28 February 2017
Visit dh.com

Salaries and bonuses rise for risk professionals

01 May 2008  |  5730 views  |  0 cash

Despite the fall out from the global credit crunch, risk professionals working in the capital markets industry saw their total compensation increase by an average of seven per cent in 2007, according to a global survey by recruitment outfit Risk Talent Associates (RTA).

Despite the tumultuous credit markets, risk managers are still valued and rewarded, says RTA, with increased bonuses continuing to be the main driver for salaries.

The survey of 600 risk professionals found there was an 11% growth in cash bonuses and six per cent rise in non-cash bonuses for 2007 over 2006.

The total compensation figures are in line with an eight per cent compound average growth rate (CAGR) since 2003, says RTA.

The highest compensation rises were for newer risk managers - those with less than six years' of experience - and less senior positions such as analysts, associates, senior associates and managers.

The survey found that compensation for market and credit risk managers is almost equal and only slightly less than compensation for those focused on enterprise risk. Geographically, New York, Asia and Europe see the highest pay levels.

Commenting on the survey, Michael Woodrow, president, RTA, says it does not appear that risk managers took the fall for issues in the markets and related losses at large companies.

"Firms recognise that a strong risk management team will sound the warning. Many of the firms hit hard by the sub-prime fallout could have averted major issues had the most senior business managers followed the advice of the risk managers," he adds.

Woodrow says risk management hiring slowed in the first quarter of 2008 as firms looked to redeploy workers, but says recruitment has picked up in the second quarter and is expected to hold up for the rest of the year.

Around 16% of risk managers have changed jobs in the last two years, with further 33% expecting to move over the next couple of years. RTA says these figures are consistent with previous years, demonstrating stability in the market.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Investment bank IT salaries hold up in face of crunch

Investment bank IT salaries hold up in face of crunch

25 April 2008  |  7711 views  |  0 comments
Crunch to squeeze sell side spending on technology

Crunch to squeeze sell side spending on technology

23 April 2008  |  8569 views  |  0 comments
Credit crunch to cost 20,000 City jobs

Credit crunch to cost 20,000 City jobs

14 April 2008  |  9220 views  |  0 comments
Bank IT spending to slow

Bank IT spending to slow

31 March 2008  |  11588 views  |  0 comments
City IT contractors cash in on crunch

City IT contractors cash in on crunch

14 February 2008  |  9303 views  |  0 comments
Bank IT staff and directors failing to understand risk

Bank IT staff and directors failing to understand risk

01 December 2000  |  2248 views  |  0 comments

Related blogs

Create a blog about this story (membership required)

Who is commenting?

A Finextra member Finextra Member Commented on: Really really really K...
A Finextra member Finextra Member Commented on: In wake of Cloudflare...
A Finextra member Finextra Member Commented on: Bank consultancy Zeb o...

Top topics

Most viewed Most shared
EBA to relax controversial PSD2 authentication rulesEBA to relax controversial PSD2 authentica...
14066 views comments | 53 tweets | 74 linkedin
BNY Mellon seeks blockchain experts for new emerging biz and tech teamBNY Mellon seeks blockchain experts for ne...
8071 views comments | 7 tweets | 4 linkedin
hands typing furiouslyBlockchain Technology
7849 views 1 | 18 tweets | 8 linkedin
Starling releases Open API, talks up marketplace modelStarling releases Open API, talks up marke...
7602 views comments | 19 tweets | 18 linkedin
Barclaycard strikes new wearable deals for contactless jewellery and watchesBarclaycard strikes new wearable deals for...
7030 views comments | 17 tweets | 15 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job