New York / September 7, 2005 – Total compensation and salaries for risk professionals in consulting practices grew modestly in 2005 by an average of 6%, according to a Professional Compensation Survey released today by Risk Talent Associates, a leading risk management executive search firm. The survey was conducted among risk management consultants in both large consulting practices and smaller specialty firms, with heavy participation by those based in the United States.
Mid-level executives with approximately 7 to 15 years experience saw their total compensation grow by 14% to just over 300,000 US dollars in 2005, outpacing both their less-experienced colleagues as well as those with sixteen or more years in professional practice.
Michael Woodrow, President of Risk Talent Associates, stated, “The maturity of risk management and the higher level of focus on risk issues have increased the need for qualified consultants in risk management. While consulting firms have traditionally paid lower compensation rates than capital market and asset management firms, compensation levels for qualified management consultants are moving upward. These consulting professionals provide complex technical and quantitative advice to clients, and based on this survey, consulting firms are paying handsomely for this talent. We expect this trend to continue.”
The survey notes that 15% of respondents reported changing employers within the last two years, a figure that is lower than the rates found in earlier industry-segmented surveys released by Risk Talent Associates. However, the majority of those who did move came from commercial and investment banking companies, as well as technology and software houses. “We’ve counseled many top risk professionals to spend a few years in consulting to round out their client-facing business skills,” said Woodrow.
This is one of four compensation surveys Risk Talent Associates is scheduled to release this month, including studies of technology, energy and corporate risk managers. Risk Talent Associates has also released compensation surveys of risk professionals in the capital markets and asset management earlier this year.
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