New York / October 24, 2011 – Total compensation for risk professionals in the capital markets has continued its rebound after the dip that persisted from 2006 and 2008. Between 2009 and 2010, total compensation grew by an average of 7% and salaries increased an average of 4%, an improvement over gains between 2008 and 2009. These figures were reported in the seventh annual Professional Compensation Survey by Risk Talent Associates, a leading risk management executive search firm.
The survey also reveals trends in job movement: the percentage of respondents who reported changing jobs in the last two years was 18% overall, but differed between junior and senior level participants. For those with less than 6 years of experience, a third (33%) of participants reported changing jobs, as compared to 23% of those with 7-10 years of experience, 19% of those with 11-15 years of experience, and 13% of those with more than 16 years of experience. For junior risk managers, a healthier job market and heightened focus on risk has improved the range of job opportunities. For senior positions, employers’ requirements for specific risk skills have become more demanding.
Michael Woodrow, President of Risk Talent Associates, notes, “for senior level positions, employers are looking to put round pegs into round holes. They are looking for senior risk officers who have been there/done that. Furthermore, Chief Risk Officer positions require an increasing responsibility for regulatory interface, and candidates must bring these experiences and capabilities to the table.” Mr. Woodrow adds, “there is also a trend toward board involvement in the selection of a chief risk officer. Savvy risk committee members will ask candidates probing questions. Only the strongest survive these deep interview processes. We are also seeing a trend toward firms considering only CRO’s who have previous CRO experience.”
The survey results by title reveal that growth in total compensation is strongest for Managing Director/Executive Director and CRO positions, with an average in the $600,000 to $800,000 range. While these numbers are high, they are still lower than results that topped $800,000 for Managing Directors and $1 million for Chief Risk Officers in surveys prior to 2008.
This year’s risk salary survey included input from over 225 risk professionals in the capital markets, with 75% representing commercial and investment banks and 25% representing other areas such as government sponsored entities, credit card, mortgage brokers and lenders, rating agencies and financial exchanges. Risk Talent Associates, an executive search firm focused on risk management, will publish additional survey updates in 2011 including asset management, software, consulting, energy and corporate. All surveys analyze compensation trends by years of experience and title, industry segment, risk focus, geography and size of company.
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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