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HONG KONG

SALARY GUIDE

2015

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morganmckinley.com.hk

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The hiring market in Hong Kong has remained buoyant in 2014. The most active specialist disciplines across the market include compliance and regulatory roles, as well as Delta-One developers and project managers/business analysts within the financial services sector, and service delivery, data centre operations and data network specialists in the commercial sector. The following report provides an overview of the salary trends and expectations from the Hong Kong market for 2015. It also presents the results collected from Morgan McKinley Salary Survey 2015 (page 40). The majority of Hong Kong permanent and contract/temporary employees, who responded to the 2015 Morgan McKinley Salary Survey, reported having received an increase in salary in the last twelve months. However, these salaries have varied dependent upon the sector, which is an indicator of certain segments in the market performing better than others. Average salary increases this year have been moderate for permanent employees, with most professionals (60%) saying they received an increment of between 1-8 percent. This is indicative of companies still being under tight cost pressures particularly in the banking sector, for example. European banks have not performed as well as their American counterparts, and this has been reflected in bonus payments. Areas which have seen noteworthy uplifts in annual pay include audit, risk and compliance. The contract/temporary market has continued to grow across several sectors and Hong Kong professionals are starting to see the benefit in taking on these contract roles. For individuals who may have been out of the job market or for professionals looking to change career, these types of positions give individuals the opportunity to re-enter the workforce and obtain new skills, which may lead to permanent opportunities down the line. It is also a good entry point for overseas professionals looking to work in the Hong Kong market and gain experience. Demand for contract and temporary staff is expected to maintain its rise in popularity in 2015, as multinational organisations continue to face headcount constraints.

Most contract and temporary professionals (73%), who responded to the Morgan McKinley Salary Survey 2015, report that they have received an uplift in their salary or rate of pay. However, as with permanent employees, the majority of these increases are fairly moderate. According to Morgan McKinley, this shows the companies ability to control salary increases in the temporary and contract market. Many companies are able to replace professionals quickly and with ease if there is attrition in the temporary space. I hope you enjoy reading the detailed report. If you have any thoughts on current salary trends in professional occupations in Hong Kong, we would be very interested to hear from you.

RICHIE HOLLIDAY

CHIEF OPERATIONS OFFICER - APAC Tel: +852 3907 3909 | rholliday@morganmckinley.com

MANAGING DIRECTORS LETTER

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CONTENTS

RISK & COMPLIANCE 37

SALARY SURVEY RESULTS 40

BANKING & FINANCIAL SERVICES 5 Asset Management 6

Operations 7

Hedge Fund & Private Equity 9

Investment Banking & Capital Markets 10

Private Banking 11

FINANCE & ACCOUNTING 12

Commerce & Industry 13 Financial Services 15

HUMAN RESOURCES 17

Commerce & Industry 18

Financial Services 20

IT 22

Commerce & Industry 23

Financial Services 25

INSURANCE 27

OFFICE SUPPORT 29

Commerce & Industry 30 Financial Services 31

SALES & MARKETING 32

General Overview / PR / Communications 33

Technology / Consumer Products / Wine 34 Retail 35

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TOP 3 MOST IN-DEMAND POSITIONS:

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Regulatory Operations Relationship Management within Private Banking Analyst and Associate with technical & linguistic skills within Investment Banking

BANKING & FINANCIAL SERVICES

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BANKING & FINANCIAL SERVICES

ASSET MANAGEMENT PERMANENT Compared with the previous year, 2014 was a good year for the asset management industry. There was an increase in hiring across front, middle and back office functions. Movement remained highest for sales and marketing position. Due to ongoing changes in regulatory activities, there has been growing demand for support roles such as product development, compliance and operations. Replacement hires continue to dominate. However, as 2015 begins, optimism remains high with a number of expansions and new headcount available. This will help create opportunities for new talent from other financial sectors to join the buy-side. Regarding salaries, employers continue to be constringent in new hires and modest with year-on-year salary increments for existing employees.

MOVEMENT REMAINED HIGHEST FOR SALES AND MARKETING POSITIONS. DUE TO ONGOING CHANGES IN REGULATORY ACTIVITIES , THERE HAS BEEN GROWING DEMAND FOR SUPPORTING ROLES SUCH AS PRODUCT DEVELOPMENT, COMPLIANCE AND OPERATIONS.

However, employers remain highly competitive in terms of retention due to the limited pool of talent within the industry.

ROLE ANALYST ASSOCIATE / AVP

VP / SR. MANAGER

SVP / DIRECTOR

MD

FUND MANAGER $45k - $55k $55k - $70k $70k - $95k $120k - $200k $250k+

RESEARCH ANALYST $30k - $45k $45k - $60k $63k - $83k $92k - $150k $180k+

RETAIL / INSTITUTIONAL MARKETING $15k - $25k $25k - $45k $45k - $65k $65k - $90k $150k+

RFP WRITER / INVESTMENT WRITER $20k - $30k $30k - $45k $50k - $70k $70k - $100k $100k+

PERFORMANCE ANALYST $12k - $20k $20k - $35k $35k - $45k $45k - $70k -

RETAIL / INTERMEDIARY SALES $20k - $35k $35k - $50k $50k - $85k $80k - $120k $150k+

INSTITUTIONAL SALES $25k - $35k $35k - $60k $60k - $92k $92k - $170k $200k+

CLIENT RELATIONSHIP / ACCOUNT MANAGEMENT $17k - $25k $25k - $45k $45k - $70k $70k - $100k $100k+

EXECUTION TRADER / DEALER $20k - $30k $30k - $50k $50k - $70k $70k - $120k $150k+

PRODUCT DEVELOPMENT / MANAGEMENT $20k - $30k $30k - $50k $50k - $70k $70k - $120k $100k+

PRODUCT SPECIALIST $30k - $45k $45k - $65k $65k - $92k $95k - $150 $200k+

ASSET MANAGEMENT | PERMANENT (HKD per month)

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BANKING & FINANCIAL SERVICES

OPERATIONS PERMANENT In 2015, we are expecting many companies to be making slightly more positive announcements, with regards to bonuses, as compared with the previous couple of years. Within operations, this may signify increases from negligible figures to 1-2 months salary. However, it is still expected to be more positive. We do not foresee big changes in base salaries. They are likely to remain around current levels, with minimal increases, possibly in line with inflation. Therefore, we expect total compensation in operations to be slightly above 2014. Any significant increases within this area would likely be within the regulatory operations space. This niche area of operations is growing, and demand outweighs supply, which makes salary increases probable. The market will still be looking to pay around 15 percent increments on average to entice professionals to join.

OPERATIONS CONTRACT Contracting has continued to be a steady source of hiring throughout the market last year. In 2015, the majority of businesses in Hong Kong are looking to build on their flexible workforce, with hires being made across the operations space. Contracts are a good solution for maternity cover, short term projects and covering daily business operation. Experienced professionals that are able to deliver higher quality work and require less training are in demand, more so than the more junior hires seen on the permanent side.

ANY SIGNIFICANT INCREASES WITHIN THIS AREA WOULD LIKELY BE WITHIN THE REGULATORY OPERATIONS SPACE. THIS NICHE AREA OF OPERATIONS IS GROWING AND DEMAND OUTWEIGHS SUPPLY.

2014 saw continued offshoring within the banking operations sector. Headcounts within the back office and certain areas of middle office were repositioned in companies to low cost centres. However, 2014 still saw a significant number of replacement hires being made. Professionals moving to other areas of financial services such as the buy-side or leaving financial services, altogether, left companies in need of highly trained individuals. Restructuring within operations saw middle management roles being replaced with more junior hires. In some cases, there are examples of management and/or strategic responsibilities being delegated upwards and daily responsibilities being delegated downwards. Therefore, we expect 2015 to remain positive yet steady. Significant offshoring is not expected this year, as the majority of roles still based in Hong Kong are considered strategically important to remain. This is based on communication lines, and the benefit of having direct contact (and the ability to build strong relationships) with the front office or with clients. Professionals with a good understanding of trading risk, as well as the processing side, are in growing demand. Companies are looking for energetic and adaptable people that have a strong knowledge of the trade life cycle, who are looking to gain more exposure within the operations space.

We expect this trend to continue in 2015, with a greater percentage of the workforce being contract hires ra