salary guide 2018 · 2018-08-24 · overview 5 overview looking back at last year’s salary guide...
TRANSCRIPT
SALARY GUIDE 2018
BANKING SALARY & BONUS GUIDE - 2018
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MESSAGE FROM CEO
GUY HAYWARDCEO – GOODMAN MASSON
WHAT IF EVERY DAY WE WOKE EXCITED
ABOUT GOING TO WORK?
WHAT WOULD BE THE IMPACT ON BUSINESSES’ COMPETITIVENESS IF WE WERE
ENGAGED IN OUR JOBS?
WHAT WOULD THE IMPACT BE ON OUR PERFORMANCE LEVELS IF OUR
EMPLOYERS LOOKED AFTER US?
I remain fascinated with the modern workplace.
There is more to life than work®, and I believe this whole heartedly. Yet we spend
so much time in the office or wrapped up in our thoughts about work, that our
careers and personal lives have become tangled over time.
Yet the past year, more than any other, I have seen businesses starting to
understand this and pay greater attention to how they look after their people.
I no longer just spend time with organisations talking to them about the challenges
associated with finding talent. We also talk about a genuine desire to build unique
working environments that will help them keep the
right people.
And it is those businesses that have made a commitment to modernising their
workplace that will be rewarded by employing the very best…they are out there for
you.
Of course, if you do seek new opportunities you will consider whether you are well
and correctly rewarded but combine that with how serious the company you are
talking to thinks about you and your working experience.
Influenced by the 900 finance and technology professionals who register with us
every week I hope
this Salary Guide supports you in your decision making.
Enjoy a fabulous 2018.
My warm regards,
Guy
Remember. Work is always going to be a central part of our lives. On average
we spend 90,000 hours at work during a lifetime…so it needs to be a place that
challenges, engages, inspires and makes us happy. When it isn’t such
a place we actively seek it elsewhere.
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Overview
CONTENTS
Banking Sectors Bonus Guide
Finance & Accounting
Banking Internal Audit
Banking Operations
Compliance & Financial
Crime
Cyber Security
Front Office
Product Control & Valuations
Change Management
Risk & Quantitative Analytics
Tax
Introduction
Investment Banking
Retail & Wholesale Banking
Buyside
Other Financial Services
Conclusions
Overview
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goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
Based in London and Düsseldorf; we hold annual revenues exceeding £42 million. This includes Qualified & Part-Qualified / Transactional Finance, Actuarial & Investment Management, Audit, Banking Operations, Compliance & Financial Crime, Front Office, Information & Cyber Security, Product Control & Valuations, Projects, Change & Transformation, Risk & Regulation, Tax and Treasury.
Goodman Masson is a preferred supplier to over 320 companies across the UK and Ireland, including 73of the FTSE 100 corporations.
Building an environment for our employees to enjoy and progress remains central to everything we do. We call this ‘The Experience®’ and in January 2014 the UK Intellectual Property Office recognised ‘The Experience®’ as a registered trademark... formal recognition of the uniqueness of our employee engagement philosophy.
WE ARE DELIGHTED WITH OUR RECENT AWARDS:• ‘The Best Recruitment Company to Work For’ - Recruitment International UK: 2016• ‘The Best Recruitment Company to Work For’ - Recruiter Investing in Talent Awards: 2016• ‘Best Workplace Environment’ - Recruiter Investing in Talent Awards : 2016• Ranked No. 6 - LinkedIn’s Most Socially Engaged Staffing Agencies : 2016• Ranked No.1. Company in the UK for Work/Life Balance - Glassdoor: 2016• ‘Most Engaging Benefits Proposition’ - Employee Benefits Awards: 2016• ‘Recruitment Agency of the Year’ - The Recruiter Awards: 2016• ‘Recruitment Agency of the Year’ - The Recruiter Awards: 2016• ‘The Best Recruitment Company to Work’ - Recruitment International UK: 2015• ‘Most Effective Pay & Benefits Strategy’ - Recruiter: Investing in Talent: 2015• ‘Most Innovative Benefit’ - Recruiter: Investing in Talent: 2015• ‘Most Effective Team Motivation Event’ - Recruiter: Investing in Talent: 2015• Winner of ‘Best Workplaces - Medium Category’ - Great Place to Work: 2015• ‘Delivering Excellence in Wellbeing’ - Great Place to Work: 2015
ABOUT GOODMAN MASSON
BANKING SECTORS
BONUS GUIDE
OVERVIEW
WITH A TEAM OF OVER 130, GOODMAN MASSON IS THE LARGEST FINANCIAL RECRUITMENT BUSINESS IN LONDON AND HAS BEEN RECRUITING PROFESSIONALLY QUALIFIED ACCOUNTANTS AND OTHER FINANCE PROFESSIONALS FOROVER 20 YEARS.
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BANKING SALARY & BONUS GUIDE - 2018
goodmanmasson.com T: +44(0)20 7336 7711 F: +44(0)20 7336 7722 E: [email protected]
OVERVIEW
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OVERVIEWLOOKING BACK AT LAST YEAR’S SALARY GUIDE WE CONCLUDED THAT WHILST THERE REMAINED MANY UNCERTAINTIES IN THE BANKING AND FINANCIAL MARKETS, AS THE YEAR CONCLUDED, WE WERE CAUTIOUSLY OPTIMISTIC FOR 2017 AND BEYOND.
As Brexit negotiations continue, the year has seen much debate back and forth
on possible outcomes and the overall picture remains very unclear but we have
seen the agreement on a transitional period, which has supplied some stability
in the medium term – how this feels long term will be influenced by the final deal
but it has allowed many firms to scale back and slow their plans to relocate jobs
to new European hubs.
In fact, research by the FT in late 2017, saw the number of likely jobs being
relocated at a figure below 5000, which given the initial fears of hundreds of
thousands, is a manageable position. This may change but this stability has seen
hiring and demand surge during 2017 and so far 2018 has been even busier.
This positivity has been somewhat countered by another recent report from
early 2018, with the Asset management industry specifically suffering from
Brexit woes. Hiring levels in this industry have fallen by 50%, according to
reports, with Luxemburg and Paris both seeing a strong increase in demand.
Whilst currently, this negativity in the UK seems limited to asset management it
does show that Brexit concerns do continue to have an impact, although this is
balanced by the surging demand in Banking hiring.
The Wall Street firms are in the best shape for a generation and whilst the
Europeans are also operating in more productive markets, it’s really the US firms
that have flown forward at a great rate.
The Trump effect, whilst feared initially, has actually been good for Financial
services with the effective deregulation of the US firms combined with Tax
breaks seeing their stock prices rocket.
We have also seen global M&A levels over $3 Trillion for the 4th successive year,
with markets remaining strong and company valuations remaining high. Trump
has overseen the highest levels of M&A activity of any 1st year US president in
modern times.
In Europe M&A activity in 2017 was up 78% and interestingly the UK remained
the most attractive choice for inbound investment in the EU, despite Brexit.
That said, UK GDP growth is the lowest of the G7, so there may be clouds on the
horizon. In 2017 and 2018 to date, however, the conditions have driven hiring
and profitability across the financial services landscape in London and beyond.
Our own figures on vacancy flows really reinforce the overall positive view, with
2017 seeing a 36% increase in overall job flow from our Banking and Financial
services clients, when compared to 2016 flows, and even more positivity so far
in 2018; at the start of Q2 we have seen over 50% of the vacancy flow, for all of
2017, already come into the business.
As mentioned, 2018 has begun with some of the highest levels of hiring demand
we have seen before the Credit crunch and at the time of writing this, demand
does not seem to be abating, which we hope will continue to have an uplifting
impact on remuneration and variable compensation, as well as market activity
through the remainder of 2018 and beyond.
Richard Hoar
Banking Director
OVERVIEW
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
BANKING SECTORS• FINANCE & ACCOUNTING• BANKING INTERNAL AUDIT• BANKING OPERATIONS• COMPLIANCE & FINANCIAL CRIME• CYBER SECURITY• FRONT OFFICE• PRODUCT CONTROL & VALUATIONS• CHANGE MANAGEMENT• RISK & QUANTITATIVE ANALYTICS• TAX
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BANKING SECTORS
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FINANCE & ACCOUNTING2017 WAS A BUSY YEAR FOR RECRUITMENT WITHIN THE FINANCE AND ACCOUNTING SECTOR WITHIN BANKING AND FINANCIAL SERVICES.
We saw very steady growth across all three core markets that we operate
within (Banking, Private Equity and Investment Management), and recorded
our strongest ever year. This is reflected in the fact that we have started to see
salary inflation at all levels across the market.
Within our Banking clients, we saw a high level of recruitment across specialist
areas and recorded a far higher number of positions at the Senior VP level.
With regards to the Newly-Qualified market and whilst Big 4 Banking and
Capital Markets candidates remain a preference (especially within entry level
Product Control), clients are happier to hire from smaller practice firms where
candidates can be more rounded, with regards to experience. At the newly-
qualified level within banks, £55,000 is now a little on the lower side, with the
expectation being for candidates securing salaries of £57,000+. Outside of
the Newly-Qualified market, areas in particular demand within core finance
are specialist business partnering skillsets, stress testing, and candidates with
strong process improvement/ process implementation experience. We are
seeing far fewer BAU positions being released to agencies with clients focussing
on candidates who will add value.
The elephant in the room is still Brexit and the impact that it is expected to have
on the UK Banking market. The clients we are speaking to are citing role creation
within the EU27 at this stage (for which we are being engaged by clients across
Europe and at up to Director level), rather than job relocations from London
(essentially relocating P&L, rather than staff relocation). Of course, this will be
subject to revision in future, depending upon the transition and indeed ongoing
trade arrangements secured by Prime Minister May. In a few examples, clients
are hiring in London to ensure continuity of access to the UK market, in a move
being termed ‘Reverse Brexit’.
Consistent with our prediction in our 2017 Salary Survey, Private Equity was
the biggest growth market within Banking and Financial Services. Clients are
increasingly looking to hire previously seen ‘nice to haves’ rather than ‘must
have’ positions, such as Finance Business Partnering roles. With banking, bonus
levels remain under pressure so Private Equity is an area that employees are
targetting.
The larger, institutional investment management businesses have seen similar
trends. Dedicated business partnering and FP&A divisions are now the industry
standard, with successful candidates mostly switching from the banks, where
there is a greater depth of experience. Businesses that are hiring have also
found a willing talent pool, lured by the opportunity of larger bonuses.
There has also been some negative pressures on hiring in Investment
Management, within London, mostly focused on offshoring roles and cost
rationalisation, however, this was outweighed by the overall strength of the
market. New hires in finance for Investment Management were significantly up
year-on-year.
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BANKING SECTORS
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FINANCIAL SERVICES - ACCOUNTING & FINANCE PERMANENT
Investment Banking
Management Reporting £25,000 - £35,000 £30,000 - £40,000 £36,000 - £48,000 £50,000 - £60,000 £55,000 - £65,000 £65,000 - £80,000 £75,000 - £100,000 £100,000+
Group, Financial andStatutory Accounting
£25,000 - £35,000 £30,000 - £40,000 £36,000 - £48,000 £50,000 - £60,000 £55,000 - £65,000 £65,000 - £80,000 £75,000 - £100,000 £100,000+
Regulatory Accounting £25,000 - £35,000 £30,000 - £40,000 £36,000 - £48,000 £50,000 - £60,000 £55,000 - £65,000 £65,000 - £80,000 £75,000 - £100,000 £100,000+
Financial Analysis £25,000 - £35,000 £30,000 - £40,000 £36,000 - £48,000 £50,000 - £60,000 £55,000 - £65,000 £65,000 - £80,000 £75,000 - £100,000 £100,000+
Product Control £25,000 - £35,000 £30,000 - £40,000 £36,000 - £48,000 £50,000 - £60,000 £55,000 - £65,000 £65,000 - £80,000 £75,000 - £100,000 £100,000+
FP&A / Business Partnering
£25,000 - £35,000 £30,000 - £40,000 £36,000 - £48,000 £50,000 - £60,000 £55,000 - £65,000 £65,000 - £80,000 £75,000 - £100,000 £100,000+
Financial Controller / Financial Director
- - - - - - £75,000 - £100,000 £100,000+
FoundationACCA/CIMA
IntermediateACCA/CIMA
Finalist ACCA/CIMA
NQ 1 - 2 yrs 2 - 5 yrs 5 - 8 yrs 8 yrs+ Role
Banking(Other)
Management Reporting £25,000 - £35,000 £30,000 - £38,000 £40,000 - £48,000 £50,000 - £55,000 £55,000 - £65,000 £55,000 - £75,000 £75,000 - £90,000 £90,000+
Group, Financial andStatutory Accounting
£25,000 - £35,000 £30,000 - £38,000 £40,000 - £48,000 £50,000 - £55,000 £55,000 - £65,000 £55,000 - £75,000 £75,000 - £90,000 £90,000+
Regulatory Accounting £25,000 - £35,000 £30,000 - £38,000 £40,000 - £48,000 £50,000 - £55,000 £55,000 - £65,000 £55,000 - £75,000 £75,000 - £90,000 £90,000+
Financial Analysis £25,000 - £35,000 £30,000 - £38,000 £40,000 - £48,000 £50,000 - £55,000 £55,000 - £65,000 £55,000 - £75,000 £75,000 - £90,000 £90,000+
FP&A / Business Partnering
£25,000 - £35,000 £30,000 - £40,000 £36,000 - £48,000 £50,000 - £60,000 £55,000 - £65,000 £65,000 - £75,000 £75,000 - £100,000 £100,000+
Financial Controller / Financial Director
- - - - - - £75,000 - £100,000 £100,000+
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BANKING SECTORS
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Investment Management & Hedge Funds
Management Reporting £25,000 - £35,000 £32,000 - £38,000 £38,000 - £50,000 £48,000 - £55,000 £55,000 - £65,000 £60,000 - £75,000 £70,000 - £90,000 £85,000+
Group, Financial andStatutory Accounting
£25,000 - £35,000 £32,000 - £38,000 £38,000 - £50,000 £48,000 - £55,000 £55,000 - £65,000 £60,000 - £75,000 £70,000 - £90,000 £85,000+
Regulatory Accounting £28,000 - £35,000 £34,000 - £42,000 £40,000 - £50,000 £48,000 - £55,000 £55,000 - £65,000 £60,000 - £75,000 £70,000 - £90,000 £90,000+
Financial Analysis £25,000 - £35,000 £32,000 - £38,000 £38,000 - £50,000 £48,000 - £55,000 £55,000 - £65,000 £60,000 - £75,000 £70,000 - £90,000 £90,000+
FP&A / Business Partnering
£25,000 - £35,000 £32,000 - £38,000 £38,000 - £50,000 £50,000 - £57,000 £55,000 - £65,000 £60,000 - £75,000 £70,000 - £90,000 £90,000+
Fund Accounting £25,000 - £35,000 £32,000 - £38,000 £38,000 - £50,000 £48,000 - £55,000 £55,000 - £65,000 £60,000 - £75,000 £75,000 - £100,000 £85,000+
Financial Controller / Financial Director
- - - - - - £75,000 - £100,000 £100,000+
FoundationACCA/CIMA
IntermediateACCA/CIMA
Finalist ACCA/CIMA
NQ 1 - 2 yrs 2 - 5 yrs 5 - 8 yrs 8 yrs+ Role
Insurance
Management Reporting £25,000 - £35,000 £30,000 - £40,000 £35,000 - £45,000 £45,000 - £55,000 £55,000 - £65,000 £60,000 - £70,000 £70,000 - £90,000 £80,000+
Group, Financial andStatutory Accounting
£25,000 - £35,000 £30,000 - £40,000 £35,000 - £45,000 £45,000 - £55,000 £55,000 - £65,000 £60,000 - £70,000 £70,000 - £90,000 £80,000+
Regulatory Accounting £25,000 - £35,000 £30,000 - £40,000 £35,000 - £45,000 £45,000 - £55,000 £55,000 - £65,000 £60,000 - £70,000 £70,000 - £90,000 £80,000+
Financial Analysis £25,000 - £35,000 £30,000 - £40,000 £35,000 - £45,000 £45,000 - £55,000 £55,000 - £65,000 £60,000 - £70,000 £70,000 - £90,000 £80,000+
FP&A / Business Partnering
£25,000 - £35,000 £32,000 - £38,000 £38,000 - £50,000 £45,000 - £55,000 £55,000 - £65,000 £60,000 - £70,000 £70,000 - £90,000 £90,000+
Financial Controller / Financial Director
- - - - - - £75,000 - £100,000 £100,000+
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...goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
BANKING SECTORS
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Accounts Payable Assistant £22,000 - £28,000 £11 - £14
AP Manager £40,000 - £55,000 £20 - £26
Accounts Receivable Assistant £22,000 - £28,000 £11 - £14
Credit Controller £24,000 - £32,000 £12 - £17
Senior Credit Controller £32,000 - £40,000 £16 - £20
Credit Manager £40,000 - £60,000 £20 - £30
Accounts Assistant £24,000 - £32,000 £12 - £16
Payroll Manager £40,000 - £55,000 £20 - £26
Graduate £24,000 - £28,000 £12 - £14
AP Supervisor £31,000 - £38,000 £15 - £18
Perm Temp (p/h) Financial Services Transactional Role
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BANKING SECTORS
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Assistant Accountant £24,000 - £28,000 £30,000 - £35,000 - £12 - £17
Assistant Management Accountant £24,000 - £30,000 £30,000 - £35,000 - £12 - £17
Assistant Financial Accountant £26,000 - £30,000 £30,000 - £35,000 - £13 - £17
Financial Accountant - £30,000 - £38,000 £40,000 - £45,000 £15 - £23
Management Accountant £25,000 - £28,000 £30,000 - £35,000 £36,000 - £45,000 £13 - £23
Finance Analyst £25,000 - £28,000 £28,000 - £35,000 £36,000 - £45,000 £13 - £23
Foundation Studier Intermediate Studier Top Level Studier Temp (p/h) Financial Services Part Qualified Role
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BANKING SECTORS
Retail Banking - Temp/Contract
Management / Financial Accountant
£200 - £250 £220 - £250 £250 - £300 £300 - £350 £400+
Management / Group Reporting
£200 - £250 £220 - £250 £250 - £300 £300 - £350 £400+
Group Accountant £200 - £250 £220 - £250 £250 - £300 £300 - £350 £400+
Fianacial Controller / Chief Accountant
£200 - £250 £220 - £250 £320 - £350 £400 - £450 £550+
Financial Director - - - £400 - £600 £500+
Finance Business Partner £200 - £250 £250 - £300 £275 - £325 £350+ £400+
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FINANCIAL SERVICES - ACCOUNTING & FINANCE TEMPORARY
Investment Banking - Temp/Contract
Management Accountant £220 - £250 £250 - £275 £275 - £325 £325+ £375+
Financial Accountant £220 - £250 £250 - £275 £275 - £325 £325+ £400+
Financial Controller £220 - £250 £250 - £275 £275 - £325 £325+ £400+
Regulatory Reporting Accountant
£250 - £270 £275 - £325 £325 - £375 £325 - £500 £500+
Regulatory Policy & Advisory
£250 - £270 £275 - £325 £325 - £375 £400+ £500+
Technical Accountant £220 - £250 £250 - £275 £325 - £375 £400+ £500+
Finance Business Partner £220 - £250 £250 - £300 £275 - £325 £350+ £450+
Part Qual/Non Qual (p/d) Newly Qual (p/d) 1 - 2 yrs (p/d) 2-5 yrs (p/d) 5 yrs + (p/d) Role
Assistant Accountant £250 - £300 £300+ £350 - £400 £400+
Not Qual: 1 - 2 yrs (p/d) Not Qual: 3 yrs+ (p/d) Qual: 1 - 2 yrs (p/d) Qual: 3 yrs+ (p/d) Role
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BANKING SECTORS
Specialist Financial Services -Temp & Contract
Management / Financial Accounting
£180 - £250 £220 - £270 £275 - £300 £300 - £375 £375+
Management / Group Reporting
£180 - £250 £220 - £270 £325 - £350 £350 - £400 £400+
Group Accountant £180 - £250 £220 - £270 £325 - £350 £350 - £400 £400+
Financial Controller / Chief Accountant
£180 - £250 £220 - £270 £325 - £350 £350 - £450 £500+
Financial Director - - - £400 - £550 £600+
Financial Business Partner
£180 - £250 - £250 - £300 £350+ £400+
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Investment Management - Temp & Contract
Fund Accountant £150 - £200 £200 - £250 £250 - £275 £275 - £300 £300 - £400 £400 - £500 £500+
Management / Financial Accounting
£150 - £200 £200 - £250 £250 - £275 £275 - £300 £300 - £400 £350 - £400 £400+
Management / Group Reporting
£150 - £200 £200 - £250 £300 - £325 £325 - £350 £350 - £400 £400 - £500 £450+
Business Partner - - £300 - £350 £350 - £400 £400 - £450 £450 - £500 £450+
Group Accountant - - £300 - £325 £325 - £350 £350 - £400 £400 - £450 £400+
Financial Controller / Senior Accountant
- - - £300 - £325 £325 - £375 £375 - £450 £400+
Financial Director - - - - - - £500+
Part Qual - Intermediate (p/d)
Part Qual - Finalist (p/d)
Newly Qual(p/d)
1 - 2 yrs(p/d)
2 - 4 yrs(p/d)
4 - 6 yrs(p/d)
6 yrs+(p/d) Role
Part Qual / Non Qual (p/d)
Newly Qual (p/d)
1 - 2 yrs(p/d)
2 - 5 yrs(p/d)
5 yrs+(p/d) Role
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BANKING SECTORS
14goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
BANKING INTERNAL AUDIT2018 STARTED WITH A BANG IN THE INTERNAL AUDIT MARKET, WITH BIG NAMES LIKE BARCLAYS, MORGAN STANLEY, AND GOLDMAN SACHS CONTINUING TO HIRE ACROSS VARIOUS DISCIPLINES.
The hot areas so far have been Risk Audit (Market, Credit and Operational Risk) and
Capital Markets knowledge. Similarly, in the past, where there haven’t been enough
Internal Auditors in this space, firms are looking for subject matter experts, to join
their teams and train them up.
Although most roles are still based in London, we are seeing more of a demand
for Internal Audit talent in Dublin, Poland and Hungary. For more specialist roles,
for example Capital Markets or Market Risk, which is proving quite a challenge to
recruitment. In addition to this, some Insurance firms have started beefing up their
Internal IA teams and relying less on co-sources.
Salaries have remained constant, except with the likes of Deutsche Bank who have
changed the remuneration structure at the AVP and VP levels. They now have
incorporated a bonus into the base so that it works out to a 96% fixed base and 4 %
group performance bonus. Bonuses, in general, have been constant and have been
steady at 10-30% (depending on performance and level). Generally, there haven’t
been any shocks from the Banks nor anyone who hasn’t paid a bonus.
2018 is going to be a busy time in Internal Audit market which will only mean further
hiring going forward.
IT AUDIT
The start to 2018 has been extremely busy continuing the trend from last year
where the IT Audit market was booming. There have been a lot more VP and above
positions on the market, in contrast to last year where most of the hiring was at the
AVP level.
The majority of hiring over the course of 2017 was carried out by the big British
banks who, were undergoing aggressive growth strategies. This seems to have now
reached an equilibrium where further hiring in these companies will be based on
attrition.
The Insurance market has also been expanding from 2017 through to early 2018,
with a lot of companies in the sector under growing scrutiny from regulators to
demonstrate a mature and robust approach to risk management.
There has been an increased focus on functions upskilling in data analytics, which
continues the trend from 2017. Companies are recognising the increased efficiency
and accuracy data analytics can provide within the audit process and are looking to
harness this. They have been two distinct approaches that companies have adopted
to achieve this; either creating new or hiring into existing Audit Analytics teams
or investing in training for current IT Auditors to upskill them in relevant analytics
techniques.
Cyber Security also continues to be an in-demand skill as companies continue to
boast their expertise in this area within the third line of defence. For the larger Audit
functions this has meant hiring into separate Cyber Security Audit teams but for
the smaller teams, this has culminated in candidates with a broad range of skills,
including a good Cyber Security understanding becoming preferred. We predict
that 2018 will be another busy year in Audit, with Brexit having a minimal impact on
firms’ hiring plans in the UK
BANKING SECTORS
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Head of Audit/Director £120,000 - £150,000
BANKING INTERNAL AUDIT
Chief Auditor/MD £150,000+
Senior Manager/SVP £90,000 - £120,000
Manager/AVP £55,000 - £75,000
Associate <£60,000
Salary Role
Associate Director/VP £75,000 - £100,000
BANKING SECTORS
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BANKING OPERATIONSIT’S BUSY, VERY BUSY! THE OPERATIONS MARKET ENJOYED A BUOYANT 2017 WITH A YEAR-ON-YEAR INCREASE IN JOBS COMING TO MARKET IN EVERY QUARTER.
BANKING OPERATIONS
Early signs in 2018 remain promising as the market continues to gather pace.
January, which traditionally can be a slow month, saw impressive new job volume
across Investment Banking, Asset Management and our Hedge Fund client base.
The resurgence in the Operations market, which kicked in following the 2016
Referendum result, was not widely expected. For so long this discipline has been
written off as a dying profession in London due to outsourcing and automation,
but it now genuinely feels that as an industry it has overcome and learnt to live with
these challenges. London is a hotbed of talent and can boast to have the strongest
Operations professionals in the world, there is liquidity in the jobs market and they
are in demand.
Front Office teams want to have support close by and so Client Services
professionals, Product SMEs and Regulatory experts have found their place. We also
feel we have seen a shift in attitude amongst our Analyst level candidate population,
who are now more likely to see a career in Operations as a rewarding and lucrative
prospect with a work-life balance that would not be possible with a Front Office
position.
So what’s kept us busy in particular?
The main driver across Investment Banking was regulation with recruitment
drives focussed on getting everything in place for MiFID II and EMIR reporting
requirements. Significant numbers of Regulatory focussed candidates were
recruited into reporting, governance, advisory, testing, change initiatives and client
services roles.
The Top-Middle Office Trade Support talent across all product areas found
opportunities plentiful. The best educated and most impressive often found exciting
moves to boutique Hedge Funds on offer but there were also numerous roles
from our tier one Banking community, with fixed income derivatives and structured
product specialists most in demand.
We are seeing more and more structured product roles come to market. This
specialism saw a drop in demand following the 2008 crash for obvious reasons, and
it is perhaps a little surprising to see so much growth in this area already. It is hard
to work out whether this due to an increasingly regulated environment, resulting
in lower risk structured product trading, or it’s just a case of the industry having a
rather short memory, as they look to out-manoeuvre and win business from their
competitors.
Salaries are on the up with increased flexibility to push on the traditional caps on
bandings. In contrast, bonuses have not been great and are usually minimal for
Analysts and AVPs with bigger payouts reserved for VP and above. As previously
mentioned, flexible working is increasingly being used to attract candidates,
especially within the UK Investment Banks.
INVESTMENT MANAGEMENT OPERATIONS
Hiring levels remained buoyant in 2017, as we witnessed a strengthened confidence
in the market. Any uncertainty around Brexit has now settled and we are seeing an
end to any of the hiring freezes instructed by larger Asset Managers.
The demand for traditional Operations professionals remains consistent from
both Asset Managers and Custodians, and we have seen continued growth within
functions such as Client Services, Onboarding, Client Reporting, Oversight and
Investment Operations. Data Management and Governance have also been a busy
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17goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
area where clients require experience in monitoring and producing data to assess
the performance of agent banks.
Professionals with regulatory experience were also in demand due to the January
deadline for MiFID II. There was a shortage of candidates in the market with
businesses offering competitive salaries in order to secure the top talent. This also
had an impact on the hiring processes, with Managers moving quicker than usual
on both the Contract and Permanent side.
The Buy-Side continued to appeal to candidates from Investment Banking seeking a
better work-life balance and more variety in their roles. This trend is more prevalent
at the junior end where candidates with technical skills including VBA and SQL
have proven attractive to Hiring Managers. There is a focus on systemisation and
a number of Investment Managers embedding large electronic operating systems
which affect the entire business, it is perceived that technically talented analyst level
candidates can adapt to the changing demands of the business.
We are excited about Investment Management Operations job flow in 2018 and are
predicting sustained growth for the year ahead. We will continue to engage with our
passive candidate base who can be confident that when the time comes for them
to consider a move that there should be good opportunities within the market.
Budgets have also been more relaxed, with Hiring Managers given more flexibility
on salary to attract the top talent in the market.
...
BANKING SECTORS
18goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
INVESTMENT BANKING OPERATIONS Anaylst AVP VP Director Temp (p/d) Role
Operations Risk and Control £45,000 - £55,000 £55,000 - £72,000 £75,000 - £110,000 £120,000+ £300 - £400
Trade Support £40,000 - £52,000 £55,000 - £70,000 £70,000 - £110,000 £115,000+ £250 - £350
ISDA Documentation Drafting £40,000 - £50,000 £55,000 - £70,000 £70,000 - £110,000 £110,000+ £250 - £350
Operations - Confirmations/Settlements £35,000 - £50,000 £50,000 - £65,000 £70,000 - £100,000 £110,000+ £200 - £300
Asset Servicing/Corporate Actions £40,000 - £55,000 £55,000 - £70,000 £70,000 - £100,000 £110,000+ £220 - £270
Loans Administration £40,000 - £50,000 £50,000 - £65,000 £70,000 - £100,000 £100,000+ £200 - £280
Loans Closing £40,000 - £50,000 £55,000 - £70,000 £80,000 - £110,000 £110,000+ £250 - £350
Business Analyst £35,000 - £55,000 £55,000 - £70,000 £80,000 - £110,000 £120,000+ £450 - £650
Project Managers £35,000 - £55,000 £55,000 - £70,000 £80,000 - £120,000 £120,000+ £500 - £700
PMO £35,000 - £55,000 £55,000 - £70,000 £75,000 - £110,000 £110,000+ £300 - £500
Transaction Reporting £45,000 - £55,000 £55,000 - £72,000 £75,000 - £120,000 £120,000+ £250 - £400
Reference Data £40,000 - £55,000 £55,000 - £70,000 £75,000 - £100,000 £120,000+ £220 - £300
KYC/AML £40,000 - £55,000 £55,000 - £75,000 £75,000 - £100,000 £120,000+ £300 - £450
Client Services £40,000 - £52,000 £55,000 - £70,000 £70,000 - £95,000 £100,000+ £200 - £300
Collateral Management £40,000 - £52,000 £55,000 - £72,000 £75,000 - £110,000 £115,000+ £250 - £350
Futures Clearing/Trade Support £40,000 - £52,000 £55,000 - £70,000 £70,000 - £95,000 £100,000+ £250 - £300
BANKING SECTORS
19goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
INVESTMENT MANAGEMENT OPERATIONS
Performance - Equities £35,000 - £45,000 £45,000 - £55,000 £70,000- £85,000 £95,000+
Performance - Fixed Income £35,000 - £50,000 £50,000 - £70,000 £72,000 - £85,000 £95,000+
RFP Writer £35,000 - £48,000 £50,000 - £62,000 £62,000 - £80,000 £90,000+
Investment Operations £28,000 - £40,000 £40,000 - £55,000 £60,000 - £75,000 £80,000+
Client Reporting £40,000 - £45,000 £45,000 - £55,000 £55,000 - £67,000 £80,000+
Client Services £30,000 - £37,000 £40,000 - £50,000 £50,000 - £60,000 £75,000+
Transitions £30,000 - £40,000 £40,000 - £50,000 £55,000 - £65,000 £75,000+
Fund Accounting/Admin £35,000 - £45,000 £45,000 - £55,000 £70,000 - £80,000 £90,000+
Investment Data £30,000 - £40,000 £45,000 - £60,000 £60,000 - £75,000 £80,000+
Transfer Agency £30,000 - £40,000 £40,000 - £50,000 £50,000 - £70,000 £70,000+
Oversight £35,000 - £45,000 £45,000 - £60,000 £70,000 - £80,000 £90,000+
Analyst Senior Analyst Manager Head Role
BANKING SECTORS
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CORPORATE BANKING OPERATIONS
Trade Finance Operations £30,000 - £35,000 £35,000 - £45,000 £50,000- £80,000 £85,000+
Loan Operations £30,000 - £40,000 £40,000 - £55,000 £55,000- £80,000 £85,000+
KTC / AML £30,000 - £40,000 £40,000 - £55,000 £55,000- £80,000 £85,000+
Treasury Operations £25,000 - £35,000 £35,000 - £45,000 £45,000 - £70,000 £70,000+
Assistant/Officer Senior Officer Manager Head Role
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COMPLIANCE & FINANCIAL CRIMEQ1 2018 HAS STARTED OFF FAIRLY SLOWLY WHEN COMPARING TO LAST YEAR.
2017 was extremely buoyant throughout the year, so we are hoping that the
current years’ role volumes will pick up to previous levels. As bonus periods are
coming into effect across the city, we are speaking with a number of clients who
are about to kick-start recruitment processes. We are expecting an influx of
roles across Compliance, but particularly Monitoring and Advisory roles.
REGIONAL RECRUITMENT
Regional recruitment remains a key part of hiring across Tier 1 Banking clients.
HSBC and Deutsche Bank have continued to build their Surveillance teams in
Edinburgh and Birmingham with lots of activity at the Associate level. In addition,
Deutsche Bank also added Compliance and Control Room Analysts to their
growing Compliance department in Birmingham.
FORECAST
The main focus for 2018 across Compliance will be Brexit Planning, SMR and
GDPR. We are already seeing roles coming through in these areas but expect
hiring to pick up a lot more in Q2 & Q3.
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Salary
Permanent Interim (p/d)
2222
COMPLIANCE & FINANCIAL CRIME Sector
Investment and Corporate Banking
AVP £45,000 - £75,000 £350 - £450
VP £75,000 - £110,000 £500 - £650
Director £100,000 - £140,000 £650 - £750
Head of Compliance/Function £150,000 - £190,000 £750 - £1,500
European Head of Compliance £150,000 - £300,000 £1,300 - £2,000
MD Compliance £250,000 - £450,000 £1,500 - £2,500
Role
Control Room
Control Room AVP £45,000 - £80,000 £450 - £500
Control Room VP £75,000 - £110,000 £500 - £700
Director of Control Room £100,000 - £180,000 £600 - £1,000
Front Office
Product Compliance VP £75,000 - £120,000 £400 - £500
Product Compliance SVP £10,000 - £140,000 £450 - £700
Product Compliance Head £130,000 - £235,000 £750 - £1,500
Product Compliance Director £140,000 - £200,000 £800 - £1,800
Product Compliance MD £180,000 - £300,000 £1,000 - £2,000
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...Salary
Permanent Interim (p/d)
Sector
Banking
AVP £40,000 - £75,000 £400 - £600
VP £75,000 - £100,000 £450 - £650
SVP £85,000 - £130,000 £550 - £750
UK Head of Compliance £120,000 - £180,000 £600 - £1,000
European Head of Compliance £135,000 - £240,000 £750 - £1,200
Global Head of Compliance £200,000 - £400,000 £800 - £2,000
Role
Asset/Wealth and Hedge Managers
AVP £50,000 - £75,000 £400 - £600
VP £70,000 - £100,000 £450 - £650
SVP £90,000 - £150,000 £550 - £750
UK Head of Compliance £110,000 - £180,000 £600 - £1,000
Global Head of Compliance £160,000 - £300,000 £750 - £2,000
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
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...Salary
Permanent Interim (p/d)
Sector
Consultancies
Assistant Manager £37,000 - £50,000 £400 - £600
Manager £50,000 - £65,000 £450 - £650
Senior Manager £65,000 - £90,000 £550 - £750
Directors £90,000 - £130,000 £600 - £1,000
Partners £140,000 - £300,000+ £750 - £2,000
Role
Consumer Finance Firms / Insurance / (Re) & C&I
Compliance Analyst £30,000 - £45,000 £400 - £600
Compliance Manager £45,000 - £75,000 £450 - £650
Senior Compliance Manager £75,000 - £95,000 £550 - £750
UK Head of Compliance £95,000 - £150,000 £600 - £1,000
Global Head of Compliance £140,000 - £180,000 £750 - £2,000
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
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Privacy Associate Data Protection £27,000 - £60,000 £300 - £450
Data Protection Officer £55,000 - £95,000 £400 - £600
National Data Protection Officer £80,000 - £120,000 £500 - £800
EMEA Data Protection Officer £100,000 - £180,000 £650 - £900
Global Data Protection Officer £135,000 - £250,000 £800 - £2,500
Financial Crime: AML Sanctions and Fraud
Financial Crime Manager £45,000 – £90,000 £400-£600
Head of Financial Crime £90,000 – £160,000 £750-£1,500
Head of Fraud £65,000 – £160,000 £500-£1,500
Head of AML £95,000 – £150,000 £750-£1,500
Head of Sanctions £120,000 – £300,000 £800-£2,000
Global Head of Financial Crime £190,000 – £420,000 £900-£2,000
Global Head of Fraud £190,000 – £220,000 £900-£1,500
Global Head of AML £180,000 – £225,000 £900-£1,500
Global Head of Sanctions £220,000 – £350,000 £1,000-£2,000
MLRO / CF11 £90,000 – £450,000 -
25
...Salary
Permanent Interim (p/d)
Sector Role
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
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CYBER SECURITY2017 SAW SOME AGGRESSIVE HIRING ACROSS THE BANKING SECTOR, ESPECIALLY WITHIN RETAIL BANKING.
Many consultancies, including the Big 4, have been focused on helping banks
build and bolster their Security teams in past years. Recently though, we have
seen a rise in banks taking back control which has led to an increase in direct
hiring activities. This has meant that consultancies are having to target other
sectors who are still housing immature security practices.
Through 2017 we saw a lot of high level, senior hires. Historically top talent has
been attracted from other financial institutions through strategic headhunting
from this area of the industry. Recently, there has been a shift in hiring from
outside of Banking, from other environments, sectors, and organisations, with
a focus on people who have more ‘modern’ working practises, such as flexi-
working and working from home options. This has allowed a fresh and broader
vision of the threat landscape which helps build on an already solid structure.
Moving forwards into 2018 this will become a more important hiring strategy,
allowing retail and investment banks to move away from their legacy systems
and keep up with the challenger banks in the future.
The Banking sector has always been at the forefront of advanced maturity in
security. This is partly due to their security budget, but also due to the forward-
thinking nature of their leaders. The sharing of threat intelligence through
communities and forums has been paramount to its success which is why other
industry sectors sometimes fall by the wayside.
As with all hiring in security, there is still a huge skills shortage which is only set
to increase in years to come. As predicted by Forbes in a report recently issued,
we will be looking at 2,000,000 more jobs in security than there will be people
to fill them, by 2020. We have recognised that part of this problem is due to
companies focusing on just a few technologies.
At present, we have not seen enough education within internal hiring teams on
complementary skills. This is where specialist recruitment comes into its own
and the ability to consult with clients on recommended solutions. However, we
are beginning to see the mindset of Hiring Managers changing. Companies are
beginning to look outside the box and also up-skill employees internally through
higher levels of employee training and development.
GDPR has been the main talking point across Information Security throughout
2017. The EU GDPR policies will still be fully utilised (with some tweaks) by the
UK in May even with Brexit pushing on. This will mean potential fines of up to 4%
of annual global turnover for data breaches if the appropriate steps have not
been taken to protect the company’s assets.
This has led to a huge reshuffle of Information Security teams. Moving existing
teams on to GDPR projects with ‘business as usual’ activities being carried out at
huge expense by contractors or being outsourced to third-party consultancies.
Strategically, we believe this focus on information security and risk management
will continue past the May deadline, throughout 2018 putting more pressure on
hiring the appropriate people for these roles.
We have seen the mentality of hiring within the Banking sector changing due
to this. Whether forced or strategic, there has been less focus on University
degrees or, as mentioned previously, a focus on people with past banking
experience with the realisation that experience from different walks of life will
add the most value to the security posture of the company.
Moving into 2018, the biggest focus for Banking and any organisation will be
staff retention. More and more companies are focusing on building an award-
winning benefits package and working in a more agile environment, allowing
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
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27
their employees a much better work-life balance. Any company not focusing on
this as being a high priority will inevitably lose employees to these organisations
and find it impossible to recruit top talent into the future.
Ask us about The Experience® to help build the best employee retention out
there.
BANKING SECTORSBANKING SECTORS
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goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
IAM Business Analyst - £300 - £450
IAM Consultant £45,000 - £55,000 -
IAM Developer £50,000 - £60,000 -
IAM Manager £60,000 - £75,000 -
IAM Senior Manager £65,000 - £80,000 -
IAM Director / Head of IAM £100,000+ -
IAM Solutions Architect £75,000 - £90,000 -
28
CYBER SECURITY - IDENTITY ACCESS MANAGEMENTPerm Temp (p/d) Role
IAM Technical BA - £400 - £600 •••
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
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BANKING SECTORSBANKING SECTORS
...Perm Temp (p/d)
IAM Project Manager - £550 - £750
IAM Architect - £700 - £800
Role
IAM Programme Manager - £700 - £1,000
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
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CYBER SECURITY - INFORMATION RISKPerm Temp (p/d)
Information Risk Analyst £45,000 - £55,000 £300 - £450
Information Security Analyst £45,000 - £60,000 £300 - £450
Information Security Risk Manager £75,000 - £85,000 £450 - £700
Information Security Manager £70,000 - £80,000 £450 - £650
Information Risk Manager £70,000 - £85,000 £450 - £700
Information Security Officer £80,000 - £85,000 £450 - £650
Role
Information Assurance Manager £75,000 - £85,000 £450 - £700
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
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CYBER SECURITY - APPLICATION SECURITYPerm
Application Security Analyst £45,000 - £55,000
Application Security Specialist £60,000 - £75,000
Application Security Architect £80,000 - £95,000
Role
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
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CYBER SECURITY - SECURITY OPERATION CENTREPerm Temp (p/d)
Level 1 SOC Analyst £35,000 - £50,000 £300 - £450
Level 2 SOC Analyst £45,000 - £60,000 £400 - £550
Network Security Engineer £50,000 - £75,000 £350 - £500
Malware Analyst £50,000 - £90,000 £500 - £700
SIEM Consultant £55,000 - £80,000 £400 - £650
Cyber Forensics Analyst £50,000 - £90,000 £450 - £650
Level 3 SOC Analyst £55,000 - £90,000 £550 - £700
Role
SOC Manager £80,000 - £110,000 £750 - £1,000 •••
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...Perm Temp (p/d)
Head of SOC £100,000 - £140,000 £800 - £1,200
Role
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
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CYBER SECURITY - PENETRATION TESTERSPerm
Junior Penetration Tester £35,000 - £50,000
Penetration Tester £55,000 - £65,000
Senior Penetration Tester £70,000 - £85,000
Advanced Penetration Tester £90,000+
Role
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
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CYBER SECURITY - INCIDENT RESPONSEPerm Temp (p/d)
Junior IR Consultant £35,000 - £50,000 £300 - £450
IR Consultant £45,000 - £70,000 £400 - £600
Principal IR Consultant £70,000 - £110,000 £550 - £800
Director of IR £1100,000 - £170,000 £750 - £1,200
Role
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
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CYBER SECURITY - SECURITY ARCHITECT
Security Architect £65,000 - £80,000
Senior Security Architect £80,000 - £90,000
Enterprise Security Architect £90,000+
Perm Role
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
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CYBER SECURITY - GOVERNANCE RISK & COMPLIANCEPerm
Head of Information Security £120,000
Head of Information Risk £120,000
Head of Information Assurance £130,000
Chief Information Security Officer £150,000+
Role
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BANKING SECTORS
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FRONT OFFICEIN 2016, “THE YEAR OF BREXIT AND TRUMP”, WE SAW THE CLASSIC CLICHÉ OF A GAME OF TWO HALVES. SLUGGISH GROWTH IN THE IBD LABOUR MARKET IN H1, FOLLOWED BY A SIGNIFICANT INCREASE IN H2. IN 2017 WE SAW A VERY DIFFERENT AND PERHAPS LESS OBVIOUS CLICHÉ’ OF “A GAME OF ONE SLOW QUARTER FOLLOWED BY THREE VERY GOOD ONES”. PERHAPS IT WILL BECOME A CLICHÉ OF THE FUTURE.
Despite 2017 starting in sluggish fashion new mandates still grew by 23.4% In
Q1, compared to the same period in 2016, although this is dwarfed by the 131%
increase that followed in Q2, this growth continued through H2 with Q3 seeing
an 86% leap and Q4 78%.
Perhaps more significant than the increase in new mandates, was the increase
in actual hiring. Whilst Q1 saw a zero percent change and Q2 a modest 14%
increase (in comparison to the huge jump in new mandates), Q3 saw an
incredible jump of 150% and Q4 50%. Applying a three month lag to these
statistics (to allow sufficient time for new mandates to be completed), it is clear
that not only has 2017 seen a huge increase in new mandates, there was also
a corresponding increase in the commitment to hire (demonstrated by the
increase in the execution of hires), which was lacking throughout a lot of 2016.
There is no doubt that these trends have caused a significant increase in the
competition for talent. Seemingly gone are the days where employers could
run a slow interview process and consider a wide range of suitable applicants
replaced with a real sense of urgency to seek and gain first mover advantage
over our rivals. Employers are becoming ever more concerned with retention
strategies in order to avoid this war for talent and many are trying to implement
a hiring model which is more proactive than reactive (as has been the norm).
At the time of writing new mandates in January and February 2018 alone
are already 10% up on the whole of Q1 2017, so the early signs are that this
competition for talent will only intensify.
Across Investment Banking, salaries remained largely unaffected, with basic
salaries more or less static year-on-year. There continues to be a differential
across some banks, who operate a 2.5-year Analyst programme instead of
the historical average of 3.5-years, but bonuses appear to be relatively stable,
although as always there are some exceptions.
Looking ahead 2018 has started at an incredible pace. As already mentioned the
first two months of 2018 have already seen new mandates 10% higher than the
whole of Q1 2017 and those successfully completed up 100%. Whilst the hope is
that 2018 will continue as it has begun, the backdrop of a volatile stock market,
and the ongoing Brexit negotiation suggests this optimism should remain
somewhat cautious.
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FRONT OFFICE
Top Tier Banks (and Top Tier Advisory Houses)
Analyst 1 £50,000
Analyst 2 £55,000 - £58,000
Analyst 3 £60,000 - £65,000
Associate 0 £80,000 - £85,000
Associate 1 £90,000 - £98,000
Associate 2 £100,000 - £111,000
Associate 3 £112,000 - £123,000
Vice President £140,000 - £170,000
Salary Role
2nd and 3rd Tier Banks (seniority less defined)
Analyst £45,000 - £65,000
Associate £70,000 - £100,000
Vice President £100,000 - £125,000
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
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PRODUCT CONTROL & VALUATIONS2017 WAS A TRICKY YEAR IN THE PRODUCT CONTROL AND VALUATIONS SPACE. WHILST THERE WAS A FAIRLY STEADY FLOW OF NEW VACANCIES, THE MARKET HAS NOT BEEN AS BUOYANT AS IT WAS THE PRECEDING TWO YEARS. WE SAW AN INCREASE IN DEMAND ACROSS SOME OF THE SMALLER BANKS AND HEDGE FUNDS THAT WE WORK WITH, BUT THIS WAS OFFSET BY LESS APPETITE TO HIRE WITH THE LARGER BANKS.
We have seen a real shift over the past year or so in attitudes to work and
culture. Many of our clients are focused on hiring an inclusive, diverse work
force, and as such are offering a variety of initiatives, such as working from
home, hot desking and flexible hours, to help make this happen. We are finding
more candidates putting an emphasis on work-life balance. Employers not
willing to accommodate this are falling behind in the race for talent, either
through resignations, or an inability to make the hires they want.
Last year saw a return in demand for Product Controllers with a complex
product background. The majority of the roles we were instructed on were in
this space, at AVP level. Bar one or two exceptions, banks were cautious about
making senior-level external hires, often choosing to promote internally and
backfill the more junior position. The Director level especially remains fairly
quiet, as fewer candidates are willing to move and very few Director seats are
being created. As always, candidates from a rates background, in either Product
Control, or Valuations, were in high demand.
2017 also saw a continuation of the trend of moving away from bigger bonuses
towards higher base salaries for most banks. That said, there are still a few
places out there that will offer both a pay rise and a consistently strong bonus.
Roles at these places tend to go very quickly.
2018 is looking like a much better year for Product Control and Valuations
professionals making a move. Q1 job flow is 100% up on last year, with a
promise of a number of new openings going into Q2. We expect the AVP level
to continue as our busiest, with the best candidates securing pay rises in the
20-40% region.
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PRODUCT CONTROL & VALUATIONS
Product Control & Valuations - CIMA Qualification
£30,000 - £55,000 £50,000 - £62,000 £60,000 - £85,000 £75,000 - £120,000 £110,000 - £175,000 £180,000+
AnalystAssociate
(1 - 2.5 yrs PQE)AVP
(2.5 - 5 yrs)VP
(5 - 10 yrs)Director Level MD Level Role
Product Control & Valuations - ACA Qualification
£50,000 - £60,000 £55,000 - £62,000 £62,000 - £85,000 £75,000 - £120,000 £110,000 - £175,000 £180,000+
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
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CHANGE MANAGEMENTTRENDS IN 2017 WERE VERY SIMILAR TO THE PREVIOUS TWO YEARS, NAMELY THAT REGULATORY PRESSURES AND RINGFENCING PROGRAMMES DOMINATED THE CHANGE AGENDA.
We found that Goodman Masson clients continued, on the whole, to put off any
large scale transformational pieces of work in favour of ploughing budgets into
regulatory responses. We were apprehensive that the economic environment
and uncertainty around Brexit would hamper recruitment levels but this doesn’t
appear to be the case. In fact, we saw a surprising amount of activity in the perm
market in the last 6 months of 2017.
At the start of the year, the majority of institutions already had their MiFID II
programme leadership in place, which meant the majority of recruitment on
these programmes was for SMEs, Business Analysts and Project Managers. We
saw a significant increase in day rates as the year wore on and the deadline
loomed near. Some particular skillsets within product specialism and investor
protection commanded rates up to £750-900 per day for Senior Business
Analysts which, previously, had been unseen.
Whilst the last few years have been dominated by Regulatory Change, there
is optimism that budgets will become available to be reinvested back into
the business and spent on new product development, new technologies,
infrastructure changes etc. We expect to see the continuation of regulatory
projects (MiFID II remediation, GDPR, SMRC etc.) into 2018 but nowhere near
the scale of previous years. Brexit programmes have begun in a number of
banks and Asset Managers but the build-out of these programmes is still to
be seen, something we expect towards the end of the year. With a number of
clients starting to look toward business efficiencies and customer experience,
we expect candidates with a Process Reengineering / Six Sigma qualifications to
become more and more in demand.
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BANKING SECTORS
Programme Manager £700 £850 £1,000+
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CHANGE MANAGEMENT - TEMP/CONTRACT
BA £400 £500 £600+
Low (p/d) Average (p/d) High (p/d) Role
Senior BA £550 £600 £700+
PM £550 £650 £750+
Senior PM £700 £750 £800+
Junior PMO £300 £400 £450+
Senior PMO £550 £600 £650+
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
BANKING SECTORS
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RISK & QUANTITATIVE ANALYTICS2018 HAS SEEN THE STRONGER START FOR RISK RECRUITMENT IN RECENT MEMORY
Last year we inevitably opened our Risk guide with comments around the
market uncertainty introduced by the Referendum. While we’ll leave the
controversial questions surrounding the negotiation progress made since then
by the relevant authorities to other forums, most of our clients are now pushing
ahead with their own contingency plans (often involving Dublin or Frankfurt).
Without the luxury of a clear understanding of the UK’s forthcoming position on
most fronts, many assumptions have been made through necessity, and new
types of Risk have emerged, requiring attention both within institutions and
from external regulatory bodies too. Some of our strongest Risk Managers have
relished the new challenges!
While the ongoing politics dominate headlines, 2017 marked the first year (since
their inception in 2014) that all seven of the UK’s largest lenders passed the
Bank of England’s concurrent stress test. We must, therefore, congratulate the
hard work of the Risk, Finance and Treasury functions Goodman Masson has
strengthened with some of our best candidates at several clients over the years
to achieve this. The scenario faced was more severe than the last global financial
crisis, with a 4% drop in UK GDP growth and more than a 30% drop in the
value of the pound. This should see our financial system through some of the
gloomier Brexit predictions from a capital perspective, and while there’s always
room for further improvement, it is nonetheless comforting to know that our
future resilience is no longer reliant on predictions based purely on historical
data.
Elsewhere in Risk & Regulation, there are large-scale current and upcoming
projects focusing on data, such as PSD2 & Open Banking, GDPR (just around
the corner at time of writing), and more specific to Financial Risk, continuing
implementation of new Model Risk governance initiatives, such as SR 11-7,
and wrapping up IFRS9. All of which have created new opportunities for skilled
specialists move to.
We are regularly being asked where the FRTB vacancies are, and although it is
keeping our advisory clients busy & hiring, in most cases we are seeing banks
move internal staff from various teams to cover the gargantuan workload, i.e.
those already acquainted with the relevant internal stakeholders and systems.
We have then been mandated to backfill their BAU duties.
We are however seeing growth roles such as Operational Risk and Credit
Analysis. The former makes more immediate sense – amidst ring-fencing, EU
withdrawal, growing cyber threats, and more, Operational Risk Management
needs strengthening at both large and small financial institutions. For Credit,
however, this is an area that the larger banks have mostly reduced to 30-60%
headcount over the last few years, favouring overseas cost locations for their
analysis, research, documentation and sanctioning teams. What we didn’t
foresee, was for the Asian & to a lesser extent, US banks to capitalise on the
weak pound & euro-confusion, and take a stronger foothold in the EMEA region.
The subsequent increase in Front Office activity has to lead the credit functions
to seek additional support from seasoned structured credit specialists, but
this is largely exclusive to smaller (relatively) international banking institutions
without alternative offices supporting the EMEA timezone.
While European banks are largely reducing their London footprint, the UK banks
...goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
BANKING SECTORS
45
leave us with cautious optimism, once legacy PPI and legal costs have been
taken into account (a particular well-done to RBS for posting their first profit in
a decade!). What we’re learning from bonus announcements aren’t raising any
eyebrows, although some long overdue promotions seem to be finally working
their way out, at least in more generous quantities than recent years.
In summary, the reasons above have resulted in 2018 having the strongest
start for Risk recruitment in recent memory. The more traditional regulatory,
quantitative, infrastructure and product-focused risk vacancies came in January
in greater quantity than any other in recent years, from banks, regulatory
bodies, buy-side and other financial institutions. Aside from this, we are enjoying
the trend of senior risk specialists finding new ways to employ their skills, as
the influx of challenger banks, P2P, FinTechs, and other innovative start-ups
approaching us with more exciting roles shows no sign of slowing down. Please
do contact us to learn more!
...
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BANKING SECTORS
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RISK & QUANTITATIVE ANALYTICS
Market Risk Management £35,000 - £55,000 £55,000 - £85,000 £85,000 - £130,000 £110,000 - £190,000
Analyst AVP VP Director Role
Credit Analysis £32,000 - £50,000 £50,000 - £85,000 £80,000 - £120,000 £105,000 - £180,000
Risk Reporting & Analysis £30,000 - £40,000 £40,000 - £72,000 £70,000 - £100,000 £95,000 - £160,000
Risk Modelling - Banking Book £35,000 - £55,000 £50,000 - £75,000 £70,000 - £105,000 £95,000 - £160,000
Quantitative Analysis - Trading Book £40,000 - £60,000 £60,000 - £85,000 £80,000 - £110,000 £110,000 - £190,000
Model Validation £40,000 - £60,000 £60,000 - £85,000 £75,000 - £140,000 £110,000 - £190,000
Operational Risk £35,000 - £50,000 £50,000 - £75,000 £75,000 - £120,000 £110,000 - £180,000
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
BANKING SECTORS
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TAX - FINANCIAL SERVICESDESPITE THE FACT THAT BRITAIN BEGAN TO PLAN ITS EXIT FROM THE EU, AND THE INITIAL DIP (AND PANIC) THIS CAUSED IN THE MARKET, THE TAX RECRUITMENT WORLD IN 2017 REMAINED VERY BUOYANT, WITH THE EXCEPTION OF THE HUMAN CAPITAL MARKET, OWING MOSTLY TO THE BIG 4 DOWNSIZING THEIR TEAMS.
With the digital world and tax automation having such an impact, it comes as
no surprise that the large accountancy firms were continuing to invest heavily in
this area. As such, the Tax Management Consulting and Tax Technology teams
have seen a lot of growth, with the supply not quite meeting the demand. VAT
recruitment also saw huge levels of growth in the last year, with the Big 4 firms
increasing their headcount by significant numbers to ready themselves for the
introduction of VAT in other regions, such as the UAE (early 2018). Finally, the
private client and trust markets were both on the up last year, with changes in
legislation causing more ambiguity and worry for private clients, leading to more
work for firms, in particular, large independent firms.
Aside from the aforementioned, the Financial Services, M&A/Transaction
Tax and Transfer Pricing teams also continued to provide a steady flow of
recruitment activity, although the latter not as much as we had anticipated.
In terms of the Partner market within accountancy firms, the demand for
Private Client Tax Partners (both established Partners and Directors looking
for their first Partner move) remained strong within the Top 10, Mid-Tier
and Independents. The corporate tax market had been slightly quieter, but
continuing into the New Year, there are a number of firms looking to recruit
across the Top 10 and independents. The regional market has been particularly
strong and we are increasingly seeing candidates who are London based looking
to relocate to areas like Birmingham, Southampton, and Bristol. Firms are
offering packages on par with London, and the excellent schooling and housing
are proving to be very attractive.
The legal market has been very active in the private client tax space but quiet in
corporate tax. However, areas like transfer pricing, VAT, and share schemes are
becoming increasingly active and there are signs that the corporate tax market
is picking up.
If the job flow in 2017 Q4 is anything to go by then the outlook for 2018 is
looking very positive. We are confident that the VAT, transfer pricing and
transaction tax markets will provide the lion’s share of the volume. We also
expect to see a steady flow of work coming from the financial services teams, as
they have continued to provide consistent growth year on year.
With many of the large financial institutions and FTSE 100 groups moving
their back office and operational teams into regional hubs, we expect to see a
greater volume of activity in the regional teams of the Big 4 and Top 10 firms.
As mentioned we are already seeing a number of clients on the Accountancy
and Legal side who are looking to recruit Private Client Tax and Corporate Tax
Partners in Q1 and Q2 of this year.
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BANKING SECTORS
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TAX: COMMERECE & INDUSTRY (IN-HOUSE)
Newly-Qualified Tax Specialist £43,000 - £50,000 £40,000 - £47,000
UK Tax Accountant £40,000 - £55,000 £40,000 - £50,000
UK Tax Manager £55,000 - £70,000 £50,000 - £60,000
European Tax Accountant £58,000 - £65,000 £52,000 - £59,000
European Tax Manager £65,000 - £80,000 £60,000 - £70,000
VAT Accountant £30,000 - £50,000 £30,000 - £40,000
VAT Manager £50,000 - £65,000 £45,000 - £60,000
International Tax Manager £65,000 - £110,000 £65,000 - £80,000
Transfer Pricing Analyst £35,000 - £50,000 £35,000 - £45,000
Assistant Tax Manager £50,000 - £55,000 £45,000 - £50,000
London Home Countries Role
Transfer Pricing Manager £60,000 - £130,000 £60,000 - £75,000
Head of Transfer Pricing £80,000 - £130,000 £70,000 - £90,000
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
BANKING SECTORS
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...
Group Tax Manager £65,000 - £110,000 £60,000 - £90,000
Head of Tax £90,000 - £150,000 £80,000 - £120,000
Director of Tax £120,000 - £200,000 £90,000 - £150,000
Group VAT Manager £65,000 - £90,000 £60,000 - £75,000
London Home Countries Role
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BANKING SECTORS
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Director (SVP), Business Head £110,000 - £140,000 20% - 40%
Base Salary Bonus Role
LEVEL: FS TAX - OPERATIONAL TAXES
Senior Manager (VP), Local/Functional Head
£70,000 - £115,000 15% - 35%
Manager (AVP) £48,000 - £70,000 0% - 20%
Analyst £35,000 - £52,000 0% - 20%
Associate £30,000 - £38,000 0% - 10%
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
BANKING SECTORS
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LEVEL: FS TAX - GROUP/ BANK OFFICE/ FRONT OFFICE
Managing Director/ Group Director/ Global Head
£155,000 - £325,000 30% - 50%
Base Salary Bonus Role
Executive Director/ Regional Head (SVP) £135,000 - £185,000 20% - 50%
Director/ Local Head of (VP) £110,000 - £155,000 20% - 40%
Senior Manager/ Group Manager/ Functional Head of (VP)
£80,000 - £110,000 15% - 30%
Manager (AVP) £60,000 - £80,000 0% - 25%
Analyst £45,000 - £65,000 0% - 20%
Associate £30,000 - £42,000 0% - 10%
goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
BANKING SECTORS
BANKING SECTORS
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PRACTICE TAX
Top 20
Classic Tax £34,000 - £41,000 £38,000 - £48,000 £51,000 - £63,000 £61,000 - £73,000 £78,000 - £92,000 £90,000 - £115,000 £115,000 - £190,000
Indirect Tax £34,000 - £41,000 £42,000 - £49,000 £50,000 - £68,000 £67,000 - £82,000 £85,000 - £115,000 £105,000 - £150,000 £125,000 - £220,000
Human Capital £35,000 - £42,000 £46,000 - £48,000 £52,000 - £62,000 £67,000 - £85,000 £78,000 - £110,000 £110,000 - £145,000 £125,000 - £210,000
Private Client £35,000 - £42,000 £42,000 - £48,000 £52,000 - £58,000 £63,000 - £78,000 £78,000 - £110,000 £95,000 - £140,000 £125,000 - £230,000
Senior Assistant Manager Manager Senior Manager Director Principle Partner Role
Top 4
International Tax & Tax Consulting
£42,000 - £52,000 £53,000 - £63,000 £63,000 - £115,000 £105,000 - £175,000 £145,000 - £285,000 £280,000 - £850,000
M&A Tax £44,000 - £53,000 £55,000 - £72,000 £68,000 - £120,000 £110,000 - £185,000 £145,000 - £285,000 £280,000 - £850,000
Indirect Tax £42,000 - £51,000 £53,000 - £69,000 £65,000 - £105,000 £105,000 - £165,000 £145,000 - £285,000 £280,000 - £850,000
Human Capital £42,000 - £51,000 £53,000 - £69,000 £68,000 - £120,000 £102,000 - £165,000 £145,000 - £285,000 £280,000 - £850,000
Private Client £42,000 - £48,000 £52,000 - £61,000 £63,000 - £95,000 £102,000 - £145,000 £145,000 - £285,000 £280,000 - £850,000
FS Tax £44,000 - £53,000 £55,000 - £72,000 £68,000 - £125,000 £110,000 - £185,000 £145,000 - £285,000 £280,000 - £850,000
Assistant Manager Manager Senior Manager Director ED/AP Grades Partner Role
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BONUS GUIDE• INTRODUCTION• INVESTMENT BANKING• RETAIL & WHOLESALE BANKING• BUYSIDE• OTHER FINANCIAL SERVICES• CONCLUSIONS
3
54goodmanmasson.com T: +44(0)20 7336 7711 E: [email protected]
BONUS GUIDE
INTRODUCTIONWELCOME TO THE 2018 BANKING AND FINANCIAL SERVICES BONUS SURVEY.
This year, we saw a record number of participants share with us details on both
fixed and variable pay, as well as their optimism for the year ahead. As usual, the
information makes very interesting reading. We work with a wide variety of finance
professionals in an array of specialisms, so for ease of digestion, we break the
analysis down into industry subsectors.
Following the shocks of 2016 and the unexpected post-Brexit vote bounce, 2017
saw a more or less continued upward curve of positivity. The Global equity markets
remain buoyant, with growth seen across the major developed economies, with the
US especially enjoying a bounce as Trump economics of deregulation and tax cuts
drove profitability at the US banks in particular.
Concerns on Brexit remain but the short-term transition period has calmed the
job market and we saw strong hiring demand across most of the UK Financial
services markets, during 2017. We have a small shift towards the wider UK, with the
continued growth of regional centres, most notably with HSBC’s ring-fenced bank
in Birmingham driving headcount growth outside of London and we expect that
decentralisation to continue with the UK to some extent over the years ahead. Brexit
will no doubt have an impact but current estimates have dropped from the wildly
negative predictions of the referendum period and we are seeing, at least for now,
a calm picture supporting hiring demand for financial professionals especially within
Banking in London and beyond.
It’s also worth noting the strong profitability, increasing share prices (in many but
not all major FS firms and banks) should support and help to increase or at least
maintain compensation across the industry whilst in the high demand areas such
as Regulation, Cyber and the revenue generation areas the demand and lack of
availability of talent has the potential to have a much more aggressive impact on
overall compensation.
Our own statistics show strong growth in client hiring across 2017, with early
indicators for 2018 even stronger so it will be interesting to look at how 2018 plays
out. For now, however, let’s look back at the keys sectors and their compensation
delivers from 2017.
Richard Hoar
Banking Director
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BONUS GUIDE
INVESTMENT BANKING2017 WAS ON THE WHOLE A BETTER YEAR FOR INVESTMENT BANKING THAN WAS GENERALLY EXPECTED IN LONDON BEARING IN MIND BREXIT, THE REGULATORY BURDEN, INCREASING COMPETITION FROM ONLINE PLATFORMS AND TOUGH MARKET CONDITIONS.
Banks on the whole have been reporting relatively strong figures and from our
own market research the vast majority intend to be hiring in London in 2018 and
not attrition hires only. We have seen an increase in job flow across our vertical
specialisms within Investment Banking with an average 17% compared to a YoY
comparison.
In terms of pay, the respondents to our 2018 Salary Survey, the majority (74%)
reported a payrise in 2018 which is an increase for the majority for the third year
running (69% in 2017 and 63% in 2016). Two thirds of respondents also received
an increase that exceeded their own expectations, and 91% received an increase
of more than 5% again for the third year running. Showing a general uptick in the
Investment Banking market.
The communication within teams around payrise expectations is clearly being
very closely managed with 14% receiving increases that were below their own
expectations (a much stronger picture than in 2017, when 30% thought their
expectations were undermanaged), however, this is well within the margin of error
that would be expected in any survey of this size.
Focussing on the outlook from a bonus perspective in 2018, 89% received a bonus
again within the margin of error for the 88% that was received in 2017. Once
again this aligns closely to the 2016 figure of 92% and shows a continuation of
the flattening off from the rising trench with say 68% and 79% in 2014 and 2015.
Considering the wide range of job types that we recruit with Goodman Masson and
prevailing headwinds within certain Investment Banking market segments we feel
confident that our conclusion in 2017 that circa 90% receiving bonuses is most likely
the peak of the market for bonus awards.
With regards to expectation management, it is a vastly different picture to the close
management surrounding pay increases in 2018. Whilst 89% received a bonus, 34%
received bonuses that were below their expectations, although with cost pressures
across the Investment Banking sector and conversations we have been having with
senior executives this is to be expected. From our survey results in 2017 and 2016 it
again signals an improvement around message management, with a drop from 37%
in 2017 and nearly 50% in 2016.
Finally, we asked respondents to let us know their optimism around their bonus for
2019. 37% are more optimistic about their bonus opportunity in 2019, which is a
drop in optimism to levels we last saw in 2016’s survey, when 35% felt optimistic for
the year ahead. Given question marks around Brexit this is to be expected, however,
with general market indicators looking positive we are hoping this is a case of people
being overly pessimistic, rather than a sign London is due for a hit.
Overall, we have seen a very interesting set of figures across our 2018 survey and it
is good to see that the vast majority of employees are receiving both bonus and pay
increases.
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RETAIL & WHOLESALE BANKINGTHE RETAIL AND WHOLESALE SECTOR CONTINUED TO ENJOY A DECENT PERFORMANCE IN 2017, WITH CONSUMER CONFIDENCE REMAINING STEADY ALTHOUGH AT THE TIME OF WRITING CONCERNS OVER INDIVIDUAL DEBT DO CAST A SHADOW OVER 2018 AND BEYOND.
The 2019 deadline of the big banks to ring fence their retail operations remains
a challenge, although HSBC is now fully entrenched in Birmingham and the
others are moving toward these regulatory goals.
The threat of the challenger banks in retail particularly, remains with the
challengers outperforming the big 5 UK banks in growth, cost to income ratio
and RoE in 2017.
Interestingly, a recent survey of the sector showed that for the first time in a
number of years, the top priorities for the leadership of the major retail banks
was not reducing cost (the top priority for most years since the crash) but has
evolved with the improving of the digital experience of their customers and
increasing the use of big data and enhanced analytics not taking the top two
spots for business priorities.
A sign there of improving conditions and the huge importance of technology in
the sectors continued evolutions.
Against this backdrop we asked a wide range of finance professionals in the
sector for their views on salary, bonus and optimism.
For 2017 our respondents reported that a decent majority (57%) had received a
pay increase for their work in 2017, a slight drop on the previous year (63%) but
within a margin of error and also similar to the results of the previous years. The
only downside being that this award was on the whole less than 5% which is a
sizable drop from last year, when over 60% reported an increase over 5%.
This lowering of actual pay increases from the previous year wasn’t well
prepared for by managers as 65% of those surveyed, who received an award,
felt it was below their expectations.
From a bonus perspective, 62% of individuals in the sector received a bonus for
2017 which remains in line with the last two years (63% & 60%).
These bonus awards were aligned to individual expectations in the majority of
cases (51%) with the remainder equally split between those receiving a bonus
either above or below expectations so you could argue that managers have
done well to have around 75% of their staff either receiving an expected or
above expectations bonus payment.
Lastly in terms of overall optimism, 59% of our respondents were optimistic
about 2018, which again is exactly aligned to the previous year (60%) and shows
a positive hold in optimism over a 2-year period, which is, we believe, a good
thing especially as two years before a high majority (86%) were not optimistic
about the future.
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BONUS GUIDE
BONUS GUIDE
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BUYSIDEBUYSIDE SAW AN INTERESTING YEAR IN 2017 AND A CHALLENGING START TO 2018, WITH A CHANGE IN INVESTMENT FOCUS AND THE POTENTIAL FOR A TURN, FROM A BULL TO A BEAR MARKET.
The gradual creep towards a trade war between the world’s two largest
economies is a real cause for concern and there are question marks over
whether many fund managers will be able to continue to generate the returns
they have been, in a market that has potentially turned. We have included
Private Banking within our Buyside data.
Despite this macro outlook, early indications for 2018 show that we have
seen an increase in job flow, of 14% in comparison to 2017. We expect this
to continue throughout the year following the results of our hiring sentiment
survey, published in January 2018, which mirrors the 65% of Buyside CEO’s
who expected to increase hiring last year. We have seen an increase in
clients approaching us to assist with international hiring as well, with Paris,
Luxembourg, Switzerland and Frankfurt mandates currently being recruited for,
from our London hub.
71% of respondents saw a payrise in 2018 and 46% of these saw an increase
of more than 5% (down from 80% last year), this is a large increase on the 45%
who received a pay increase in 2017 and above 2016’s figure of 57%. With
regards to the size of the increase, 40% received an increase of less than they
were expecting, showing that expectation management has a way to go to
improve.
Turning to the bonus picture, 96% of respondents received a bonus in 2018, in
comparison to 94% in 2017. Buyside remains the area of Financial Services most
likely to pay strong bonuses on the back of good business performance.
Interestingly, the mood of optimism is far more prevalent in the Buyside industry
with 94% feeling more optimistic about their bonus in 2019, despite 40%
receiving less in bonus than they expected in 2018. This is again the highest
in the survey and a significant increase on the optimism levels we recorded in
2017, when 81% were more positive about the year ahead.
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BONUS GUIDE
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OTHER FINANCIAL SERVICESOUR FINAL GROUP FOR ANALYSIS COMPRISES THOSE FINANCE PROFESSIONALS WORKING OUTSIDE OF THE BUYSIDE AND BANKING WORLD COVERING A DIVERSE GROUP OF INSTITUTIONS INCLUDING INSURERS, BROKERS AND FINANCIAL MARKETS FOCUSED CONSULTING FIRMS.
This group enjoyed a positive year with 75% of those surveyed receiving a pay
increase for their work in 2017. Up from 68% recorded the previous year and
showing an upward trend having been 63% two years ago.
Of those receiving an increase a fortunate 40% saw pay increase by over 5%,
whilst in terms of overall expectations the majority (63%) had an increase, or
lack of in line with expectations, showing that managers yet again could deliver
to expectations.
In terms of bonus awards a large majority of those surveyed (97%) were paid
a bonus for their work in 2017, which is up from the previous year (81%) and
shows a 5 year upward trend. This is certainly linked the improving conditions
within the sector.
Just under half the group (48%) received a bonus award aligned to expectations,
whilst a fortunate 17% were awarded a bonus in excess of personal
expectations.
Lastly in terms of overall optimism, an unsurprising majority (95%) were more
optimistic about 2018, which is a huge jump from the 48% who were optimistic
at our last survey and again links to the feeling that despite Brexit and other
challenges, the London FS markets remain (for now at least) very confident and
optimistic for the future.
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BONUS GUIDE
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CONCLUSIONSDETAILED ANALYSIS OF THIS YEAR’S RESULTS SHOWS SOME VERY POSITIVE DEVELOPMENTS FROM LAST YEAR’S DATA AND IS SUPPORTIVE OF THE OVERALL VIEW THAT 2017 WAS ON THE WHOLE A POSITIVE AND OPTIMISTIC YEAR FOR FINANCIAL SERVICES AND BANKING, IN LONDON AND THE WIDER UK MARKETS.
If last year’s results contained both uncertainty from Brexit and a potential
economic slowdown as well as some positive signs, especially from the
improving financial Performance of many institutions then this year we see the
generally more upwards trajectory of the markets having a positive impact on
our results.
As usual we look at the 3 keys areas of pay increases, bonus awards and overall
optimism in terms of the cumulative results for the 2017 data.
1. Cumulate Pay Increase
This year saw our highest recorded result in terms of pay increase, with a
record 69% of all respondents securing an award in pay growth for 2017. This
is a notable increase on the previous two years (both flat at 60%) and betters
the surveys highest result back in 2014, where we had a fortunate 66% of
respondents receiving pay increases.
We speculated last year that the overall optimism of our respondents (which
saw a big jump on previous years optimism) would translate into improving
pay awards and I’m pleased to report that 12 months later that speculation
has materialised into the reality of a highest recorded cumulative pay increase
across our respondents.
2. Bonus awards
Again, we have recorded our strongest cumulate score in terms of bonus
awards, with a record 86% of our respondents receiving a bonus award for their
efforts in 2017. This continues the trajectory we have seen over the last few
years with the low of 2014 (only 68% received a bonus) flattening to a solid 80%
since then and now finally leaping up towards 90% for 2017.
Interestingly this cumulate figure is driven up strongly by 3 of our 4 sub sectors
as those in Investment banking, the buyside and other FS sectors all had record
years, in terms of large majorities getting bonuses awarded, whilst retail banking
(certainly less of a bonus expectant community) held firm at the same levels
recorded for the last few years.
3. Cumulative optimism
Given the strong increase in bonus awards recorded across the industry for
2017 and the more slight but still notable uptick on the cumulate pay increases
awarded, it’s not surprising that we recorded an overall increase in cumulative
optimism for the year ahead, with 71% of those surveyed more optimistic for
2018 and beyond.
This compares with a score of 59% who were more optimistic for 2017 and I
think linked well to the other market improvements and increased bonus and
pay awards.
As usual, there are still a good number of those feeling less optimistic and many
challenges remain on the horizon (notably the continuing Brexit negotiations).
Optimism may well fall away but at the time of writing, the feel in the market
remains highly positive and energetic and we remain like our respondents highly
optimistic for 2018 and beyond.
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BONUS GUIDE
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