same comeback.”
The Technology and Consulting reports are the last in a series of compensation surveys, now in their fifth year, released by Risk Talent Associates covering capital markets, asset management, energy, software/technology, consulting and corporate risk.
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.
Risk Talent Associates