Report 006 Salary Benchmarking: Banking & … 006 Salary Benchmarking: Banking & Financial Services...

Report 006Salary Benchmarking:Banking & Financial Services

Life Working Series 2013

3

ContentsFront Office . . . . . . . . . . . . . . . . . 18

Overview . . . . . . . . . . . . . . . . . . . 19Investment Banking . . . . . . . . . . . . . . 20

Permanent . . . . . . . . . . . . . . . . . 20

Operations & Middle Office . . . . . . . . 21Overview . . . . . . . . . . . . . . . . . . . 22Investment Banking . . . . . . . . . . . . . . 23

Permanent . . . . . . . . . . . . . . . . . 23

Risk. . . . . . . . . . . . . . . . . . . . . . . 24Overview . . . . . . . . . . . . . . . . . . . 25Investment Banking . . . . . . . . . . . . . . 26

Contract . . . . . . . . . . . . . . . . . . 26Permanent . . . . . . . . . . . . . . . . . 27

Investment Management . . . . . . . . . . . 28Contract . . . . . . . . . . . . . . . . . . 28Permanent . . . . . . . . . . . . . . . . . 29

Market Outlook . . . . . . . . . . . . . . . . 4

Change & Transformation . . . . . . . . . . 5Overview . . . . . . . . . . . . . . . . . . . . 6Financial Intermediaries . . . . . . . . . . . . 7

Contract . . . . . . . . . . . . . . . . . . . 7Permanent . . . . . . . . . . . . . . . . . . 7

Investment Banking . . . . . . . . . . . . . . . 8Contract . . . . . . . . . . . . . . . . . . .8Permanent . . . . . . . . . . . . . . . . . .8

Investment Management . . . . . . . . . . . . 9Contract . . . . . . . . . . . . . . . . . . .9Permanent . . . . . . . . . . . . . . . . . .9

Finance . . . . . . . . . . . . . . . . . . . . 10Overview . . . . . . . . . . . . . . . . . . . 11Financial Intermediaries . . . . . . . . . . . 12


Investment Banking . . . . . . . . . . . . . . 14Contract . . . . . . . . . . . . . . . . . . 14Permanent . . . . . . . . . . . . . . . . . 15


Technology . . . . . . . . . . . . . . . . . 30Overview . . . . . . . . . . . . . . . . . . . 31Financial Intermediaries . . . . . . . . . . . 32


Investment Banking . . . . . . . . . . . . . . 40Contract . . . . . . . . . . . . . . . . . . 40Permanent . . . . . . . . . . . . . . . . . 45


About Astbury Marsden . . . . . . . . . . 58

4

When reflecting on 2012 it is hard not to sound gloomy about what was undeniably the toughest year for City recruitment for more than a decade. Across the City, hiring followed a general downward trend throughout the year, arriving at its lowest recorded level in December, lower even than the nadir of hiring seen during the financial crisis. In effect, by year end City hiring had ground to a halt as financial firms continued to remove costs, assess sustainability of individual business lines and swallow the rising costs of regulatory change.

These business challenges, combined with a tepid outlook for the global economy, meant that vacancy volumes ended the year 35% down on 2011 volumes.

So in the context of a muted job market it is little wonder that candidate registrations fell to half the level seen in 2011. And despite this huge fall, the apparent oversupply of applicants affected salaries with pay rising only 2% over the year. Bonus pools were also substantially reduced, falling by 60% on bonus levels in the prior year.

It was with great relief for job hunters (and recruiters!) that 2013 opened more strongly off the back of a more optimistic economic environment. However, since the turn of the year hiring volumes have remained largely consistent, contrary to the usual hiring cycle in the City; the volume of new vacancies usually trends upwards from February through to the end of Q2 before retracing across the second half of the year.

Accordingly, the outlook for the first half of the year looks set to continue as we have seen during the first quarter. Overall, hiring forecasts are expected to remain at current levels throughout most of the year. As a result we expect to see the continued rebalancing in the candidate supply over the coming months.

While amongst employees there exists a significant level of dissatisfaction with their employer, few will act impulsively when considering whether to enter the job market. However, as the year progresses we expect to see a degree of optimism return to the candidate market. Employers, therefore should not under-estimate the importance of retention strategies to their organisation this year.

We anticipate another year of downward pressure on total remuneration right across the financial sector, although potential pay changes imposed by Europe are likely to influence how packages are constructed.

Thank you for your continued support of Astbury Marsden, I hope that you find this report informative and I welcome your comments.

Mark Cameron+44 (0)20 7065 [email protected]

Market Outlook

Change & Transformation

Astbury Marsden Salary Benchmarking 2013: Change & Transformation

6

Review of 2012

There was a feeling of optimism for change and transformation professionals going into 2012. The raft of new regulatory changes and the impact these would have on the industry was seen as providing a boost for change practitioners. This sense of optimism was reinforced in the first quarter as a number of major projects kicked off. The importance of these change programs meant many were given budget priority, impacting on other projects, many of which were put on hold or scaled back in comparison to their original plans.

2012 saw candidates with regulatory change experience in high demand, in particular in the contractor market. A number of firms required additional short-term subject matter knowledge to deliver projects and paid a premium day rate to achieve it .

Change & Transformation

“Risk & Control and Conduct Risk are also key areas in the market which will lead to new frameworks”

Outlook for 2013

As we head into the second quarter, it appears that 2013 will mirror 2012 with a continued focus on regulatory change. Programmes of work focused around CASS, EMIR, FATCA and Dodd Frank will continue to dominate budgets and headcount. The challenge for firms will be to deliver these changes to their business to meet FSA requirements, and to do so without damaging their reputation or service to their clients. As a result, candidates who not only understand regulation but also operational procedures behind specific business areas, client on-boarding and settlements for example, will be sought. Several other areas will see investment, again through necessity rather than choice. For example, addressing concerns around LIBOR and interest rate swaps continues to dominate the press and will remain a focus for banks in the coming year.

Risk & Control and Conduct Risk are also key areas in the market which will lead to new frameworks. The emergence within the industry of more and more firms having a central pool of change resources to call on, much like an internal consultancy, will also see investment in both a contract and permanent headcount.

In what looks like it will be a challenging year, there are still reasons to be optimistic within the Change Management space. There will continue to be a need for changing processes, whether this is from an efficiency, cost reduction or regulatory perspective. Although there will be challenges around rates and salaries and strong competition for roles, 2013 looks like it will follow this trend, especially on the regulatory front.


7

Financial Intermediaries

Contract

Job Title Base Min (£)

Base Max(£)

Bonus Min (£)

Bonus Max (£)

PMO (Analyst - Director) 40,000 120,000 0 30,000

Project/Programme Manager 60,000 130,000 0 40,000

Subject Matter Expert 60,000 75,000 0 8,000

Subject Matter Expert/Business Analyst 55,000 80,000 0 10,000

Business Analyst 40,000 60,000 0 5,000

Lead Business Analyst 55,000 80,000 0 10,000

Permanent

Job Title Basic (£pd)

Intermediate (£pd)

Expert (£ pd)

Process Analyst 300 350 400

Business Analyst 450 500 550

Lead Business Analyst 550 600 650

PMO 400 500 600

Change Manager 500 600 700

Architect 500 600 700

Project Manager 600 650 750

Programme Manager 700 800 900

Financial intermediaries includes financial exchanges, brokers, clearing houses, rating agencies, software and data providers.


8

Investment Banking

Contract

Permanent


Intermediate (£pd)

Expert (£ pd)




PMO 450 550 650






Base Max(£)

Bonus Min (£)

Bonus Max (£)

PMO (Analyst - Director) 50,000 150,000 0 40,000

Project/Programme Manager 75,000 175,000 0 100,000






9

Investment Management

Contract


Base Max(£)

Bonus Min (£)

Bonus Max (£)

Project Manager Assistant 30,000 40,000 0 2,000

PMO (Analyst – Director) 50,000 130,000 0 10,000

Project/Programme Manager 75,000 150,000 10,000 50,000





Permanent


Intermediate (£pd)

Expert (£ pd)




PMO 450 550 600





Investment management includes wealth management, asset management, investment management, pension and hedge funds.

Finance

Astbury Marsden Salary Benchmarking 2013: Finance

11

Review of 2012

The last 12 months were extremely challenging with many companies cutting heads and costs. As banks restructured and employees made internal moves, we saw few roles released into the market. A number of skills gaps emerged in many organisations as departing employees were not replaced in response to the unpredictability in the market. This led to a drop in both permanent and contract hiring volumes during the year.

The small amount of recruitment we did see was mostly for replacement hires; albeit we did experience some pockets of hiring within product control and external reporting.

As predicted in last year’s report, overall demand was sporadic and salary increases and bonuses were modest . Candidates on the whole entered 2013 with fairly balanced expectations of salaries and promotion possibilities.

Finance

“We are experiencing an on going spotlight on complying with the raft of new regulation ranging from Basel III to FATCA”

Outlook for 2013

Since the New Year, there has been a renewed focus on stability. Whilst we don’t expect significant growth in hiring this year, team skill shortages can now be addressed as banks become more optimistic.

This year, we expect to see a focus on the new regulations coming into force and the spotlight will be on frameworks ranging from Basel III to FATCA. As plans take shape, and deadlines are finalised, the competition for these skillsets will be fierce and shortages of talent will emerge in these areas.

Despite this, we do not expect salary levels to change much this year, with most parts of the industry staying below previous year’s levels. Bonuses in general will stay low as growth and profits are hit, but not exceeded .

Although recruitment usually gathers pace during Q2 and Q3, these next few months will be crucial in

pre-empting how the rest of the year will look and whether the optimism currently felt in the market is justified.


12

Contract


Intermediate (£pd)

Expert (£ pd)

Financial Analyst 220 300 350

Cost Accounting Controller 200 275 350

Regulatory Reporting Officer 200 300 400

Statutory Accountant 250 350 400

Balance Sheet Control Analyst 250 300 350

Financial Controller 220 280 350

Reconciliation Analyst 150 200 300


Finance Business Partner 250 300 450

Finance Business Analyst 300 400 500

Finance Project Manager 400 500 600

Finance PMO 300 350 450

Fund Accountant 200 300 400

Product Controller 250 325 400

Financial IntermediariesFinancial intermediaries includes financial exchanges, brokers, clearing houses, rating agencies, software and data providers.


13

Permanent


Base Max(£)

Bonus Min (£)

Bonus Max (£)

Management Accountant

0-1 Years PQE 50,000 60,000 0 10,000

1-2 Years PQE 55,000 65,000 0 15,000

3+ Years PQE 65,000 80,000 0 80,000

8+ Years PQE 75,000 110,000 0 100,000

Financial Accountant

0-2 Years PQE 50,000 60,000 0 7,000

2-5 Years PQE 55,000 80,000 0 50,000

5+ Years PQE 70,000 110,000 0 100,000

Fund Accountant

0-1 Years PQE 45,000 55,000 0 10,000

1-2 Years PQE 45,000 65,000 0 15,000

3+ Years PQE 55,000 90,000 0 55,000

Finance Director/Chief Finance Officer

8+ Years PQE 90,000 150,000 0 1,000,000+



14

Investment Banking

Contract


Intermediate (£pd)

Expert (£ pd)












PMO 300 375 500

Product Controller (flow and cash) 250 350 400

Product Controller (exotics and hybrids) 250 350 420


15

Investment Banking

Permanent


Base Max(£)

Bonus Min (£)

Bonus Max (£)

Financial Accounting

Associate 45,000 65,000 0 5,000

AVP 58,000 80,000 0 10,000

VP 75,000 110,000 5,000 20,000

Director 100,000 140,000 10,000 60,000

Accounting Policy/Technical Accounting

Associate 50,000 65,000 0 5,000

AVP 58,000 80,000 0 10,000

VP 75,000 110,000 5,000 20,000

Director 100,000 140,000 10,000 60,000

Regulatory Reporting

Associate 40,000 60,000 0 5,000

AVP 55,000 75,000 0 10,000

VP 75,000 100,000 5,000 20,000

Director 100,000 130,000 10,000 60,000


Base Max(£)

Bonus Min (£)

Bonus Max (£)

Management Information/Financial Analysis

Associate 45,000 65,000 0 5,000

AVP 58,000 80,000 0 10,000

VP 75,000 110,000 5,000 20,000

Director 100,000 140,000 10,000 60,000

Product Control (flow and cash)

Associate 50,000 65,000 0 5,000

AVP 65,000 80,000 0 10,000

VP 75,000 110,000 5,000 20,000

Director 100,000 140,000 10,000 60,000

Product Control (exotics and hybrids)

Associate 50,000 70,000 0 5,000

AVP 65,000 85,000 0 10,000

VP 85,000 115,000 5,000 20,000

Director 105,000 145,000 10,000 60,000


16


Contract


Intermediate (£pd)

Expert (£pd)










Finance Business Analyst 350 450 550

Finance Project Manager 400 500 600

Finance PMO 300 350 500

Fund Accountant 200 300 400

Product Controller 250 325 400



17


Permanent


Base Max(£)

Bonus Min (£)

Bonus Max (£)

Management Accountant

Part Qualified 25,000 40,000 0 10,000

0-1 Years PQE 45,000 60,000 0 15,000

1-2 Years PQE 50,000 65,000 0 15,000

3+ Years PQE 60,000 85,000 0 80,000

8+ Years PQE 75,000 110,000 0 100,000

Financial Accountant

Part Qualified 20,000 35,000 0 10,000

0-2 Years PQE 45,000 60,000 0 15,000

2-5 Years PQE 55,000 80,000 0 50,000

5+ Years PQE 70,000 110,000 0 100,000

Fund Accountant

Part Qualified 25,000 45,000 0 10,000

0-1 Years PQE 45,000 55,000 0 20,000

1-2 Years PQE 45,000 65,000 0 20,000

3+ Years PQE 55,000 90,000 0 55,000


Base Max(£)

Bonus Min (£)

Bonus Max (£)

Hedge Fund Product Control

Part Qualified 25,000 45,000 0 10,000

0-3 Years PQE 45,000 65,000 0 20,000

3+ Years PQE 60,000 95,000 0 85,000

8+ Years PQE 85,000 120,000 0 150,000

Finance Director/Chief Finance Officer

8+ Years PQE 90,000 150,000 0 1,000,000+


Front Office

Astbury Marsden Salary Benchmarking 2013: Front Office

19

Review of 2012

As in previous years 2012 started with an air of renewed optimism in the City. However, that optimism faded fairly quickly as the market for advisory fees hit the lows experienced in 2008. Consequently, many large investment banks made redundancies during the year, while several smaller advisory firms either closed down or merged with competitors. Overall, we saw no real growth in the market. Most of the hiring was at the junior (Analyst – Associate) level or was a replacement hire leading many candidates to seek employment outside the City.

We saw some improvement in Q4 as deal flow picked up and firms produced stronger results. However, these only really made up for the deficit already created earlier in the year and hiring remained muted. M&A continued to lead the charge on a recruitment basis while ECM remained very quiet. Activity was most robust across FIG, natural resources, energy and TMT with other sectors largely struggling with staff cut-backs.

In contrast to previous years, boutique firms struggled to grow and several smaller firms disappeared during the year or were consolidated. A couple of houses did go on recruitment drives

Front Officewith a view to developing their London platforms; however these were very much the exception. Firms that maintained their market position during 2012 were considered to have performed well in what was undoubtedly a very difficult market.

Outlook for 2013

The increase in activity at the end of 2012 has continued and the M&A market is showing early signs of improvement. Debt Advisory and Restructuring appear to be performing well as we head into the second quarter. However, the ECM market remains challenging .

These developments are yet to manifest in the recruitment market with the majority of firms still waiting to see exactly how things pan out before deciding on a hiring strategy for 2013. At present, we are seeing more demand for Analyst level hires but have not yet seen any clear growth plans by firms looking to develop specific teams. Hiring within the Quantitative space has started slowly.

Most new headcount requirements are likely to be released in Q2 due to budgets not being approved until late Q1. There is likely to be pockets of hiring within Quantitative Analytics throughout the year.

We expect that the banks will focus their quantitative hiring within the Counterparty Credit Risk and CVA space. Many of the existing models in this space are unlikely to pass both stress testing and back testing implemented in the new Basel III requirements. Due to this, many of the banks will need to focus their time on developing new prototypes as well as enhancing existing models.

Other areas of focus will be around investment banks new initiatives to centralise the quantitative libraries bank wide. Hiring for these projects kicked off heavily in 2012 and we have also seen some further hiring for similar projects in 2013.

Given that pipelines are looking stronger across the board and deal-flow is expected to increase on 2012, we anticipate that there will be an uplift in hiring activity later in the year.

Astbury Marsden Salary Benchmarking 2013: Front Office

20

Investment Banking

Permanent

Job TitleBase Min

(£)Base Max

(£)Bonus Min

(£)Bonus Max

(£)

Bonus Average

(£)

Corporate Finance

Analyst 1 37,500 47,500 0 47,500 25,000

Analyst 2 40,000 57,500 0 57,500 30,000

Analyst 3 50,000 65,000 0 65,000 35,000

Associate 1 60,000 75,000 0 75,000 45,000

Associate 2 70,000 90,000 0 90,000 55,000

Associate 3 80,000 100,000 0 100,000 60,000

VP 1 85,000 120,000 0 80,000 70,000

VP 2 90,000 130,000 0 95,000 75,000

VP 3 95,000 160,000 0 95,000 85,000

Director 1 100,000 200,000 0 350,000 100,000

“Whilst there will always be some individuals who will seek a move to a better regarded bank to improve their CV, a lateral move to a direct competitor is going to be highly unlikely”


Base Max(£)

Bonus Min (£)

Bonus Max (£)

Quantitative (Developer, Analyst or Trader)

Associate 55,000 65,000 0 15,000

AVP 75,000 85,000 0 50,000

VP 95,000 140,000 0 150,000

Director 150,000 200,000 0 250,000

Operations & Middle Office

Astbury Marsden Salary Benchmarking 2013: Operations & Middle Office

22

Review of 2012

Hiring across the Operations space remained tepid throughout 2012, with no significant expansion or aggressive hiring. Scrutiny of headcount and replacement hiring was high and internal mobility remained the preference as opposed to external hiring .

Departments that did see increases in headcount were largely related to Equity Derivatives Support and OTC Clearing roles at line level. A number of employers were looking to gain the competitive edge, around their clearing infrastructure and recruitment was relatively brisk.

Some banks were recruiting permanent positions into the Fixed Income space and the FX back and middle office functions to bolster Settlements, Confirmations, Investigations and Documentation teams. There remained a requirement in London for specialised subject matter experts in vanilla products due to the amount of off-shoring. Professionals with ETD Clearing and OTC experience were in demand due to the Dodd-Frank Act. There was also a drive in Asset Servicing roles, due to seasonal corporate actions activity.

Operations & Middle Office

“Professionals with ETD Clearing and OTC experience

were in demand due to the Dodd-Frank Act”

Outlook for 2013

Regulatory change is driving change across all investment banks and the Operations function is dealing with these upstream changes. However this is not leading to abnormal hiring patterns. Given that many regulatory changes are still being debated and are not yet enacted, we are experiencing more of a ‘wait and see’ approach as to what change to process and documentation is required. Throughout 2013 this is where we expect to see the strongest demand for hiring; that is, within change and projects focussed on regulatory compliance.

From a global perspective, Asia was dominated by medium and low cost centres and we continue to see Analyst and Associate level roles moving to locations such as Mumbai, Chennai and Manila. Medium cost locations such as Singapore and Hong Kong are becoming more SME focussed with key hiring focussed at the more Senior Vice President and Executive Director levels. For London, near-shoring is a key location strategy, with operations headcount increasingly moving out of London to regional offices. This has also led to local shortages, meaning increased competition and firms looking to move //talent from high cost locations.

We are also seeing clients begin to take a complete strategic review of how Operational processes are delivered. This could lead to entire operations departments being outsourced – as has been the strategy across several asset managers. This could in turn, lead to a growth in the demand for hires within Security Services and Custodian Banks.

Astbury Marsden Salary Benchmarking 2013: Operations & Middle Office

23

Investment BankingPermanent


Base Max(£)

Bonus Min (£)

Bonus Max (£)

Settlements

Analyst 30,000 45,000 0 4,000

AVP 45,000 60,000 4,000 6,000

VP 60,000 75,000 5,000 8,000

Director 80,000 120,000 10,000 50,000

Operations Control

Analyst 35,000 50,000 0 5,000

AVP 50,000 65,000 0 8,000

VP 70,000 90,000 0 15,000

Director 90,000 120,000 20,000 40,000

Corporate Actions

Analyst 30,000 50,000 3,000 5,000

AVP 55,000 65,000 5,000 8,000

VP 70,000 85,000 5,000 10,000

Director 90,000 120,000 10,000 25,000


Base Max(£)

Bonus Min (£)

Bonus Max (£)

Client Services

Analyst 30,000 50,000 3,000 5,000

AVP 55,000 65,000 5,000 8,000

VP 70,000 85,000 5,000 10,000

Director 90,000 120,000 10,000 25,000

Documentation

Analyst 32,000 50,000 0 5,000

AVP 55,000 70,000 0 10,000

VP 70,000 90,000 0 15,000

Director 90,000 110,000 10,000 35,000

Trade Support

Analyst 35,000 55,000 5,000 10,000

AVP 55,000 70,000 5,000 12,000

VP 75,000 95,000 10,000 20,000

Director 90,000 120,000 10,000 60,000

Astbury Marsden Salary Benchmarking 2013: Risk

25

Strategy ConsultingOverview

Review of 2012

Recruitment of risk professionals fell in 2012. We saw hiring remain steady throughout quarters one to three, dipping significantly in quarter four. Banks continued to review and improve Risk Management functions, however the focus was on hiring skills to cover regulatory driven initiatives or on replacement hires as opposed to positions arising from growth.

Market Risk and Credit Risk remained in demand throughout the year as our investment banking clients looked to improve their risk reporting capabilities. Most banks looked for candidates with quantitative backgrounds to be involved in a higher level of credit and market risk analysis and reporting. 2012 saw a distinct move from “slice and dice” reporting to a distinctly more quantitative level of analytical reporting giving Risk Officers an improved view of risk positions.

Regulatory initiatives also drove demand for credit and market risk professionals in the Business Analyst space as banks continued to consolidate and re-engineer processes and systems in line with regulations such as Basel III and CRD4. This opened up a number of AVP/VP Business Analyst and Project Management positions. We saw fewer contract opportunities in this space than in previous years as banks shifted towards bringing in permanent employees.

Vacancies took a lot longer to fill in 2012 as the banks

Risklooked for the ‘complete package’ from their Risk Managers. This resulted in a number of first round, interviews as clients were open to meeting a variety of candidates before making any hiring decisions. More than ever, clients would not sacrifice on any of their requirements and were consistently demanding the best hires.

Operational Risk, Controls and Governance remained key areas of recruitment across all of financial services. In particular, Business Managers in risk sitting in the front office, local Risk Managers and Analysts in Operational Risk Reporting were in highdemand. Strong technical skills proved essential, though more than ever; there was a clear focus on the softer skills. Strong communication, influencing and stakeholder skills proved invaluable as Risk Managers became more high profile with increased exposure to senior stakeholders across the business.

The last quarter of the year slowed down significantly across all areas of risk. We saw the lowest number of vacancies registered in four years and found interview processes that were well underway slow to a halt. In contrast, the number of candidates registering their details doubled from last year – partly due to redundancies or concern over potentially being made redundant. In addition, many candidates were looking to move out of investment banking into smaller, niche firms.

Investment management and private banking saw a rise in vacancies . Candidates making the move were

tempted by smaller firms with what was perceived as clearer career trajectory, more stability and better work life balance. These factors provided a clear motivation to move away from the more traditional incentives of big salaries and bonuses at the investment banks.

Outlook for 2013

We expect 2013 to look similar to 2012 with steady levels of recruitment across isk management in financial services. The focus will continue to be in regulatory and reporting, especially in Credit Risk and Market Risk in order to manage the demands coming out of Basel III and improve reporting processes. The risk recruitment market will rely heavily on the market and we expect low but steady growth .

Risk Management remains in the spotlight and so whilst we expect all areas to be hiring, the shape of the recruitment process will change significantly. We expect longer and more challenging interview processes as the candidate wish list grows.

Unfortunately we do not expect compensation to grow in line with this demand as the market has to withstand an ever increasing focus on cost, and roles will need to be well justified.


26

Contract


Intermediate (£pd)

Expert (£ pd)

Market Risk

Analyst 200 275 350




Quantitative Risk

Analyst 350 500 700


Credit Risk

Analyst 200 300 350




Data

Analyst 300 400 500

Basel III



Investment Banking


27

Investment Banking

Permanent


Base Max(£)

Bonus Min (£)

Bonus Max (£)

Market Risk

Analyst 40,000 55,000 0 16,000

AVP 50,000 70,000 0 28,000

VP 70,000 100,000 0 50,000

Director 75,000 180,000 0 115,000

Quantitative Risk

Analyst 35,000 55,000 0 27,500

AVP 50,000 70,000 0 35,000

VP 70,000 100,000 0 57,000

Director 100,000 180,000 0 115,000

Operational Risk

Analyst 35,000 48,000 0 19,200

AVP 48,000 65,000 0 26,000

VP 65,000 95,000 0 42,000

Director 85,000 170,000 0 100,000

Credit Risk

Analyst 40,000 50,000 0 20,000

AVP 45,000 65,000 0 28,000

VP 70,000 90,000 0 50,000

Director 75,000 150,000 0 110,000


28


Contract


Intermediate (£pd)

Expert (£ pd)

Market Risk

Analyst 200 275 350




Quantitative Risk

Analyst 400 550 700

Credit Risk

Analyst 200 275 350




Data

Analyst 300 400 500



29


Permanent


Base Max(£)

Bonus Min (£)

Bonus Max (£)

Market Risk

Analyst 40,000 55,000 0 16,000

AVP 50,000 70,000 0 28,000

VP 70,000 100,000 0 50,000

Director 75,000 140,000 0 90,000

Quantitative Risk

Analyst 40,000 55,000 0 27,500

AVP 50,000 70,000 0 35,000

VP 70,000 95,500 0 57,000

Director 100,000 150,000 0 105,000

Operational Risk

Analyst 40,000 48,000 0 19,200

AVP 48,000 65,000 0 26,000

VP 65,000 90,000 0 42,000

Director 85,000 130,000 0 75,000

Credit Risk

Analyst 40,000 50,000 0 20,000

AVP 45,000 65,000 0 26,000

VP 70,000 90,000 0 50,000

Director 75,000 130,000 0 90,000


Technology

Astbury Marsden Salary Benchmarking 2013: Technology

31

Strategy ConsultingOverviewTechnologyReview of 2012

In the first quarter of 2012, we saw headcount and rate reductions for contractors. The overall message was to reduce operating costs and therefore shrink spend on temporary staff. Post Q1, we saw a flurry of hiring for regulatory projects, driven by increasing legal requirements such as Dodd Frank.

On the permanent side, we saw salaries grow marginally as bonuses were cut across all industries. There was much greater emphasis on fixed compensation as banks looked to reduce the focus on a bonus culture.

In stark contrast to the banks, hedge funds and proprietary trading firms maintained an emphasis on bonuses. Lower salaries were offset by a higher bonus which was paid based directly on business profits.

The majority of hiring in 2012 was for replacement hires with little investment in new headcount. Most exceptions to this were across risk, regulatory and compliance. These functions were in good demand during 2012.

Outlook for 2013

2013 is going to play a key part in defining what the market will be like for 2014 - 2016 as many banks continue to react to the financial crisis of previous years.

We expect to see small pockets of replacement hiring in order to fulfil business requirements. The majority of additional hires will be regulatory driven. We anticipate increased hiring in the investment management space as candidates choose to risk accepting a lower base and a much higher bonus potential.

The financial software houses are not hugely affected by the financial crisis and we expect to see them hiring significantly this year.

Bonuses will continue to be few and far between with the majority of bonus pools being reserved for highly skilled individuals who have both business knowledge and exceptional technical skills.

There will be intense competition for the top 20% of talent, now more so than ever, despite solid performers struggling to find work. Only the top talent are being hired. Consequently, candidates are staying loyal to their firm despite not receiving any salary increases or bonuses as they believe the situation will not be any better elsewhere.

C++ specialists are likely to see growing salaries over the year. Only the top universities teach this language, making it more of a niche skillset amongst junior developers or people coming into the industry.

Some banks which previously recruited only permanent staff have moved to purely contractor staffing. It will be interesting to see if there will be a move back to purely permanent hiring or if this is a long-lasting trend.


32

Contract


Intermediate (£pd)

Expert (£ pd)

Development

Java/Database - Front Office 500 525 550

Java/Database - Middle/Back Office 450 500 525

Java Messaging Developer 450 500 525

Java GUI/SWING 450 500 525

VBA Developer - Middle/Back Office 425 475 525

Excel/Access VBA RAD - Front Office 450 500 550

C++/NT/COM/DCOM - Front Office 450 500 550

C++/NT/COM/DCOM - Middle/Back Office 425 475 525

Quantitative Developer 550 600 650

C++/Unix Developer 450 500 525

C#/.NET/Winforms - Front Office 450 500 550

C#/.NET/Winforms - Middle/Back Office 400 450 500

Databases (DBA/Dev)

Sybase DBA 450 475 525

Oracle DBA 450 475 525

SQL-Server DBA 450 475 525

Oracle Developer 400 450 500

Sybase Developer 400 450 500

SQL Developer 400 450 500



33

Contract

Job Title Basic(£ pd)

Intermediate(£ pd)

Expert(£ pd)

Support

Voice Support 280 350 500

Trade Floor Support 220 275 350

Desktop Support 220 250 300

Web Systems Engineer 330 385 440

Application Packaging Engineer 330 385 440

Web Packaging Engineer 350 400 475

Citrix Support 350 400 500

Exchange Connectivity 400 500 650

Openlink 500 600 700

Front Office Applications Support 450 500 550

Back Office Applications Support 400 450 500

Support Manager 475 500 550

Market Data Services

Technical Support Engineers (Market Data Ser.) 350 500 600

Market Data Analyst/Administrator 330 400 475

Operations

Unix/Netcool/Tivoli Operator 385 440 495

Datacentre Operations Analyst 225 250 275



34

Contract


Intermediate (£ pd)

Expert (£ pd)

Networks

Network Support Engineer 350 450 500

Network Implementation Engineer 385 440 495

Firewall Engineer 400 450 550

Calypso

Implementation (Calypso) 550 650 750

Development (Calypso) 550 650 750

Support (Calypso) 500 575 650

Murex

Implementation (Murex) 550 650 750

Development (Murex) 550 650 750

Support (Murex) 500 575 650

Summit

Implementation (Summit) 550 650 750

Development (Summit) 550 650 750

Support (Summit) 500 575 650

Storage

Storage Manager 450 475 525

Storage Specialist (TSM, EMC) 415 470 600

Storage - Support Engineer 415 470 550



35

Contract

Job Title Basic (£ pd)


Expert(£ pd)

Testing

Test Manager 550 605 660

Test Team Lead 495 550 605

Test Analyst 385 440 495

Project/Development Managers


Strategic Development Manager 580 635 690

Tactical Development Manager 585 640 695

PMO Manager 500 550 600

Project Manager (with Front Office product knowledge) 660 715 770

Project Manager (with Middle/Back Office knowledge) 605 660 715

Project Manager (with no specific product knowledge) 550 605 660

Outsource Project Manager 550 625 700

Infrastructure Project Manager 500 600 650

Project Administrator/Co-ordinator 300 400 450

Messaging Analyst (Swift, Crest)

Messaging Technical Support Analyst 330 385 440

Messaging Analyst 330 385 440



36

Permanent


Base Max (£)

Bonus Min (£)

Bonus Max (£)

Development

Java/Database - Front Office 65,000 125,000 0 Uncapped

Java/Database - Middle/Back Office 45,000 85,000 0 25,000

Java Messaging Developer 60,000 85,000 0 50,000

Java GUI/SWING/Flex 55,000 90,000 0 45,000

VBA Developer - Middle/Back Office 40,000 70,000 0 7,000

Excel/Access VBA RAD - Front Office 50,000 95,000 0 15,000

C++/NT/COM/DCOM - Front Office 65,000 125,000 0 40,000

C++/NT/COM/DCOM - Middle/Back Office 45,000 85,000 0 15,000

Quantitative Developer 70,000 140,000 0 42,000

C++/Unix Developer 55,000 140,000 0 42,000

C#/.NET/Winforms - Front Office 65,000 125,000 0 20,000

C#/.NET/Winforms - Middle/Back Office 45,000 85,000 0 7,500

Python/Scala and OOA/D Languages 65,000 110,000 0 Uncapped

Databases (DBA/Dev)

Sybase DBA 45,000 105,000 0 15,000

Oracle DBA 45,000 105,000 0 15,000

SQL-Server DBA 45,000 105,000 0 15,000

Oracle Developer 45,000 105,000 0 15,000

Sybase Developer 45,000 105,000 0 15,000

SQL Developer 45,000 105,000 0 15,000



37

Permanent

Job Title Base Min(£)

Base Max(£)

Bonus Min(£)

Bonus Max(£)

Systems Administrators/Engineers

SUN Solaris 44,000 100,000 0 25,000

HP-UX 44,000 100,000 0 25,000

AIX 44,000 100,000 0 25,000

Microsoft Windows 44,000 100,000 0 25,000

LINUX 44,000 100,000 0 25,000

Business Analysts/Project Manager

Junior BA/PM’s 30,000 45,000 0 13,000

Mid level BA/PM’s 45,000 70,000 0 18,000

Senior BA/PM’s 70,000 100,000 0 25,000

Technology Risk Management (TRM)

Problem/Change Manager 55,000 100,000 0 20,000

TISO 55,000 90,000 0 20,000

Global Incident Response Analyst 45,,000 85,000 0 15,000

General IT Security/Network Security Engineer 50,000 90,000 0 15,000

Security Policy & Risk Management 50,000 100,000 0 20,000

Security Project/Programme Manager 55,000 100,000 0 15,000



38

Permanent


Base Max (£)

Bonus Min (£)

Bonus Max(£)

Support

Voice Support 40,000 80,000 3,000 18,000

Trade Floor Support 45,000 90,000 3,000 18,000

Desktop Support 35,000 70,000 0 17,500

Web Systems Engineer 45,000 85,000 0 21,500

Web Packaging Engineer 45,000 85,000 0 21,500

Citrix Support 30,000 80,000 0 18,000

Systems Support Analyst 44,000 85,000 0 21,500

Exchange Connectivity 44,000 90,000 5,000 20,000

Openlink 50,000 100,000 8,000 25,000

Front Office Applications Support 45,000 100,000 5,000 20,000

Back Office Applications Support 40,000 75,000 0 18,500

Support Manager 65,000 125,000 8,000 30,000


Technical Support Engineers (Market Data Ser.) 40,000 90,000 0 22,500

Market Data Analyst/Administrator 45,000 90,000 0 22,500



39

Permanent


Base Max (£)

Bonus Min (£)

Bonus Max (£)

Networks

Network Support Engineer 45,000 85,000 0 21,500

Network Implementation Engineer 45,000 85,000 0 21,500

Firewall Engineer 45,000 90,000 0 22,500

Testing

Test Manager 55,000 100,000 0 15,000

Test Team Lead 55,000 100,000 0 15,000

Test Analyst 45,000 70,000 0 10,000


Strategic Development Manager 85,000 120,000 0 30,000

Tactical Development Manager 85,000 120,000 0 30,000



40

Investment Banking

Contract


Intermediate (£pd)

Expert (£ pd)

Development













Databases (DBA/Dev)








41

Investment Banking

Contract



Expert (£ pd)


SUN Solaris 350 450 600

HP-UX 350 450 600

AIX 350 450 600

Microsoft Windows 350 450 600

LINUX 350 450 600

Business Analysts

Non Technical Front Office 500 575 650

Non Technical Middle/Back Office 450 525 600

Technical with Front Office 500 600 650

Technical with Middle/Back Office 450 550 600

Tester/Business Analyst 450 500 550


Problem/Change Manager 550 620 660

TISO Global Incident Response Analyst 500 550 600

Global Incident Response Analyst 450 500 550

General IT Security/Network Security Engineer 350 400 475

Security Policy & Risk Management 375 440 495

Security Project/Programme Manager 500 550 605


42

Investment Banking

Contract


Intermediate(£ pd)

Expert(£ pd)

Support








Systems Support Analyst 400 450 500









Operations




43

Investment Banking

Contract



Expert (£ pd)

Networks




Calypso

Implementation (Calypso) 500 650 700

Development (Calypso) 500 650 650

Support (Calypso) 450 525 600

Murex

Implementation (Murex) 550 650 750

Development (Murex) 550 650 700

Support (Murex) 500 550 600

ION Marketview

Implementation (ION Marketview) 550 650 750

Development (ION Marketview) 550 650 700

Support (ION Marketview) 500 575 650

Storage





44

Investment Banking

Contract



Expert(£ pd)

Testing




Development Managers






Infrastructure Project Manager 450 500 650

Project Administrator/Co-ordinator 300 400 450





45

Investment Banking

Permanent


Base Max (£)

Bonus Min (£)

Bonus Max (£)

Development

Java/Database - Front Office 65,000 125,000 0 50,000



Java GUI/SWING/Flex 55,000 110,000 0 45,000






C++/Unix Developer 55,000 120,000 0 25,000



Python/Scala and OOA/D Languages 65,000 125,000 0 60,000

Databases (DBA/Dev)

Sybase DBA 48,000 90,000 0 10,000

Oracle DBA 48,000 85,000 0 10,000

SQL-Server DBA 48,000 85,000 0 10,000



SQL Developer 48,000 75,000 0 10,000


46

Investment Banking

Permanent


Base Max(£)

Bonus Min(£)

Bonus Max(£)


SUN Solaris 44,000 110,000 0 15,000

HP-UX 44,000 110,000 0 15,000

AIX 44,000 110,000 0 15,000


LINUX 44,000 110,000 0 15,000

Business Analysts/Project Managers

Junior BA/PM’s 40,000 55,000 0 15,000

Mid level BA/PM’s 55,000 85,000 0 25,000

Senior BA/PM’s 85,000 120,000 0 35,000



Global Incident Response Analyst 50,000 80,000 0 10,000





47

Investment Banking

Permanent


Base Max (£)

Bonus Min (£)

Bonus Max(£)

Support

Voice Support 44,000 75,000 3,000 15,000


Desktop Support 28,000 55,000 3,000 11,000

Web Systems Engineer 45,000 75,000 3,000 15,000

Application Packaging Engineer 45,000 75,000 3,000 15,000

Web Packaging Engineer 45,000 75,000 3,000 15,000

Citrix Support 38,500 65,000 3,000 13,000

Systems Support Analyst 44,000 70,000 3,000 14,000


Openlink 50,000 85,000 8,000 19,000


Back Office Applications Support 40,000 60,000 3,000 12,000

Support Manager 65,000 100,000 8,000 20,000


Technical Support Engineers (Market Data Ser.) 45,000 90,000 3,000 15,000

Market Data Analyst/Administrator 45,000 70,000 3,000 14,000

Networks

Network Support Engineer 28,000 60,000 3,000 15,000

Network Implementation Engineer 45,000 80,000 3,000 15,000

Firewall Engineer 45,000 90,000 3,000 15,000


48

Investment Banking

Permanent


Base Max(£)

Bonus Min (£)

Bonus Max (£)

Testing

Test Manager 60,000 105,000 0 10,000

Test Team Lead 60,000 110,000 0 10,000

Test Analyst 40,000 65,000 0 10,000


Programme Manager 70,000 150,000 0 70,000



PMO Manager 70,000 100,000 0 10,000

Outsource Project Manager 75,000 95,000 0 20,000

Infrastructure Project Manager 50,000 90,000 0 15,000

Project Administrator/Co-ordinator 40,000 75,000 0 15,000


Messaging Technical Support Analyst 40,000 55,000 0 5,000

Messaging Analyst 40,000 55,000 0 5,000


49


Contract


Intermediate (£pd)

Expert (£ pd)

Development













Databases (DBA/Dev)









50


Contract



Expert (£ pd)


SUN Solaris 350 400 500

HP-UX 350 400 500

AIX 350 400 500

Microsoft Windows 350 400 500

LINUX 350 400 500

Business Analysts

Non Technical Front Office 500 575 650

Non Technical Middle/Back Office 450 525 600

Non Technical (no specific product knowledge) 400 500 600

Technical with Front Office 550 600 650

Technical with Middle/Back Office 500 550 600

Technical (no specific product knowledge) 450 500 550

Tester/Business Analyst 400 500 550



51


Contract


Intermediate(£ pd)

Expert(£ pd)

Support








Systems Support Analyst 325 350 400









Operations





52


Contract



Expert (£ pd)

Networks




Third Party Applications (e.g. Charles River, CADIS, thinkFolio)

Implementation 550 650 750

Development 550 650 750

Support 500 575 650

Storage






53


Contract



Expert(£ pd)

Testing









Project Manager (with Front Office product knowledge) 600 700 750

Project Manager (with Middle/Back Office knowledge) 605 660 715

Project Manager (with no specific product knowledge) 550 600 650







54


Permanent


Base Max (£)

Bonus Min (£)

Bonus Max (£)

Development

Java/Database - Front Office 60,000 100,000 0 50,000



Java GUI/SWING 55,000 110,000 0 55,000






C++/Unix Developer 60,000 100,000 0 100,000



Python/Scala and OOA/D Languages 65,000 100,000 0 50,000

Databases (DBA/Dev)

Sybase DBA 45,000 85,000 0 8,500

Oracle DBA 45,000 85,000 0 8,500

SQL-Server DBA 45,000 85,000 0 8,500



SQL Developer 45,000 85,000 0 8,500


Please note that the bonuses in hedge funds are generally uncapped, however we have provided an average upper limit to give greater insight .


55


Permanent


Base Max(£)

Bonus Min(£)

Bonus Max(£)


SUN Solaris 44,000 85,000 0 11,500

HP-UX 44,000 85,000 0 11,500

AIX 44,000 85,000 0 11,500


LINUX 44,000 85,000 0 11,500

Business Analysts/Project Managers

Junior BA/PM’s 30,000 45,000 0 13,000

Mid level BA/PM’s 45,000 70,000 0 18,000

Senior BA/PM’s 70,000 100,000 0 25,000



Global Incident Response Analyst 45,000 80,000 0 15,000






56


Permanent


Base Max (£)

Bonus Min (£)

Bonus Max(£)

Support

Voice Support 30,000 60,000 3,000 11,500


Desktop Support 30,000 55,000 3,000 8,500

Web Systems Engineer 40,000 70,000 3,000 11,500

Application Packaging Engineer 40,000 70,000 3,000 11,500

Web Packaging Engineer 40,000 70,000 3,000 11,500

Citrix Support 35,000 65,000 3,000 10,500

Systems Support Analyst 40,000 70,000 3,000 11,000


Openlink 50,000 85,000 8,000 12,500


Back Office Applications Support 40,000 60,000 3,000 9,000

Support Manager 65,000 100,000 8,000 15,000

Networks

Network Support Engineer 40,000 70,000 3,000 11,000



57


Permanent


Base Max(£)

Bonus Min (£)

Bonus Max (£)

Testing

Test Manager 65,000 105,000 0 10,500

Test Team Lead 55,000 90,000 0 9,000

Test Analyst 45,000 77,000 0 9,000


Programme Manager 85,000 120,000 0 24,000



PMO Manager 75,000 95,000 0 19,000

Outsource Project Manager 75,000 95,000 0 19,000

Infrastructure Project Manager 50,000 95,000 0 19,000

Project Administrator/Co-ordinator 43,000 55,000 0 11,000


Messaging Technical Support Analyst 43,000 55,000 0 5,500

Messaging Analyst 43,000 55,000 0 5,500


58

Astbury Marsden is an international recruitment firm focussed on banking, financial services and management consulting.

Our success is based on acquiring a special understanding of the markets in which we operate. We take this in its broadest sense, encompassing understanding and empathy with our clients and candidates, and also a broad knowledge of the working environment.

We are always adding to that knowledge and experience; in the process we are building up a unique picture of all the components of the working lives of our clients and candidates and their world .

The result is that we are more successful at attracting talent, and better able to recognise opportunities for clients.

Ours is a dual customer focus. A shared agenda if you like.

The duality of the client-candidate relationship makes recruitment in the mid to senior-level world of international finance, consulting and strategy more human than one might otherwise think .

It demands more than an appreciation of the skills or experience required to fulfil a role. It is quite unlike the volume recruitment business, which is widely held to be something of a numbers game. We look beyond the idea of recruitment for a post, thinking about how individuals could develop in a role or a team, fulfilling the longer-term needs of the business and the career goals of the individual.

To achieve the necessary understanding, some of our people are drawn from the industries to which we recruit, others have made those industries their particular focus. Our expansion into the Far East adds an international perspective to our work and serves to broaden the outlook and experience of our teams.

Keeping to a particular field means, over time, we have acquired a depth of knowledge and experience, to create a unique understanding of our markets, of the people in them, and ‘the life’ they lead. To find out more, visit www.astburymarsden.com

London

Jonathan Nicholson60 New Broad Street, London EC2M 1JJ+44 (0)20 7065 [email protected]

Hong Kong

Paul Evans2502, OVEST, 77 Wing Lok St, Sheung Wan, Hong Kong+852 3971 [email protected]

Singapore

Mark O’ReillySingapore Land Tower, 37th Floor50 Raffles Place, Singapore 048623+65 6829 [email protected]

Strategy ConsultingOverviewAbout Astbury Marsden

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