New York / November 10, 2009 – Growth in total compensation was 12% and growth in salary was 5% in 2008 over 2007 for risk professionals in the energy sector according to results released today in the fifth annual Professional Compensation Survey by Risk Talent Associates, a leading risk management executive search firm. This healthy growth stands in sharp contrast to the declines in total compensation for risk managers in asset management and capital markets reported by Risk Talent Associates earlier this year for 2007-2008, a time period which includes the credit crisis and the beginning of the economic downturn. Almost 90% of respondents in the energy segment reported receiving a bonus for 2008, versus only 80% of those in asset management and capital markets.
The survey data indicates that job movement within the energy segment is slightly higher than in previous years at 25%, but predicted to go down to 17% in the next two years. While salaries have not been impacted, growth in the size of risk groups has been affected by the downturn. Only 28% of survey respondents expect that their risk management will grow in size, lower than the 38% observed in the 2008 survey and 56% reported in the 2007 survey. Michael Woodrow, founder and President of Risk Talent Associates states, “the energy sector was hurt by some of the same economic issues that haunted financial services. Due to widespread cost cutting and headcount reductions at global energy corporations, the size of risk groups is down slightly. However, energy firms realize that healthy compensation for competent risk oversight is still a necessity. We expect hiring to improve in 2009 and beyond as the global economy recovers and the demand for energy commodities, and related risk management, is reflected in these markets.”
The Energy report is the latest in a series of compensation surveys, now in their fifth year, released by Risk Talent Associates and follows earlier surveys in the capital markets and asset management. Additional surveys to be released by the end of the year include 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, Hong Kong and London.
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