New York / December 20, 2007 – Financial compliance professionals saw an increase of 8% in total compensation in 2006 over 2005, a slight improvement over the 6.7% growth reported in 2005 over 2004, according to a Professional Compensation Survey released today by Risk Talent Associates. Fifty-eight percent of respondents in financial compliance represent capital markets while the remaining 42% represent other sectors, including asset management, software, consulting, energy and corporate. This survey is the final in a series of annual salary surveys conducted by Risk Talent Associates, a leading risk management executive search firm.
With financial compliance at the forefront of ongoing events in the credit markets and multi-billion dollar losses reported by major firms, it is no surprise that this segment shows solid growth as companies improve their regulatory efforts. Approximately 20% of survey respondents reported changing jobs within the last two years, a figure that is consistent with the 20-30% range reported in other sectors by Risk Talent Associates in 2007. However, 67% of respondents say they will consider job movement in the next two years, a fact which could heat up the job market.
Michael Woodrow, President of Risk Talent Associates, states, “Firms across all market segments, including capital markets, asset management, and energy, have been continuing to increase staffing in compliance, which translates into upward pressure on compensation. For instance, one of our clients increased headcount in their regulatory/compliance group by over 200% in 2007. We expect the upward trend in both headcount and compensation to continue in 2008 as capital markets firms deal with regulatory and/or reputational risk issues that stem from the recent major write-offs due to sub-prime losses.”
The survey reports increases in compensation according to both years of experience and title. The highest increases were awarded to those with 0-6 and 7-15 years of experience compared to 16 or more years of experience, with the highest increases by title going to Senior Vice Presidents. Compensation and salaries are highest for compliance professionals working at firms with 50-100 risk managers. Also domestically, the US South/Southeast, Northeast and New York reflect the highest total compensation and salaries.
Looking ahead to 2008, Risk Talent Associates will update its annual compensation surveys including capital markets, asset management, consulting, technology, corporate and energy, to track trends in the market for risk management and financial compliance talent.
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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