gts salary survey2011

7/27/2019 Gts Salary Survey2011

1/11

A joint venture between Exporta GTR and Healy Hunt

Trade Finance

Salary Survey Report

2011


2/11

TRADE FINANCE SALARY SURVEY REPORT 2011 1GTSSEARCH.COM

THE FUTURE OF TRADE FINANCE:

The Results.

The second annual GTS salary survey has revealed that the

profle o global trade and transaction services (GTTS) within

fnancial institutions is growing. However, under-investment in

the sector over the last decade has resulted in an acute shortage

o candidates at the more junior end o the talent pipeline.

Consequently, one o the major challenges acing GTTS is

training, developing and attracting more talent to the sector.

The GTS Survey gathered eedback rom the major trade nance

hubs and asked respondents about their salaries, bonuses, promotion

prospects, the status o GTTS in their organisations and their career

motivations and aspirations. The survey examined compensationtrends and bonus structures and also revealed interesting insights into

the mood and uture o the sector.

Despite the regulatory and nancial pressures acing GTTS, the sector

is clearly going through a renaissance and rightly so. In times when

bankers ace an image crisis GTTS is perceived as the acceptable

ace o banking as it provides vital liquidity to mature and emerging

economies, nances the production and distribution o real products

and lubricates the engine o global trade.

We would like to thank everyone who contributed to this years

survey. We encourage your eedback and have collated some o the

comments in this report. As always, we invite you to contact us or

urther inormation or specic market advice.

This survey should be used as a guide only.

I you would like any specifc or personalised advice please contact

Sarah Hutton

T: +44 (0)207 496 8975 E: [email protected]

Stephen Dodd

T: +44 (0)207 496 8979 E: [email protected]

EXPORTA GTR AND HEALY HUNT: A JOINT VENTURE

Global Trade Search (GTS), is a joint venture between Healy Hunt

and Exporta GTR, the leader in events and publishing or the trade

commodity and export nance sectors.

GTS is a specialist search practice which works across global

transaction banking in a range o product areas including structured

trade and commodity nance, supply chain nance, cash management,

political risk insurance and legal services.

GTS and Healy Hunt are part o the Corbel Group.

CONTENTS

Section 1 Market Overview 2

Section 2 Salaries 4

Section 3Bonuses

5

Section 4 The Sector Speaks 6

Section 5 Survey Conclusions 9


3/11

MarketOverview.Banks are continuing to strengthen their trade fnance

capabilities, recognising that transaction banking represents

a good source o low risk ee-driven business. Against this

backdrop, salaries and bonuses continue to increase steadily.

The overriding theme suggests that it is business as usual in global

transaction services with global heads being set high targets or

growth. This is also refected in the perception o trade nance within

institutions with almost 50% o respondents reporting that the status

o their divisions has increased.

Those in Trade and Supply Chain nance particularly reported an

overwhelming appreciation o their contribution, refecting the steady

but solid appeal o the sector.

However, despite the sectors good prospects GTTS aces a

signicant talent pipeline shortage which could impede the sectors

growth. Over 63% o survey respondents had more than 10 years

experience indicating that signicant training and development

needs to be invested in the talent pipeline i we are to avoid spiralling

compensation packages or experienced junior hiring.

The investment banking brigade continues to look

at us commercial bankers as gloried post oce

workers, but there is at least now the recognition that

we also make some money and with maybe a lower

risk o losing it.

Buoyant recruitment market in London and Asia across trade

sales and operations.

Compensation is competitive and growing at a steady rate.

People working in Credit Insurance were most likely to have

had a pay rise and people in origination roles enjoyed the

highest increases.

The increase in total compensation is due to rebounding bonus

levels rather than an increase in base salaries. This year saw no

base salary adjustments or lower bonus structures.

There is no major trend towards bonuses being paid in stock or

deerred instruments.

There is an acute shortage o younger talent in the sector and

those with less than ten years market experience are signicantly

under-represented.

GTTS is no longer seen as the poor relation to investment banking,

but the sector needs to work hard to improve its appeal to theyounger generation.

KEY MARKET TRENDS

TOTAL COMPENSATION ON THE RISE

The good news is that 59% o survey participants reported

an increase in their total compensation package.

Just over 13% reported a decrease in total compensation which may

suggest that nancial institutions are increasingly using bonus payments

as a way o perormance managing their sta.

In terms o base salaries, around three-quarters reported a rise o less

than 10% or no change at all, suggesting most o the increases in total

compensation came rom bonuses.

The most likely area to see a salary increase was structured trade and

commodity nance with one in three reporting a 10-30% uplit.

Three-quarters o those in Credit Insurance had a pay increase.

It might not be as sexy say to DCM - but its certainly not

as volatile! More needs to be done to promote GTS at

universities and colleges.



4/11

In which type o organisation do you currently work?

Corporate Bank 54.0%

Investment Bank 8.7%

Insurer 5.5%

Trading House 5.1%

Other 6.7%

In which business area does your role si t?

Trade and Supply

Chain Finance 37.7%

Structured Trade and

Commodity Finance 22.7%

Export Finance 15.1%

Credit Insurance and

Political Risk 7.3%

Other 17.2%

In which area o your organisation does your role t?

Origination 45.6%

Credit/Risk 14.6%

Structuring 21.3%

Middle Oce 10.3%

Back Oce 8.3%

How many years experience do you have in Global Transaction Services?

0 - 2 years 6.0%

3 - 5 years 11.9%

5 - 10 years 18.6%

10 - 15 years 19.1%

15 years plus 44.3%

e.g. Risk Management, Financial Institutions,

Project Finance, Commodity Finance

How did your total compensation (salary + bonus) or this year compare

with last year?

Higher 59.2%

No change 27.3%

Lower 13.5%



5/11

Tier 3-5yrs 5-10yrs 10-15yrs 15+yrs

Base () Bonus (%) Base () Bonus (%) Base () Bonus (%) Base () Bonus (%)

All

Median Range 50,000 - 60,000 20-30% 70,000 - 80,000 30-40% 85,000 - 95,000 40-50% 110,000 - 120,000 25-35%

Average 56,300 29% 93,230 49% 111,560 41% 116,800 42%

UK & Ireland (GBP)


Base (t) Bonus (%) Base (t) Bonus (%) Base (t) Bonus (%) Base (t) Bonus (%)

All

Median Range 60,000-70,000 10-20% 70,000-80,000 20-30% 100,000-110,000 30-40% 100,000-110,000 20-30%

Average 61,740 20% 84,160 34% 100,320 47% 120,710 36%

Europe (EUR)


Base ($) Bonus (%) Base ($) Bonus (%) Base ($) Bonus (%) Base ($) Bonus (%)

All

Median Range 90,000-100,000 15-25% 115,000-125,000 10-20% 120,000-130,000 20-30% 140,000-150,000 20-30%

Average 121,600 34% 115,000 26% 146,530 45% 163,220 37%

North America (USD)



All

Median Range 40,000-50,000 10-20% 50,000-60,000 10-20% 130,000-140,000 20-30% 120,000-130,000 20-30%

Average 50,000 13% 74,470 23% 126,750 47% 141,950 38%

ME & Arica (USD)



All

Median Range 80,000-90,000 25-30% 110,000-120,000 25-35% 120,000-130,000 25-35% 150,000-200,000 30-40%

Average 120,000 46% 133,570 39% 143,150 40% 179,800 39%

Asia (USD) Including China, HK, Singapore, North & S.E Asia

Note: Median Range is the middle response o all those received, while the average may be outside this r ange i there are a number o responses substantially above or below the median, such as unusually high expat or investment banking packages.

Salaries.To attract the best talent, salaries in trade fnance are looking

increasingly competitive, especially or those with 10-15

years-plus experience. However, bonuses are not necessarily

ollowing suit, with most staying well below the mega multiples

oten reported in investment banking.

The survey shows that base salary remains the largest component ototal compensation or 95% o all respondents. Even in Structured

Trade Commodity Finance origination, the most highly incentivised

sector, over 60% o respondents relied on base salary as the largest

component o their compensation.

Over the last 18 months many wholesale banks have recalibrated

their compensation structures whereby salaries were increased

to compensate or reduced bonus. This was not so widespread

across GTTS with only 1 in 4 respondents citing an increase in their

base salary to compensate or reduced bonus. This mostly aected

proessionals in structured trade and commodity nance and supply

chain nance who enjoyed uplits in salary o 10-30%. Three quarters

o respondents received no change in salary or less than 10%.



6/11

Bonuses.Last year, due to pressure to reduce the bonus culture in

banks, our survey ound that base salaries were increased to

compensate or reductions in bonuses. However, this was not

the case this year. Over three-quarters o respondents stated

that increases in salary were not to make up or lower bonuses.

Overall, bonuses are relatively stable in comparison to last yearssurvey results with slight decreases or those with 15+ years

experience (43% to 39%), but a notable increase in bonuses or

those with 10-15years experience (35% to 47%). Structured Trade

and Commodity Finance continues to show the highest bonus levels,

though Trade and Supply Chain Finance has shown the largest

increase compared to results or 2010.

The largest majority o respondents though said their most recent bonus was between 10-20% o their current base salary (a th o

respondents), just over 10% were paid between 20-30% whilst less than 4% saw a bonus o over 150% o their salary.

Bonuses by Business Area 3 - 5 yrs 5 - 10 yrs 10 - 15 yrs 15+ yrs

All Median Range 10-20% 20-30% 30-40% 30-40%

Average 21% 34% 47% 39%

Trade & Supply Chain Median Range 10-20% 20-30% 30-40% 30-40%

Average 25% 40% 49% 37%

Structured Trade and Commodity Finance Median Range 10-20% 30-40% 40-50% 40-50%

Average 30% 42% 61% 56%Credit Insurance & Political Risk Median Range 10-20% 10-20% 20-30% 20-30%

Average 15% 28% 32% 35%

Export Finance Median Range 10-20% 10-20% 20-30% 20-30%

Average 12.5% 19% 34% 35%

How was your bonus paid?

In spite o many such headlines surrounding the proposed deerral o

bonuses by major global banks, the majority o respondents (70%) to

the survey reported that their bonuses were not subject to deerrals

nor were they paid in stock.

The highest occurrences o any type o bonus deerral were reported

in the UK where one-third o respondents said they had some kind o

stock-related or deerred bonus, but most saying this only applied to

one-third or less o their overall bonus. This suggests that outside the

glare o investment banking most o those working in GTTS continue

to receive their bonuses in unrestricted cash and their employers see

no reason to change it.

What percentage o your bonus was deerred or paid in stock? Was there a deerral period on any o the stock, and i so how long?

No deerral 69.2%

Less than 1 year 2.8%

1 - 2 years 9.8%

3 years or more 12.6%

Multiple deerral/vestingperiods 5.6%

None 70.8%

One third or less 15.9%

Between one third and

two thirds 8.2%

More than two thirds2.3%

Not sure/dont know 2.7%



7/11

The SectorSpeaks.Trade Finance Centres o Excellence

There has been much talk about the shit o gravity in the fnancial world

moving ever eastward, yet the survey suggests that London is hangingon to its position as the leading centre or trade fnance expertise.

In particular, almost 50% o respondents see London as the leader

in the provision o structured trade and commodity nance (STCF),

with Geneva coming in a distant second. Even those based in North

America and Asia reportedly still look to London or the lead.

London maintained its leading role as the centre or trade & supply

chain nance (SCF), although to a lesser extent as it was more

closely ollowed by New York, Hong Kong and Singapore. Within

SCF, there seems to be a more regional ocus, with those based in

North America seeing New York as the leading hub, while those in

Asia ollowing the lead o Singapore.

Where do you perceive to be the centre o excellence or Structured Trade

and Commodity Finance?

Paris 1.7%

Hong Kong 6.2%

Other 7.5%

Singapore 7.7%

New York 11.8%

Geneva 16.8%

London 48.4%

Where do you perceive to be the centre o excellence or Trade & Supply

Chain Finance?

Paris 1.3%

Other 7.0%

Geneva 7.2%

Singapore 11%

Hong Kong 13.8%

New York 18.1%

London 41.6%

What seems to be essential is being able to promote

GTTS to prospective graduates, as other areas o

banking continue to be more attractive. It is still not

perceived as prestigious as working in the investmentpart o the bank.

Our salary increases were negligible and did little to

cover infation & cost price increases.



8/11

Do you have the perception that Global Transaction Services has become a more

attractive career option or graduates entering the nancial services industry?

Yes 61.2%

No 38.8%

In which o the 3 below areas do you perceive there to be the greatest career

growth opportunity?

Structured Trade &

Commodity Finance 47.4%

Export Credit Agency

Backed Financing 11.2%

Trade & Supply Chain

Financing 41.4%

The Future o Trade Finance Fresh Blood

Given that the largest proportion o survey participants (44.3%) had atleast 15 years experience in the industry, there is a need to fgure outwhere the next generation o talent is coming rom.

One o the most interesting things to come out o the survey was theconfrmation, that GTTS is acing a talent pipeline shortage. O therespondents, almost 65% had more than 10 years experience, whilethose with less were signifcantly under represented suggesting that the

sector has not sufciently invested in its emerging talent (see page 4).

When asked whether working in trade fnance has become a moreattractive career option or graduates entering the fnancial servicesindustry; a resounding 60% said yes. The most encouragement camerom Arica, while the UK recorded the least. In terms o the mostattractive business area to join, STCF and SCF led the way, while only10% o respondents recommended joining the Export Credit space,including only 30% o those who work in this area.

Last years survey highlighted the lack o university education held bythose within the sector. Many trade proessionals started their careersin back ofce unctions getting a solid grounding in documentation and

the mechanics o trade beore migrating to the ront ofce to perormorigination and structuring roles. However, this is not the usual careertrajectory or a graduate trainee who is typically ast-tracked to the rontofce ater a number o brie rotations in credit, operations and support.

This leaves the sector with a conundrum. How do you lure reshgraduate talent into GTTS whilst still providing a middle-ofceapprenticeship model? In addition, how do you oster a sales mentality inthe middle ofce to capitalise on those with the right experience?

Part o the talent shortage that the sector is acing is due to poor PR.Investment banking has always been perceived as more exciting thanglobal transaction services which is why the majority o graduates gointo it. However, when you look at the technical and personal attributesrequired or a successul career in GTTS, the sector looks like achallenging and worthwhile option.

Despite the increased profle o trade fnance, and the act it is notthreatened with the same level o job cuts as witnessed in investmentbanking, it seems that there is still a air amount o work to do to makethe industry more attractive to newcomers.

Its a challenge to get a start in an international-related

career. Everyone I work with has more than 30 years o

international banking experience. Its like a club thats

hard to get admitted into.



9/11

Values, Motivations and Aspirations.

We asked survey respondents what they valued most about their currentrole and what would motivate them to move. With respect to theircurrent role the top 3 values by a long way were work/lie balance,team atmosphere and role responsibility. Other actors such as totalcompensation potential, career progression and skills development weresignifcantly less valued.

However, given that increased compensation potential and careerprogression were cited overwhelmingly as the main motivation orproessionals wanting to change jobs we conclude that the talentpipeline is rustrated by the current fnancial status and careeropportunities within the GTTS sector.

O the ollowing, do you value most in your current role?

Answer Options Response Percent Rank

Work / lie balance 57.1% 1

Team atmosphere (colleagues) 43.3% 2

Role responsibility 42.7% 3

Base salary 32.9% 4

Employer reputation 21.6% 5

Skills development 20.6% 6

Corporate title / career progression 18.7% 7 =

Bonus potential 18.7% 7 =

Status o GTTS within the organisation 9.6% 8

Figures will not add up to 100% as respondents were restricted to up to three choices only

I you were to move roles, what would motivate you to do so?

Answer Options Response Percent Rank

Increased compensation potential 71.6% 1

Corporate title / career progression 38.6% 2

Work / lie balance 37.2% 3

Responsibility 29.7% 4

Skills development 24.4% 5

Employer reputation 22.3% 6

Status o GTTS within the organisation 22.1% 7

Team atmosphere (colleagues) 18.5% 8

Figures will not add up to 100% as respondents were restricted to up to three choices only

We havent seen a change in salary

since 2008.

We have little bonus potential.

Our salary increases were negligible

and did little to cover infation & costprice increases.

Our salaries were increased, but

not to compensate or bonus, but to

catch up with market standard.



10/11

SurveyConclusions.Market sentiment may be all doom and gloom, but as long as

there is global trade there will be a role or GTTS. Whilst the

hiring trend is stable, almost 60% o respondents receivedlarger total compensation this year than last, and mostly

through increased bonuses, so the wheels most certainly

continue to turn.

The challenge or GTTS is how to bring new blood into the sector.With the majority o respondents having been in the industry overfteen years, much needs to be done to encourage resh talent, andprovide the right mix o compensation to keep it, even ater investmentbanking recovers.

Still not perceived as prestigious as working in the

investment part o the bank, but now receiving a higher

general prole in the nancial markets.

OVER TO YOU

Has the technical knowledge o trade nance in

the market been eroded during recent years?

You might ask people when they last got promoted and when / i they

next expect to get promoted - youll probably nd that promotion is

woeully slow in this industry unless you jump ship to achieve it.

As the job markets around the world contract, salaries become less o

a central actor; individuals become more ocused on keeping their jobs.

It would be interesting to see how the economic downturn is aecting

people and what their experiences are with internal HR, outplacementagencies and recruitment rms in their quest to nd a new job, should

those out o work be thinking o doing what they were doing beore or

seeking a complete career change?

I would say that a combination o aspects such as base salary, bonus

potential and benets based on results and also career oportunities,

responsibilities and work / lie balance, will continue to play a very

important role in the industry particularly in the area o international and

structured trade related transactions.

The survey should include questions on whether the respondent is a

local hire or expatriate and whether the respondent would considerrelocation in order to take up a new job opportunity.

Feedback rom survey respondents has been overwhelming. To the right

are some o the comments and suggestions that we look orward to

taking on board or the 2012 survey.

Over to you.

Next time ask people i they had changed jobs in the last

12 months and i so by what percentage did their salaryincrease and i their bonus was guaranteed.



11/11

A joint venture between Exporta GTR and Healy Hunt.

Our depth o expertise within GTS means that we have successully completed a range o search assignmentsrom senior associates through to team heads covering origination and structuring through to syndication, credit

and risk and portolio management. We have a patient and enduring approach to all mandates with a highlytargeted search mentality. It is an approach that has earned us many long standing partnerships with our cl ients.

gts salary survey2011

Documents