Banking & Financial Services Salary Survey - Hudson

uk.hudson.com

Banking & Financial Services Salary Survey - Hudson

2011

salary

guide


2011

salary

guide

contents

introduction

About Hudson Banking & Financial Services

London Salary and market information

Compliance

corporate Finance/Advisory

Financial Services

investment Banking

operations

risk

temporary/Contract

contact us

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2011

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introduction

Welcome to the Hudson

Banking & Financial

Services Salary Guide for

2011.

WE HOPE YOU FIND THIS AN

INSIGHTFUL REPORT, NOT ONLY

INTO SALARIES AND BENEFITS,

BUT ALSO INTO THE BROADER

RECRUITMENT TRENDS WE

FORESEE IN THE BANKING

& FINANCIAL SERVICES

MARKETPLACE FOR 2011.

The Hudson Banking & Financial Services

2011 Salary Guide reflects how salaries have

fluctuated across the industry. It contains

market overviews and salary information for

each major specialist area and forecasts

how these areas will develop in the coming

months.

The figures have been thoroughly

researched by our industry experts and

come from a variety of sources including

job offers by clients, candidate disclosure

of salaries and advertised salaries. We have

also taken into account current market

conditions and forecasts as well as our many

years of collective experience between our

recruitment experts. It is important to note

that all salaries are dependent on a number

of key factors such as size of company,

location and sector.

Please note that this document should be

used as a guide only. Please feel free to

contact one of our consultants if you have

specific queries and they would be delighted

to assist you.

Whether you are looking for a new key

employee, developing a volume recruitment

campaign or if you are a candidate seeking

advice on your job search, Hudson is best

placed to support your needs.

Regards,

Hudson Banking & Financial Services

Banking & Financial Services | Salary Guide 2011 1


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About Hudson Banking

& Financial Services

Hudson is a leading provider of specialised

recruitment, contract professionals,

recruitment outsourcing and talent

management solutions worldwide. The

Hudson Banking & Financial Services team

specialise in the provision and retention

of the most innovative and talented

professionals across front and middle office.

We boast a highly successful track record

of working in partnership with many of the

world’s leading investment banks, asset

managers, brokers and financial services

firms.

Our approach to recruitment is multi-faceted

with search and networking at its core. With a

team of consultants across the UK, many of

whom are qualified in banking and financial

services, we have in-depth knowledge and

understanding of the sector.

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banking & financial services specialists

Our consultants focus on specific role levels and sectors. The team has five specialist areas including:

advisory/

investment

compliance finance OPERATIONS

risk

management

Acquisitions Anti Money Laundering Business Analysis Asset Servicing Credit Analysis

Corporate Finance Asset Management Financial Analysis Collateral Credit Risk

Debt Advisory Central Compliance Financial Control Documentation Economic Capital

Equity Capital Markets Control Groups Financial Planning Loans Closing/Admin Financial Modelling

Equity Research Group Compliance Fund Accounting Prime Brokerage Market Risk Control

Mergers Insurance Internal/External Audit Projects/BAs Market Risk Management

Principal Investment Investment Banking Management Accounting Settlements Quantitative Risk

Restructuring Monitoring Product Control Stock Lending Risk Architecture

Situations Products Advisory Support Regulatory Accounting Trade Support Valuations

Registrations/T & C Technical Accounting Valuations Operational Risk

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LONDON SALARY AND

MARKET INFORMATION


2011

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2011

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Compliance

The compliance recruitment market in

2010 rallied from a relatively quiet period

in late 2009 as the large investment and

corporate banks re-initiated their regulatory

recruitment drive. The sub-prime fall out had

led to numerous streaming initiatives which

ultimately led to a down-sizing of teams

during 2008/2009. However, the growing

recognition of a forthcoming wave of new

rules and regulations meant that many of

these teams needed to be strengthened and

enhanced.

The prime sectors that spearheaded this

drive were the bulge-bracket banks, private

banks and brokerage firms. New regulations

from the FSA - including MiIFD II and EMIR

- meant that monitoring, surveillance and

product advisory specialists were once again

in strong demand. The reputational need for

large financial institutions to be at least seen

bolstering their compliance teams meant

that Q1 2010 was one of the busiest period

within recent compliance recruitment history.

Interestingly, this spur of recruitment activity

did not trickle down to the buy-side initially

but activity in the asset management sector

slowly increased by Q3/Q4.

Particular growth areas included control

room and surveillance personnel. It is also

worth noting that the competition for strong

and specialised candidates often led to

multiple-offer scenarios. Collateral to this

was a corresponding increase in base

salaries which further accelerated mobility

at the mid-to-senior end of the market.

Some vice president level candidates found

themselves presented with offers which were

30% higher than their current salary for the

same job. A good example is the MLRO

space - a number of key

high-level candidates were tempted by

inflated salaries at rival organisations which

in turn led to a roundabout number of

changes within the leading investment banks.

Other areas declined slightly, mainly in the

central compliance teams i.e. PA dealing and

registrations.

Demand for temp personnel increased,

due to a combination of a need for good

employees and on-going budget restrictions.

Many firms had projects which needed

immediate personnel staffing and this in turn

also inflated the temp/interim market. The

recent remuneration code also encouraged

specialist compliance staff to seek tax

mitigation and shelter which led to many

operating through corporate umbrella

structures rather than PAYE. To get around

the implications of the code and to act as a

retention tool, some banks offered higher

base salaries or fixed payment amounts

rather than offering bonuses at previous

levels.

So far this year the buy-side has caught up

fully and we are seeing significant increased

activity in this sector. Inversely, the number

of roles within the investment banking sector

has fallen as these institutions have reached

saturation point or are reviewing staff levels

within compliance. We still however have

some replacement hires as competition for

specialist compliance staff still remains in

force.

We envision a high flow of recruitment

activity across all sectors as asset

management recruitment increases and the

investment banking/brokerage sectors ticks

over. We also anticipate a continual interest

in specialisms primarily in the regulatory

change, surveillance, reviews and financial

crime areas - these will be the hot areas for

compliance recruitment throughout 2011.

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Compliance

Permanent

INVESTMENT BANKING

0-2 YEARS'

EXPERIENCE (£)

0-4 YEARS'

EXPERIENCE (£)

4-8 YEARS'

EXPERIENCE (£)

8+ YEARS'

EXPERIENCE (£)

Monitoring 30,000 - 42,000 42,000 -60,000 60,000 - 85,000 85,000+

Control Room 35,000 - 45,000 45,000 - 65,000 65,000 - 90,000 90,000+

AML/KYC 28,000 - 42,000 42,000 - 60,000 60,000 - 85,000 85,000+

Equities - Advisory 40,000 - 50,000 50,000 - 75,000 75,000 - 95,000 95,000+

Fixed Income - Advisory 40,000 - 50,000 50,000 - 75,000 75,000 - 95,000 95,000+

Commodities - Advisory 40,000 - 45,000 45,000 - 65,000 65,000 - 85,000 85,000+

Brokerage 40,000 - 45,000 45,000 - 65,000 65,000 - 85,000 85,000+

Asset Management 30,000 - 40,000 40,000 - 60,000 60,000 - 75,000 75,000+

Contract/Temporary - Day rate

INVESTMENT BANKING

0-2 YEARS'

EXPERIENCE (£)

0-4 YEARS'

EXPERIENCE (£)

4-8 YEARS'

EXPERIENCE (£)

8+ YEARS'

EXPERIENCE (£)

Monitoring 200 -300 300 - 400 400 - 500 500+

Control Room 250 -350 350 -450 450 -600 600+

AML/KYC 150 - 200 200 - 350 350 -500 500+

Equities - Advisory 250 - 350 350 - 500 500 - 600 600+

Fixed Income - Advisory 250 - 350 350 - 500 500 - 600 600+

Commodities - Advisory 150 -200 200- 350 350 -500 500+

Brokerage 150 - 200 200 - 350 350 - 500 500+

Asset Management 150 - 200 200 - 350 350 -600 600+

London

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CORPORATE FINANCE/ADVISORY

There was a real appetite in demand for

execution experience in Q1 within M&A and

corporate finance. There was a strong deal

flow in the market with many private equity

and corporate firms taking advantage of the

improved market conditions thus increasing

the demand for advisory corporate finance.

As with every economic down turn you see

a slow down in the hiring at the junior level.

This 18 month reduction in hiring at the

lower level has now resulted in a deficit of

candidates with execution and transactions

experience. We are now seeing a real

shortage of talent at the analyst three and

associate one level both within top tier banks

and smaller boutiques.

We have still seen a significant difference in

the base salary between the bulge bracket

banks and boutique corporate finance

houses. The increased base within the

bulge brackets is making hiring out of these

institutions increasingly difficult for

mid-market houses. Historically you would

find a mix of ex-bankers and accountants

within these firms. Currently boutiques

are being forced to rely more heavily on

professional services advisory corporate

finance teams to add to their ranks.

The ECM (Equity Capital Markets) market

has also significantly increased its demand

for candidates. Many companies held off

from listing over the past couple of years.

Consequently candidates are needed at

the associate director level with experience

in dealing with organisations and their

corporate finance needs.

Bonuses have been mixed. Some bulge

bracket bankers have had bonuses ranging

between the 40-100% mark with boutiques

ranging from 30 -200%. On the whole the

boutique bankers seem to be the happier.

As a general rule the market is candidate

scarce with experienced deal practitioners

finding themselves with plenty of

opportunities.

The private equity market is still slow on the

hiring front. We have again seen an increase

in the demand for execution experience

at the analyst level. However the market

seems slow with many houses struggling

to raise funds due to the high price of debt.

Candidates that are in demand are those that

can bring both transactional and strategic

experience to the table often having done

stints with top tier investment banks and

strategy houses.

We do envisage more hiring within the

private equity space later in the year if

market confidence continues to return.

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CORPORATE FINANCE/ADVISORY

Permanent

Permanent

BOUTIQUE

0-2 YEARS'

EXPERIENCE (£)

INTERNAL M&A

0-2 YEARS'

EXPERIENCE (£)

Director 100,000 - 150,000

Director 120,000 - 150000

Associate Director 75,000 - 100,000

Associate Director 75,000 - 100,000

Associate 3 65,000 - 75,000

Associate 3 65,000 - 75,000

Associate 2 60,000 - 65,000

Associate 2 60,000 - 65,000

Associate 1 55,000 - 60,000

Associate 1 55,000 - 60,000

Analyst 3 45,000 - 50,000

Analyst 3 45,000 - 50,000

Analyst 2 40,000 - 55,000

Analyst 2 40,000 - 55,000

Analyst 1 30,000 - 40,000

Analyst 1 30,000 - 40,000

INVESTMENT BANK

Director 150,000 - 200,000

Associate Director 100,000 - 130,000

Associate 3 90,000 - 100,000

Associate 2 80,000 - 90,000

Associate 1 70,000 - 80,000

Analyst 3 60,000 - 70,000

Analyst 2 55,000 - 65,000

Analyst 1 50,000 - 60,000

London

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Financial Services

As an industry, we found ourselves entering

2010 with anxious optimism. Organisations

were keen to utilise their newer, slender

structure imposed upon them by either

excessive write-downs or more strategic cost

cutting exercises. Recruiters were hastily

developing their knowledge of specialist

growth areas including regulatory reporting,

projects/change and also cost decision

support roles.

Early 2010 started where December 2009

left off setting a steady pace for the rest of

the year. Projects and “change the bank”

roles were expected but the amount released

in January alone surpassed expectations,

with the trend heavily towards business

analysts with accounting qualifications.

As in 2009, 2010 also saw an increase in

basic salaries, with newly qualified salaries

rising to as high as £60,000 for a handful of

firms and the majority rising to the £58,000

mark. It became increasingly more difficult

to secure an assistant vice president for less

than £70,000 and senior vice president level

salaries within product control rose as high

as £115,000.

At the newly qualified end of the market,

rising salaries in practice and increased

competition for the best candidates played

the biggest role. Practice firms were paying

the price for making drastic redundancies in

2008. Because of this and the decreased

graduate intake in 2009; there was a

depleted pool of resources. Again at the

assistant vice president level, firms that had

either made redundancies or just not hired at

the newly qualified level in late 2008/2009

had a lack of resource at the newly promoted

assistant vice president level. There has been

a dramatic increase at the vice president

level. This is due to there now being a vice

president bottleneck emerging in a number

of firms with more people waiting to take

the step to director. We feel this increase

will continue creating either an unclear

division between vice president and director,

or director levels will need to increase

accordingly.

So far this year we have seen that the

European banks are the more aggressive.

Banks that had previously focused on offshoring

are starting to re-hire critical roles

in the UK at more junior levels. This is not

the first time that the quality of production

in off-shore locations has been brought into

question. The appetite for newly qualified

candidates is set to continue. Experienced

assistant vice president candidates within

the product control space that have had

exposure to process/systems improvements,

but can still be hands on and manage the

daily PNL process appear to be most in

demand. Valuation experts in the credit and

rates space are a close second and IT cost

specialists with the ability to support the

business were also highly requested. At

least four tier one banks looked for senior

specialists in this area in Q1 alone.

With bonuses across the board lower than

even the most managed of expectations,

potential earnings and bonuses are now

playing less of a deciding factor when

candidates are moving. A common statement

heard when speaking to candidates is “my

bonus is low, but no one is paying high

bonuses so where would I go?” Candidates

are now taking more of an interest in

company culture, development opportunities,

team structure and the work life balance.

They are far more upfront in what they

expect from their career experience. With the

softer side of the process highlighted to such

an extent we suggest the return for more

informal additions to the interview process

to make more of an impact on a candidate’s

decision. For example coffees, team drinks

and tours of the office will make a bigger

difference now than at any other point in the

past three years.

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Financial Services

Permanent

Part Qualified

FOUNDATION ACA/

ACCA/CIMA (£)

INTERMEDIATE ACA/

ACCA/CIMA (£)

FINALIST ACA/ACCA/

CIMA (£)

Management Reporting 20,000 - 30,000 35,000 - 45,000 40,000 - 50,000

Management Accounting 25,000 - 35,000 35,000 - 45,000 40,000 - 50,000

Project/Business Analyst 25,000 - 35,000 35,000 - 45,000 40,000 - 50,000

Fund Accounting 25,000 - 30,000 30,000 - 40,000 40,000 - 50,000

Financial Control 25,000 - 35,000 30,000 - 45,000 40,000 - 45,000

Financial Reporting 25,000 - 35,000 30,000 - 40,000 40,000 - 45,000

Regulatory Accounting 25,000 - 35,000 30,000 - 40,000 40,000 - 45,000

Product Control 25,000 - 35,000 35,000 - 50,000 45,000 - 55,000

Contract/Temporary - Day rate

Part Qualified

FOUNDATION ACA/

ACCA/CIMA (£)

INTERMEDIATE ACA/

ACCA/CIMA (£)

FINALIST ACA/ACCA/

CIMA (£)

Management Reporting 140-175 160-200 180-230

Management Accounting 140-175 160-200 180-230

Project/Business Analyst 140-200 160-210 180-240

Fund Accounting 140-175 160-200 180-230

Financial Control 140-180 160-210 180-240

Financial Reporting 140-175 160-200 180-230

Regulatory Accounting 140-180 160-200 180-230

Product Control 140-180 160-210 180-240

London

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Financial Services

Permanent

Qualified

NEWLY QUALIFIED ACA/

ACCA/CIMA (£)

1-3 YEARS' PQE ACA/

ACCA/CIMA (£)

4-5 YEARS' PQE ACA/

ACCA/CIMA (£)

Management Reporting 50,000 - 55,000 52,000 - 60,000 60,000 - 80,000

Management Accounting 50,000 - 55,000 52,000 - 60,000 60,000 - 80,000

Project/Business Analyst 50,000 - 55,000 55,000 - 65,000 65,000 - 85,000

Fund Accounting 50,000 - 55,000 55,000 - 65,000 65,000 - 85,000

Financial Control 50,000 - 60,000 55,000 - 65,000 65,000 - 85,000

Financial Reporting 50,000 - 54,000 54,000 - 60,000 60,000 - 80,000

Regulatory Accounting 50,000 - 54,000 54,000 - 60,000 60,000 - 80,000

Product Control 50,000 - 60,000 55,000 - 65,000 65,000 - 85,000

Contract/Temporary - Day rate

Qualified

NEWLY QUALIFIED ACA/

ACCA/CIMA (£)

1-3 YEARS' PQE ACA/

ACCA/CIMA (£)

4-5 YEARS' PQE ACA/

ACCA/CIMA (£)

Management Reporting 225 -280 250-400 350-500

Management Accounting 225-280 250-400 350-500

Project/Business Analyst 225-300 250-400 350-550

Fund Accounting 200-250 250-400 350-500

Financial Control 225-280 250-400 350-550

Financial Reporting 225-280 250-400 350-500

Regulatory Accounting 225-300 250-400 350-550

Product Control 225-300 250-400 350-550

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Financial Services

Permanent

Senior Qualified

6-8 YEARS' PQE ACA/

ACCA/CIMA (£)

8+ YEARS' PQE

EXECUTIVES (£)

Management Reporting 70,000 − 100,000 90,000 +

Management Accounting 70,000 − 100,000 90,000 +

Project/Business Analyst 70,000 − 100,000 90,000 +

Fund Accounting 70,000 − 100,000 90,000 +

Financial Control 70,000 − 100,000 90,000 +

Financial Reporting 70,000 − 100,000 90,000 +

Regulatory Accounting 70,000 − 100,000 90,000 +

Product Control 70,000 − 100,000 90,000 +

Contract/Temporary - Day rate

Senior Qualified

6-8 YEARS' PQE ACA/

ACCA/CIMA (£)

8+ YEARS' PQE

EXECUTIVES (£)

Management Reporting 450 - 600 550+

Management Accounting 450-600 550+

Project/Business Analyst 450-650 600+

Fund Accounting 450-600 550+

Financial Control 450-600 600+

Financial Reporting 450-600 550+

Regulatory Accounting 450-600 600+

Product Control 450-600 600+

London

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Investment Banking

Last year saw a gradual pick-up in hiring

which put increased pressure back on

salaries generally within asset management.

It was a challenging year for many of our

alternative investment organisations as a

flight to safety saw downward pressure on

their AUM causing them to look at their

overheads and back office staffing level.

However many larger established asset

management firms benefited from this flight

to safety and recruitment in this area was

buoyant.

Particularly in demand have been

experienced fund accountants, candidates

with good regulatory reporting experience

and proven finance directors. Bonuses have

picked up slightly compared to 2009 but are

still less generous than they were before the

credit crisis.

Throughout 2011 we expect to see an

increase in market confidence, leading to

more activity in the job market which will put

further pressure on salaries.

14 Banking & Financial Services | Salary Guide 2011


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INVESTMENT BANKING

Permanent

Part Qualified

FOUNDATION ACA/

ACCA/CIMA (£)

INTERMEDIATE ACA/

ACCA/CIMA (£)

FINALIST ACA/ACCA/

CIMA (£)

Management Reporting 20,000 - 30,000 35,000 - 45,000 40,000 - 50,000

Management Accounting 25,000 - 35,000 35,000 - 45,000 40,000 - 50,000

Project/Business Analyst 25,000 - 35,000 35,000 - 45,000 40,000 - 50,000

Fund Accounting 25,000 - 30,000 30,000 - 40,000 40,000 - 50,000

Financial Control 25,000 - 35,000 30,000 - 45,000 40,000 - 45,000

Financial Reporting 25,000 - 35,000 30,000 - 40,000 40,000 - 45,000

Regulatory Accounting 25,000 - 35,000 30,000 - 40,000 40,000 - 45,000

Product Control 25,000 - 35,000 35,000 - 50,000 45,000 - 55,000

Contract/Temporary - Day rate

Part Qualified

FOUNDATION ACA/

ACCA/CIMA (£)

INTERMEDIATE ACA/

ACCA/CIMA (£)

FINALIST ACA/ACCA/

CIMA (£)

Management Reporting 140-175 160-200 180-230

Management Accounting 140-175 160-200 180-230

Project/Business Analyst 140-200 160-210 180-240

Fund Accounting 140-175 160-200 180-230

Financial Control 140-180 160-210 180-240

Financial Reporting 140-175 160-200 180-230

Regulatory Accounting 140-180 160-200 180-230

Product Control 140-180 160-210 180-240

London

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INVESTMENT BANKING

Permanent

Qualified

NEWLY QUALIFIED ACA/

ACCA/CIMA (£)

1-3 YEARS' PQE ACA/

ACCA/CIMA (£)

4-5 YEARS' PQE ACA/

ACCA/CIMA (£)

Management Reporting 50,000 - 60,000 60,000 - 68,000 65,000 - 75,000

Project/Business Analyst 52,000 - 58,000 N/A N/A

Financial Control 52,000 - 60,000 60,000 - 70,000 70,000 - 90,000

Financial Reporting 50,000 - 58,000 58,000 - 70,000 70,000 - 85,000

Regulatory Reporting 50,000 - 58,000 55,000 - 70,000 70,000 - 100,000

Product Control 52,000 - 60,000 60,000 - 75,000 75,000 - 95,000

Financial Decision Support 50,000 - 58,000 55,000 - 70,000 70,000 - 85,000

Contract/Temporary - Day rate

Qualified

NEWLY QUALIFIED ACA/

ACCA/CIMA (£)

1-3 YEARS' PQE ACA/

ACCA/CIMA (£)

4-5 YEARS' PQE ACA/

ACCA/CIMA (£)

Management Reporting 225 - 310 270 - 375 300 - 500

Project/Business Analyst 200-300 300-400 400-500

Financial Control 200-300 300-400 400-500

Financial Reporting 200-300 300-400 400-500

Regulatory Reporting 200-300 300-400 400-600

Product Control 200-300 300-400 400-600

Financial Decision Support 200-300 300-400 400-500

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INVESTMENT BANKING

Permanent

Senior Qualified

6-8 YEARS' PQE ACA/

ACCA/CIMA (£)

8+ YEARS' PQE

EXECUTIVES (£)

Management Reporting 80,000 - 95,000 100,000 +

Financial Control 80,000 - 95,000 100,000 +

Financial Reporting 75,000 - 90,000 100,000 +

Regulatory Reporting 90,000 - 105,000 100,000 +

Product Control 85,000 - 100,000 100,000 +

Financial Decision Support 80,000 - 90,000 100,000 +

Contract/Temporary - Day rate

Senior Qualified

6-8 YEARS' PQE ACA/

ACCA/CIMA (£)

8+ YEARS' PQE

EXECUTIVES (£)

Management Reporting 450 - 600 500 - 800

Financial Control 400-600 500-800+

Financial Reporting 400-600 500-800+

Regulatory Reporting 400-500 500-600+

Product Control 400-500 500-600+

Financial Decision Support 400-550 500-600+

London

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INVESTMENT BANKING

Permanent

ANALYST/NQ (£) ASSISTANT VP (£) VP (£)

Change Management

PMO 50,000 - 58,000 60,000 - 74,000 75,000 - 100,000

Project/Change Manager N/A N/A 75,000 - 100,000

Programme Manager N/A N/A 80,000 - 100,000

Business/Change Analyst 50,000 - 58,000 60,000 - 72,000 75,000 - 100,000

Lead Business/Change Analyst N/A 70,000 - 75,000 75,000 - 100,000

Contract/Temporary - Day rate

ANALYST/NQ (£) ASSISTANT VP (£) VP (£)

Change Management

PMO 350 - 400 400 - 450 450 - 550

Project/Change Manager 300-400 350-400 450-700+

Programme Manager N/A 350-450 600-1000+

Business/Change Analyst N/A 350-500 600-800+

Lead Business/Change Analyst N/A 400-500 550-800+

18 Banking & Financial Services | Salary Guide 2011


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Operations

Recruitment for 2010 in operations was

rather unpredictable. After the market crash

and low volumes in 2008/2009 no-one

knew what to expect. However, Q1 and Q2

saw high volumes of permanent hiring and

Q4, ordinarily a period where recruitment

tends to slow down, saw a steady flow

of jobs as hiring managers were either

preparing for 2011 or looking to use up

remaining headcount.

Despite this increase in volume it was by

no means an easy period. Organisations

expectations and the type of roles they were

looking to recruit had changed dramatically.

Typical back office and “core” operations

roles such as settlements and reconciliations

were largely not in demand. This is because

a number of the investment banks had

off-shored or near-shored these areas away

from London as a cost saving measure. The

knock-on effect of these candidates no

longer being based in London is a lack of

candidates following the natural progression

into middle office.

With the need for these back office roles

now at a minimum the emphasis in London

shifted to process improvements, projects,

exposure to multiple asset classes, change

management and new market initiatives.

Generally, organisations were no longer

looking for someone who could purely do

the job but someone who could add value

in other ways and drive new processes and

procedures. Consequently the calibre of

candidate organisations looked for rose and

the recruitment process became increasingly

difficult and drawn-out.

Although there was a steady flow of

candidates throughout the year, there was

a distinct lack of back office professionals

coming into middle office. There was also a

deficiency of those with relevant exposure

that met the high standards/expectations of

organisations.

The highest volume of candidate movement

was in Q1 and Q2. This was mainly due

to candidates feeling they did not receive

the salary increase or bonus they felt they

deserved. Therefore, with this discontent

towards their compensation and hearing the

job market had picked up, many candidates

took the plunge to look for a new role. This

was refreshing to see from a recruitment

aspect, as the majority of candidates for the

previous two years had preferred to remain

in their current roles. Despite poor bonuses

candidates were fearful of not being able to

obtain another role.

Although temporary recruitment had stayed

pretty constant prior to 2010 the same could

not be said for permanent, but in 2010 this

changed. There was still a need for temp

workers but in general hiring managers

preferred to hire on a permanent basis

where applicable. There was a substantial

need for AVP/VP/manager level personnel;

therefore hiring a temp in this space is not

ideal. Having said that, where volumes were

particularly high, especially in the projects/

change management space, or if there was

an immediate requirement, organisations

tended to hire temps.

As confidence increased in the market,

candidates realised they could move to a

similar role and receive a large pay rise in the

process. This mainly came form the banks

that took the initiative and realised that in

order to attract the high level candidates they

wanted they would need to pay attractive

salaries. Due to tighter government/FSA

regulations and the fact that “big bonuses”

are often frowned upon, the focus has moved

away from high bonuses and more towards

an increase in base salary and benefits.

Candidates also understand that these

bonuses are mainly a thing of the past and

as a result look to gain a higher base salary

elsewhere. Some institutions were also more

willing to pay higher base salaries as they

had more of a problem attracting quality

candidates.

We expect recruitment volumes to remain

high throughout the year. Once all bonuses

have been paid, candidates will either be

unhappy with what they received or those

looking for a new challenge will be more

willing to move. In addition, managers

will have had their headcounts/budgets

approved and therefore looking to use them.

We do not expect much of a change to last

year with regards to the types of roles being

recruited for. Organisation’s expectations

have remained the same and the candidates

in demand will be those who can carry out

project work in addition to their business

as usual tasks. Demand for back office

candidates will remain low due to these

roles sitting away from London. Most banks

will look to bulk up their middle office areas

across all asset classes but particularly in

interest rate derivatives, credit derivatives

and equity derivatives. In addition, due to the

market crash and where pure reconciliation

and settlement roles tend to have been off/

near-shored, there has been and will be more

emphasis on risk and controls within middle

office. This is attractive to candidates as they

gain more exposure and responsibility on top

of their more traditional middle office/trade

support duties.

London

Banking & Financial Services | Salary Guide 2011 19


2011

salary

guide

OPERATIONS

Permanent

ANALYST (£) ASSOCIATE (£) AVP (£) VP+ (£)

Investment banking

Trade support 35,000 - 45,000 45,000 - 60,000 60,000 - 75,000 75,000 +

Documentation Drafting 35,000 - 45,000 45,000 - 60,000 60,000 - 75,000 75,000 +

Documentation Confirmations 30,000 - 38,000 38,000 - 50,000 50,000 - 70,000 70,000 +

Collateral Management 35,000 - 45,000 45,000 - 60,000 60,000 - 75,000 75,000 +

Valuations 32,000 - 40,000 40,000 - 55,000 55,000 - 70,000 70,000 +

Corporate Actions 30,000 - 38,000 38,000 - 50,000 50,000 - 65,000 65,000 +

Dividends/Income Processing 28,000 - 35,000 35,000 - 48,000 48,000 - 60,000 60,000 +

Project Managers N/A N/A 65,000 - 80,000 80,000 +

Business Analysts 35,000 - 45,000 45,000 - 60,000 60,000 - 75,000 75,000 +

Settlements 30,000 - 38,000 38,000 - 50,000 50,000 - 70,000 70,000 +

Client Services 30,000 - 38,000 38,000 - 50,000 50,000 - 65,000 65,000 +

Prime Brokerage 32,000 - 40,000 40,000 - 55,000 55,000 - 70,000 70,000 +

Stock Lending 30,000 - 38,000 38,000 - 50,000 50,000 - 70,000 70,000 +

Loans Closing 32,000 - 40,000 40,000 - 55,000 55,000 - 70,000 70,000 +

Loans Administration 30,000 - 38,000 38,000 - 50,000 50,000 - 65,000 65,000 +

Reconciliations/Control 30,000 - 38,000 38,000 - 50,000 50,000 - 65,000 65,000 +

Payments 25,000 - 30,000 30,000 - 35,000 35,000 - 45,000 45,000 +

Static Data 25,000 - 32,000 32,000 - 40,000 40,000 - 55,000 55,000 +

20 Banking & Financial Services | Salary Guide 2011


2011

salary

guide

OPERATIONS

Contract/Temporary - Hourly rate

Minimum (£) Average (£) Maximum (£)

Investment banking

Trade support 20 25 30

Documentation Drafting 25 30 35

Documentation Confirmations 18 24 28

Collateral Management 20 25 30

Valuations 18 24 30

Corporate Actions 18 24 28

Dividends/Income Processing 18 24 28

Project Managers 300 (per day) 550 (per day) 1000 (per day)

Business Analysts 280 (per day) 450 (per day) 750 (per day)

Settlements 18 24 28

Client Services 18 24 28

Prime Brokerage 20 25 30

Stock Lending 18 24 28

Loans Closing 20 25 28

Loans Administration 18 24 26

Reconciliations/Control 18 24 28

Payments 16 18 22

Static Data 16 20 25

London

Banking & Financial Services | Salary Guide 2011 21


2011

salary

guide

OPERATIONS

Permanent

Fund and Investment Management

0-2 YEARS'

EXPERIENCE (£)

2-4 YEARS'

EXPERIENCE (£)

4-8 YEARS'

EXPERIENCE (£)

8+ YEARS'

EXPERIENCE (£)

Fund Managers Assistant 25,000 - 35,000 35,000 - 50,000 50,000 - 70,000 75,000 +

Fund Administration 20,000 - 30,000 30,000 - 40,000 40,000 - 55,000 55,000 +

Performance Analyst 25,000 - 35,000 35,000 - 50,000 50,000 - 70,000 75,000 +

Pricing/Valuations 20,000 - 30,000 30,000 - 40,000 40,000 - 55,000 55,000 +

Client Reporting 25,000 - 30,000 30,000 - 35,000 40,000 - 50,000 50,000 +

Contract/Temporary - Hourly rate

Fund and Investment Management

0-2 YEARS'

EXPERIENCE (£)

2-4 YEARS'

EXPERIENCE (£)

4-8 YEARS'

EXPERIENCE (£)

Fund Managers Assistant 20 25 32

Fund Administration 16 22 28

Performance Analyst 18 24 30

Pricing/Valuations 16 22 28

Client Reporting 16 22 28

22 Banking & Financial Services | Salary Guide 2011


2011

salary

guide

RISK

In H1 2010 demand for risk staff soared,

particularly in Q2. In Q1, the market was

still uncertain as risk candidates remained

cautious and waited to find out bonus

numbers from the previous year. High

demand for candidates continued through

the year, across the board as banking

employers sought risk candidates as a

consequence of regulatory changes/

requirements and an internal desire to

manage risk more efficiently.

There was an unusually high demand

from organisations in Q4 2010. Although

recruitment processes were typically slow

for that time of year, meaning that the

number of placements made were not

necessarily representative of the high

number of mandates recruiters were

working on. However, the knock on effect

is that 2011 started off and continues to be

extremely busy. Risk recruiters have been

inundated with mandates across both the

banking sector and on the buy side, but top

candidates are still in short supply.

With regards to skill sets sought by

employers, there has been demand at all

levels but mainly at associate/ AVP/VP

level. The following areas have been and are

currently in demand:

| | Multi lingual credit analysts

| | Regulatory risk specialists

| | Business analysts/project managers/

change the bank (CTB) functions

| | Stress testers/scenario analysts

| | Market risk analysts – across each asset

class – including the CDO/ABS space

| | Liquidity risk specialists

| | Interest rate risk modellers

| | Quantitative candidates for areas such

as model validation, risk modelling and

exposure management

| | Operational risk analysts/managers with

specific product experience in areas

such as commodities, credit and interest

rates

From what we have seen so far, there

will be a reasonably high volume of hiring

throughout this year. Naturally there will be

quieter periods as there are always seasonal

slow downs in the summer and at the back

end of Q4. Financial services companies are

still trying to improve their infrastructure and

are still facing pressures from regulators,

we do not foresee this changing over the

next 12 months. Therefore, it is expected

that financial services institutions will

continue to hire staff across many areas

of risk. Particularly stress testers, risk

change/projects candidates, regulatory

risk candidates – basel, economic capital,

ICAAP specialists, liquidity risk managers,

operational risk managers and “model

validators”.

Naturally, over the course of 2009 and 2010

the media, public and government have

shown considerable interest in the financial

services sector and the way employees

are compensated. Public anger about

“banking bonuses” has played a key role in

changing the way banks are structuring their

compensation packages for their employees.

London

Banking & Financial Services | Salary Guide 2011 23


2011

salary

guide

It remains unclear until bonuses are paid in

2011 as to how much this has changed the

overall compensation level for employees in

risk management departments. It seems that

in the main, compensation levels are either

better than last year, or very similar. There

have been a few banks that have paid little

or no bonuses, which has had an impact

on the loyalty of their staff. However, it is

fair to say that we have not seen the typical

candidate merry-go-round that we normally

see at this time of year. Many candidates are

still uncertain regarding their market rate and

prefer to remain where they are unless the

perfect role comes along.

Banks have changed their compensation

structures for risk management employees in

the following ways:

| | Some have improved their employee’s

base salaries without comment on

whether the bonus level will change. It

is thought that this is done to stave off

competition and retain staff.

| | Some have increased the guaranteed

part of the employee remuneration

package by including non

pensionable, fixed payments on top

of base salary. These are received by

the employee on a monthly basis as if

it is an increase in base salary by the

employee. It is in effect, an advance

on their annual bonus. At this stage,

it is unclear how big the bonus pool

will actually be in these instances,

and how much the overall employee

compensation level has changed.

| | Some have improved their benefits

packages and have introduced

flexible benefits that can be taken as

cash on top of base salary.

| | Other firms have maintained the

traditional base plus bonus structure,

thereby not aligning themselves with

many others in the market.

The change in compensation structures

in financial services has created a new

problem for employers looking to hire

because there is no market consensus

on how employers are paying their

employees. Those firms that have

increased the guaranteed element of

employee compensation have had an

adverse effect on candidate compensation/

salary expectations. Naturally, candidates are

favouring payment structures with a higher

guaranteed element of compensation. This

has made it very difficult for employers with

traditional structures to attract the best

talent. Guaranteed bonuses are back at

director level and above. This was expected

as the firms who have not yet changed or

will not change their pay structures, are to

remain competitive.

24 Banking & Financial Services | Salary Guide 2011


2011

salary

guide

RISK

Permanent

0-2 YEARS'

EXPERIENCE (£)

2-4 YEARS'

EXPERIENCE (£)

4-8 YEARS'

EXPERIENCE (£)

Investment banking - Market Risk, Credit Risk, Quantitative Analysis and Operational Risk

8+ YEARS'

EXPERIENCE (£)

Market Risk Management 30,000 - 45,000 45,000 - 60,000 65,000 - 100,000 95,000 +

Market Risk Reporting 30,000 - 40,000 40,000 - 50000 50000 - 90000 90,000 +

Model Validation 30,000 - 55,000 55,000 - 80,000 80,000 - 110,000 110,000+

Operational Risk 30,000 - 40,000 40,000 - 60,000 50,000 - 95,000 95,000 +

Credit Analysis 32,000 - 45,000 45,000 - 65,000 65,000 - 100,000 90,000 +

Credit Risk Reporting 30,000 - 45,000 45,000 - 55,000 55,000 - 80,000 85,000 +

London

Banking & Financial Services | Salary Guide 2011 25


2011

salary

guide

Temporary/Contract

Last year was a better year for temp

recruitment than in 2009. There has been

a lot of temp recruitment not only in the

investment banking and retail banking

sectors, but also in the hedge fund, asset

management, and insurance worlds.

With many organisations going through

periods of restructure, mergers, and various

stages of change across the sector the

need for contractors has grown. Many

hiring managers looked to the contract

market as a quick way to recruit someone

under perm headcount. This offers a low

risk solution, and allows the candidate

to prove themselves before committing

to a permanent contract. The permanent

candidate market has become very receptive

to this introduction into roles and businesses.

Although the temp market moves at a

much quicker speed than the permanent

market, hiring managers are still making very

careful decisions on who they hire into their

businesses and interviewing in a lot more

detail than previously seen. Consequently

the candidate market has become more

competitive with the better talent finding

new roles quickly. It also means that hiring

managers will wait for the best person to

come along extending the process to ensure

that they get the right skillset.

A lot of recruitment fell under projects and

the need for business analysts, project

managers and programme managers from

a variety of skillsets grew from 2009. There

was quite a bit of recruitment within the

retail banking space across several finance

disciplines. Finance business partnering,

management information, system design

and development, financial accounting

and control (IAS 32 & 39), liquidity and

regulatory roles are areas where contracting

recruitment has been active over the last

year. With a decline of better candidates in

the market, we have seen an increase in

market rates across all these disciplines.

However many candidates are not “money

motivated”, but have a genuine interest in

developing their careers in the longer term

and are more interested in the bank and

what the role can offer.

Throughout 2011 we expect an active, but

competitive temp market. Many organisations

that have historically been active in the

London markets, have moved finance

functions to other locations in the UK or off

shored internationally. The markets outside

of London have become busier, increasing

employment opportunities. Consequently in

London there is now more competition for a

smaller volume of roles.

Looking forward to the rest of 2011, we still

expect the market to be busy. 2011 will be

the first year since 2007/8 that bonuses will

be awarded throughout the sector, which will

create candidate movement in the industry.

We expect Q2/3 to be a very busy quarter,

because of that movement, hiring managers

will look to the contract market to replace

resources. There will still be hiring managers

that want to keep recruitment low risk

with temp to perm hires. With many banks

continuously going through change, the ever

increasing need for contractors will continue.

26 Banking & Financial Services | Salary Guide 2011


2011

salary

guide

contact us

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Aberdeen

AB10 1RD

Tel: +44 (0) 1224 620 262

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Caledonian Exchange

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The Chancery

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Manchester

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Victoria Square

Birmingham

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Glasgow

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Milton Keynes

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BRISTOL

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Clifton

Bristol

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Leeds

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London

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