New York / December 29, 2006 – Financial compliance professionals took home an average of 6.7% more in total compensation and 4.0% in salary in 2005 over previous year levels, according to a Professional Compensation Survey released today by Risk Talent Associates, a leading risk management executive search firm. More than 300 financial compliance professionals worldwide participated in the survey representing investment banking, commercial banking, consulting, asset management, brokerages and other sectors.
The survey reports variability in compensation according to both years of experience and title. Compliance professionals with 7-15 years of experience saw their total compensation rise 10%, while the compensation increases were highest for senior officers, including chief risk officers (8%), managing directors (9%), as well as partners and presidents (13%).
Compensation and salaries are highest for compliance professionals working at large firms, defined by over 100 risk managers. Globally, Asia reports higher total compensation and salaries, followed by US South/Southeast, New York, and Europe. Approximately 27% of survey respondents report changing jobs within the last two years, with the most popular destinations including investment banking, asset management, technology and consulting.
Michael Woodrow, President of Risk Talent Associates, states, “The talent market has tightened considerably with more firms beefing up their compliance and regulatory teams. We expect this trend to continue once bonuses for 2006 are reported. The result of the tightening market will drive compensation upward, by as much as 20% in the next six to eighteen months.”
Woodrow continues, “Another interesting trend is that firms are not only struggling to replace individuals who change firms or move out of compliance, but they are also adding positions (headcount) by as much as 15% at some firms. Newly created roles such as Global Chief Risk Regulatory Officer – to coordinate the risks of a global compliance framework – are popping up at large multinational financial services firms.”
The compliance survey is the last in a series of compensation surveys conducted by Risk Talent Associates in 2006 including capital markets, asset management, consulting, technology, corporate and energy. Risk Talent Associates will update these compensation surveys next year 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.
Risk Talent Associates