New York / December 4, 2008 – Growth in total compensation for risk professionals in energy and consulting is still healthy but has slowed according to results released today in two annual professional compensation surveys by Risk Talent Associates, a leading risk management executive search firm. The change in results for the energy sector is more dramatic after a banner year in 2006 with robust growth in energy demand and trading in financial markets.
For energy risk professionals, growth in total compensation slowed to 7% in 2007 over 2006, down from 14% in 2006 over 2005. The average growth rate in salaries also dropped to 5% in 2007 over 2006, down from 8% in 2006 over 2005. The survey demonstrates slightly less job movement in the energy segment. Approximately 21% of survey respondents reported changing jobs within the last two years, down from the 28% who reported job movement a year ago. Demonstrating that energy is not insulated from the economic downturn, only 38% percent of respondents expect that their risk management group will grow in size, far lower than the 56% observed last year. Michael Woodrow, founder and President of Risk Talent Associates states, “The reductions we see in the energy survey may be short-term. Especially in an uncertain economy, there remains a strong imperative to manage energy costs. Due to futures and options that are widely used in commodities markets, this requires sophisticated quantitative, risk management and oversight skills, and firms will continue to pay a premium for top talent.”
For risk consulting professionals, growth in total compensation slowed to 6% in 2007 over 2006, down from 8% in 2006 over 2005. The average growth rate in salaries also dropped to 4% in 2007 over 2006, down from 5% in 2006 over 2005. Unlike the energy sector, job movement actually increased within the consulting segment. Approximately 23% of survey respondents reported changing jobs within the last two years, more than the 18% who reported job movement in last year’s survey. This figure may rise as 26% of survey participants predict that they will change jobs in the next two years. Michael Woodrow adds, “In 2008-2009, financial services firms have an even greater need to understand how their risk management systems can prevent future meltdowns. In times such as these, banks often look to objective consultants for assistance. Furthermore, as regulatory oversight increases, financial services firms will likely use consultants to assist them in building rigorous compliance frameworks.” Fifty-eight percent of consulting survey respondents expect that their risk management group will grow in size.
These reports are the latest in a series of compensation surveys, now in their fourth year, that are released by Risk Talent Associates. These surveys follow earlier surveys in the capital markets, asset management and software/technology 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.
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