There is no job loss if you are in risk management, in fact, we are getting a pay raise!

Risk staff set for pay hike
Richard Partington
09 Mar 2012
Salaries awarded to staff in key risk management roles at investment banks are forecast to increase at a quicker pace than for chief executives, as regulatory demands heap pressure on banks to retain top control employees, a new report published today finds.


Base pay for staff in the so-called ‘control roles’, such as risk management, legal, internal audit and compliance positions, is forecast to increase by at least 3%, according to a survey of 63 financial institutions worldwide by Mercer.

By contrast, base pay for chief executives is forecast to be frozen in 2012, according to the survey.

US and European regulators have ramped up pressure on financial institutions to ensure risk procedures are adequately adhered to in order to prevent a repeat of the financial crisis.

Vicki Elliott, senior partner and financial services industry leader at Mercer, said: “Financial services organisations are responding to significant changes in regulatory requirements concerning compensation policies, incentive plan designs and their governance. In Emea and the Americas they face keen public scrutiny.”

Chris Forbes, chief executive at PhD Search & Selection who specialises in risk control recruitment, said he had seen new hires attract a salary premium of about 10-15% when switching employer. He said: “There’s so much risk and regulation in the market right now and there’s not enough talent, so it’s a very competitive environment.”

He added: “Counterparty risk analysis and the stress testing of models and products has come more to the fore. What you’ve seen is a lot of people touch around the edges of it but you haven’t got many true experts.”

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