Report 006 Salary Benchmarking: Banking & Financial Services. Life Working Series 2013

Transcription

1 Report 006 Salary Benchmarking: Banking & Financial Services Life Working Series 2013

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3 Contents Market Outlook Change & Transformation Overview Financial Intermediaries Contract Permanent Investment Banking Contract Permanent Investment Management Contract Permanent Finance Overview Financial Intermediaries Contract Permanent Investment Banking Contract Permanent Investment Management Contract Permanent Front Office Overview Investment Banking Permanent Operations & Middle Office Overview Investment Banking Permanent Risk Overview Investment Banking Contract Permanent Investment Management Contract Permanent Technology Overview Financial Intermediaries Contract Permanent Investment Banking Contract Permanent Investment Management Contract Permanent About Astbury Marsden

4 Market Outlook 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 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) mark.cameron@astburymarsden.com 4

5 Change & Transformation

6 Astbury Marsden Salary Benchmarking 2013: Change & Transformation Change & Transformation Review of 2012 There was a feeling of optimism for change and transformation professionals going into 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 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. 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. Risk & Control and Conduct Risk are also key areas in the market which will lead to new frameworks 6

7 Astbury Marsden Salary Benchmarking 2013: Change & Transformation Financial Intermediaries Financial intermediaries includes financial exchanges, brokers, clearing houses, rating agencies, software and data providers. Contract Basic ( pd) Intermediate ( pd) Process Analyst Business Analyst Lead Business Analyst PMO Change Manager Architect Project Manager Programme Manager Expert Permanent Base Min Base Max Bonus Min Bonus Max PMO (Analyst - Director) 40, , ,000 Project/Programme Manager 60, , ,000 Subject Matter Expert 60,000 75, ,000 Subject Matter Expert/Business Analyst 55,000 80, ,000 Business Analyst 40,000 60, ,000 Lead Business Analyst 55,000 80, ,000 7

8 Astbury Marsden Salary Benchmarking 2013: Change & Transformation Investment Banking Contract Basic ( pd) Intermediate ( pd) Process Analyst Business Analyst Lead Business Analyst PMO Change Manager Architect Project Manager Programme Manager Expert Permanent Base Min Base Max Bonus Min Bonus Max PMO (Analyst - Director) 50, , ,000 Project/Programme Manager 75, , ,000 Subject Matter Expert 60,000 75, ,000 Subject Matter Expert/Business Analyst 65,000 90, ,000 Business Analyst 50,000 70, ,000 Lead Business Analyst 65,000 90, ,000 8

9 Astbury Marsden Salary Benchmarking 2013: Change & Transformation Investment Management Investment management includes wealth management, asset management, investment management, pension and hedge funds. Contract Basic ( pd) Intermediate ( pd) Process Analyst Business Analyst Lead Business Analyst PMO Change Manager Architect Project Manager Programme Manager Expert Permanent Base Min Base Max Bonus Min Bonus Max Project Manager Assistant 30,000 40, ,000 PMO (Analyst Director) 50, , ,000 Project/Programme Manager 75, ,000 10,000 50,000 Subject Matter Expert 60,000 75, ,000 Subject Matter Expert/Business Analyst 55,000 80, ,000 Business Analyst 40,000 60, ,000 Lead Business Analyst 55,000 75, ,000 9

10 Finance

11 Astbury Marsden Salary Benchmarking 2013: Finance Finance 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. 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. We are experiencing an on going spotlight on complying with the raft of new regulation ranging from Basel III to FATCA 11

12 Astbury Marsden Salary Benchmarking 2013: Finance Financial Intermediaries Financial intermediaries includes financial exchanges, brokers, clearing houses, rating agencies, software and data providers. Contract Basic ( pd) Intermediate ( pd) Financial Analyst Cost Accounting Controller Regulatory Reporting Officer Statutory Accountant Balance Sheet Control Analyst Financial Controller Reconciliation Analyst Balance Sheet Control Analyst Finance Business Partner Finance Business Analyst Finance Project Manager Finance PMO Fund Accountant Product Controller Expert 12

13 Astbury Marsden Salary Benchmarking 2013: Finance Financial Intermediaries Financial intermediaries includes financial exchanges, brokers, clearing houses, rating agencies, software and data providers. Permanent Base Min Base Max Bonus Min Bonus Max Management Accountant 0-1 Years PQE 50,000 60, , Years PQE 55,000 65, , Years PQE 65,000 80, , Years PQE 75, , ,000 Financial Accountant 0-2 Years PQE 50,000 60, , Years PQE 55,000 80, , Years PQE 70, , ,000 Fund Accountant 0-1 Years PQE 45,000 55, , Years PQE 45,000 65, , Years PQE 55,000 90, ,000 Finance Director/Chief Finance Officer 8+ Years PQE 90, , ,000,

14 Astbury Marsden Salary Benchmarking 2013: Finance Investment Banking Contract Basic ( pd) Intermediate ( pd) Financial Analyst Cost Accounting Controller Regulatory Reporting Officer Statutory Accountant Balance Sheet Control Analyst Financial Controller Reconciliation Analyst Balance Sheet Control Analyst Finance Business Partner Business Analyst Project Manager PMO Product Controller (flow and cash) Expert Product Controller (exotics and hybrids)

15 Astbury Marsden Salary Benchmarking 2013: Finance Investment Banking Permanent Base Min Base Max Bonus Min Bonus Max Financial Accounting Associate 45,000 65, ,000 AVP 58,000 80, ,000 VP 75, ,000 5,000 20,000 Director 100, ,000 10,000 60,000 Accounting Policy/Technical Accounting Associate 50,000 65, ,000 AVP 58,000 80, ,000 VP 75, ,000 5,000 20,000 Director 100, ,000 10,000 60,000 Regulatory Reporting Associate 40,000 60, ,000 AVP 55,000 75, ,000 VP 75, ,000 5,000 20,000 Director 100, ,000 10,000 60,000 Base Min Base Max Bonus Min Bonus Max Management Information/Financial Analysis Associate 45,000 65, ,000 AVP 58,000 80, ,000 VP 75, ,000 5,000 20,000 Director 100, ,000 10,000 60,000 Product Control (flow and cash) Associate 50,000 65, ,000 AVP 65,000 80, ,000 VP 75, ,000 5,000 20,000 Director 100, ,000 10,000 60,000 Product Control (exotics and hybrids) Associate 50,000 70, ,000 AVP 65,000 85, ,000 VP 85, ,000 5,000 20,000 Director 105, ,000 10,000 60,000 15

16 Astbury Marsden Salary Benchmarking 2013: Finance Investment Management Investment management includes wealth management, asset management, investment management, pension and hedge funds. Contract Basic ( pd) Intermediate ( pd) Financial Analyst Cost Accounting Controller Regulatory Reporting Officer Statutory Accountant Balance Sheet Control Analyst Financial Controller Reconciliation Analyst Balance Sheet Control Analyst Finance Business Partner Finance Business Analyst Finance Project Manager Finance PMO Fund Accountant Product Controller Expert ( pd) 16

17 Astbury Marsden Salary Benchmarking 2013: Finance Investment Management Investment management includes wealth management, asset management, investment management, pension and hedge funds. Permanent Base Min Base Max Bonus Min Bonus Max Management Accountant Part Qualified 25,000 40, , Years PQE 45,000 60, , Years PQE 50,000 65, , Years PQE 60,000 85, , Years PQE 75, , ,000 Financial Accountant Part Qualified 20,000 35, , Years PQE 45,000 60, , Years PQE 55,000 80, , Years PQE 70, , ,000 Fund Accountant Part Qualified 25,000 45, , Years PQE 45,000 55, , Years PQE 45,000 65, , Years PQE 55,000 90, ,000 Base Min Hedge Fund Product Control Base Max Bonus Min Bonus Max Part Qualified 25,000 45, , Years PQE 45,000 65, , Years PQE 60,000 95, , Years PQE 85, , ,000 Finance Director/Chief Finance Officer 8+ Years PQE 90, , ,000,

18 Front Office

19 Astbury Marsden Salary Benchmarking 2013: Front Office Front Office 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 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 with 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 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 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. 19

20 Astbury Marsden Salary Benchmarking 2013: Front Office Investment Banking Permanent Base Min Base Max Bonus Min Bonus Max Bonus Average Corporate Finance Analyst 1 37,500 47, ,500 25,000 Analyst 2 40,000 57, ,500 30,000 Analyst 3 50,000 65, ,000 35,000 Associate 1 60,000 75, ,000 45,000 Associate 2 70,000 90, ,000 55,000 Associate 3 80, , ,000 60,000 VP 1 85, , ,000 70,000 VP 2 90, , ,000 75,000 VP 3 95, , ,000 85,000 Director 1 100, , , ,000 Base Min Base Max Bonus Min Bonus Max Quantitative (Developer, Analyst or Trader) Associate 55,000 65, ,000 AVP 75,000 85, ,000 VP 95, , ,000 Director 150, , ,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 20

21 Operations & Middle Office

22 Astbury Marsden Salary Benchmarking 2013: Operations & Middle Office Operations & Middle Office 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. 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. Professionals with ETD Clearing and OTC experience were in demand due to the Dodd-Frank Act 22

23 Astbury Marsden Salary Benchmarking 2013: Operations & Middle Office Investment Banking Permanent Base Min Base Max Bonus Min Bonus Max Settlements Analyst 30,000 45, ,000 AVP 45,000 60,000 4,000 6,000 VP 60,000 75,000 5,000 8,000 Director 80, ,000 10,000 50,000 Operations Control Analyst 35,000 50, ,000 AVP 50,000 65, ,000 VP 70,000 90, ,000 Director 90, ,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 10,000 25,000 Base Min 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 10,000 25,000 Documentation Analyst 32,000 50, ,000 AVP 55,000 70, ,000 VP 70,000 90, ,000 Director 90, ,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 10,000 60,000 23

24 Risk

25 Astbury Marsden Salary Benchmarking 2013: Risk Risk Overview Strategy Consulting Review of 2012 Recruitment of risk professionals fell in 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 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 reengineer 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 looked 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 high demand. 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. 25

26 Astbury Marsden Salary Benchmarking 2013: Risk Investment Banking Contract Basic ( pd) Intermediate ( pd) Expert Market Risk Analyst Business Analyst Project Manager Programme Manager Quantitative Risk Analyst Business Analyst Credit Risk Analyst Business Analyst Project Manager Programme Manager Data Analyst Basel III Business Analyst Project Manager

27 Astbury Marsden Salary Benchmarking 2013: Risk Investment Banking Permanent Base Min Base Max Bonus Min Bonus Max Market Risk Analyst 40,000 55, ,000 AVP 50,000 70, ,000 VP 70, , ,000 Director 75, , ,000 Quantitative Risk Analyst 35,000 55, ,500 AVP 50,000 70, ,000 VP 70, , ,000 Director 100, , ,000 Operational Risk Analyst 35,000 48, ,200 AVP 48,000 65, ,000 VP 65,000 95, ,000 Director 85, , ,000 Credit Risk Analyst 40,000 50, ,000 AVP 45,000 65, ,000 VP 70,000 90, ,000 Director 75, , ,000 27

28 Astbury Marsden Salary Benchmarking 2013: Risk Investment Management Investment management includes wealth management, asset management, investment management, pension and hedge funds. Contract Basic ( pd) Intermediate ( pd) Expert Market Risk Analyst Business Analyst Project Manager Programme Manager Quantitative Risk Analyst Credit Risk Analyst Business Analyst Project Manager Programme Manager Data Analyst

29 Astbury Marsden Salary Benchmarking 2013: Risk Investment Management Investment management includes wealth management, asset management, investment management, pension and hedge funds. Permanent Base Min Base Max Bonus Min Bonus Max Market Risk Analyst 40,000 55, ,000 AVP 50,000 70, ,000 VP 70, , ,000 Director 75, , ,000 Quantitative Risk Analyst 40,000 55, ,500 AVP 50,000 70, ,000 VP 70,000 95, ,000 Director 100, , ,000 Operational Risk Analyst 40,000 48, ,200 AVP 48,000 65, ,000 VP 65,000 90, ,000 Director 85, , ,000 Credit Risk Analyst 40,000 50, ,000 AVP 45,000 65, ,000 VP 70,000 90, ,000 Director 75, , ,000 29

30 Technology

31 Strategy Technology Consulting Overview Astbury Marsden Salary Benchmarking 2013: Technology Review 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 Outlook for is going to play a key part in defining what the market will be like for 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. 31

32 Astbury Marsden Salary Benchmarking 2013: Technology Financial Intermediaries Financial intermediaries includes financial exchanges, brokers, clearing houses, rating agencies, software and data providers. Contract Basic ( pd) Intermediate ( pd) Development Java/Database - Front Office Java/Database - Middle/Back Office Java Messaging Developer Java GUI/SWING VBA Developer - Middle/Back Office Excel/Access VBA RAD - Front Office C++/NT/COM/DCOM - Front Office C++/NT/COM/DCOM - Middle/Back Office Quantitative Developer C++/Unix Developer C#/.NET/Winforms - Front Office C#/.NET/Winforms - Middle/Back Office Databases (DBA/Dev) Sybase DBA Oracle DBA SQL-Server DBA Oracle Developer Sybase Developer SQL Developer Expert 32

33 Astbury Marsden Salary Benchmarking 2013: Technology Financial Intermediaries Financial intermediaries includes financial exchanges, brokers, clearing houses, rating agencies, software and data providers. Contract Basic Intermediate Support Voice Support Trade Floor Support Desktop Support Web Systems Engineer Application Packaging Engineer Web Packaging Engineer Citrix Support Exchange Connectivity Openlink Front Office Applications Support Back Office Applications Support Support Manager Market Data Services Technical Support Engineers (Market Data Ser.) Market Data Analyst/Administrator Operations Unix/Netcool/Tivoli Operator Datacentre Operations Analyst Expert 33

34 Astbury Marsden Salary Benchmarking 2013: Technology Financial Intermediaries Financial intermediaries includes financial exchanges, brokers, clearing houses, rating agencies, software and data providers. Contract Basic Intermediate Networks Network Support Engineer Network Implementation Engineer Firewall Engineer Calypso Implementation (Calypso) Development (Calypso) Support (Calypso) Murex Implementation (Murex) Development (Murex) Support (Murex) Summit Implementation (Summit) Development (Summit) Support (Summit) Storage Storage Manager Storage Specialist (TSM, EMC) Storage - Support Engineer Expert 34

35 Astbury Marsden Salary Benchmarking 2013: Technology Financial Intermediaries Financial intermediaries includes financial exchanges, brokers, clearing houses, rating agencies, software and data providers. Contract Basic Intermediate Testing Test Manager Test Team Lead Test Analyst Project/Development Managers Programme Manager Strategic Development Manager Tactical Development Manager PMO Manager Project Manager (with Front Office product knowledge) Project Manager (with Middle/Back Office knowledge) Project Manager (with no specific product knowledge) Outsource Project Manager Infrastructure Project Manager Project Administrator/Co-ordinator Messaging Analyst (Swift, Crest) Messaging Technical Support Analyst Messaging Analyst Expert 35

36 Astbury Marsden Salary Benchmarking 2013: Technology Financial Intermediaries Financial intermediaries includes financial exchanges, brokers, clearing houses, rating agencies, software and data providers. Permanent Base Min Base Max Bonus Min Bonus Max Development Java/Database - Front Office 65, ,000 0 Uncapped Java/Database - Middle/Back Office 45,000 85, ,000 Java Messaging Developer 60,000 85, ,000 Java GUI/SWING/Flex 55,000 90, ,000 VBA Developer - Middle/Back Office 40,000 70, ,000 Excel/Access VBA RAD - Front Office 50,000 95, ,000 C++/NT/COM/DCOM - Front Office 65, , ,000 C++/NT/COM/DCOM - Middle/Back Office 45,000 85, ,000 Quantitative Developer 70, , ,000 C++/Unix Developer 55, , ,000 C#/.NET/Winforms - Front Office 65, , ,000 C#/.NET/Winforms - Middle/Back Office 45,000 85, ,500 Python/Scala and OOA/D Languages 65, ,000 0 Uncapped Databases (DBA/Dev) Sybase DBA 45, , ,000 Oracle DBA 45, , ,000 SQL-Server DBA 45, , ,000 Oracle Developer 45, , ,000 Sybase Developer 45, , ,000 SQL Developer 45, , ,000 36

37 Astbury Marsden Salary Benchmarking 2013: Technology Financial Intermediaries Financial intermediaries includes financial exchanges, brokers, clearing houses, rating agencies, software and data providers. Permanent Base Min Base Max Bonus Min Bonus Max Systems Administrators/Engineers SUN Solaris 44, , ,000 HP-UX 44, , ,000 AIX 44, , ,000 Microsoft Windows 44, , ,000 LINUX 44, , ,000 Business Analysts/Project Manager Junior BA/PM s 30,000 45, ,000 Mid level BA/PM s 45,000 70, ,000 Senior BA/PM s 70, , ,000 Technology Risk Management (TRM) Problem/Change Manager 55, , ,000 TISO 55,000 90, ,000 Global Incident Response Analyst 45,,000 85, ,000 General IT Security/Network Security Engineer 50,000 90, ,000 Security Policy & Risk Management 50, , ,000 Security Project/Programme Manager 55, , ,000 37

38 Astbury Marsden Salary Benchmarking 2013: Technology Financial Intermediaries Financial intermediaries includes financial exchanges, brokers, clearing houses, rating agencies, software and data providers. Permanent Base Min 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, ,500 Web Systems Engineer 45,000 85, ,500 Web Packaging Engineer 45,000 85, ,500 Citrix Support 30,000 80, ,000 Systems Support Analyst 44,000 85, ,500 Exchange Connectivity 44,000 90,000 5,000 20,000 Openlink 50, ,000 8,000 25,000 Front Office Applications Support 45, ,000 5,000 20,000 Back Office Applications Support 40,000 75, ,500 Support Manager 65, ,000 8,000 30,000 Market Data Services Technical Support Engineers (Market Data Ser.) 40,000 90, ,500 Market Data Analyst/Administrator 45,000 90, ,500 38

39 Astbury Marsden Salary Benchmarking 2013: Technology Financial Intermediaries Financial intermediaries includes financial exchanges, brokers, clearing houses, rating agencies, software and data providers. Permanent Base Min Base Max Bonus Min Bonus Max Networks Network Support Engineer 45,000 85, ,500 Network Implementation Engineer 45,000 85, ,500 Firewall Engineer 45,000 90, ,500 Testing Test Manager 55, , ,000 Test Team Lead 55, , ,000 Test Analyst 45,000 70, ,000 Project/Development Managers Strategic Development Manager 85, , ,000 Tactical Development Manager 85, , ,000 39

40 Astbury Marsden Salary Benchmarking 2013: Technology Investment Banking Contract Basic ( pd) Intermediate ( pd) Expert Development Java/Database - Front Office Java/Database - Middle/Back Office Java Messaging Developer Java GUI/SWING VBA Developer - Middle/Back Office Excel/Access VBA RAD - Front Office C++/NT/COM/DCOM - Front Office C++/NT/COM/DCOM - Middle/Back Office Quantitative Developer C++/Unix Developer C#/.NET/Winforms - Front Office C#/.NET/Winforms - Middle/Back Office Databases (DBA/Dev) Sybase DBA Oracle DBA SQL-Server DBA Oracle Developer Sybase Developer SQL Developer

41 Astbury Marsden Salary Benchmarking 2013: Technology Investment Banking Contract Basic Intermediate Systems Administrators/Engineers SUN Solaris HP-UX AIX Microsoft Windows LINUX Business Analysts Non Technical Front Office Expert Non Technical Middle/Back Office Technical with Front Office Technical with Middle/Back Office Tester/Business Analyst Technology Risk Management (TRM) Problem/Change Manager TISO Global Incident Response Analyst Global Incident Response Analyst General IT Security/Network Security Engineer Security Policy & Risk Management Security Project/Programme Manager

42 Astbury Marsden Salary Benchmarking 2013: Technology Investment Banking Contract Basic Intermediate Expert Support Voice Support Trade Floor Support Desktop Support Web Systems Engineer Application Packaging Engineer Web Packaging Engineer Citrix Support Systems Support Analyst Exchange Connectivity Openlink Front Office Applications Support Back Office Applications Support Support Manager Market Data Services Technical Support Engineers (Market Data Ser.) Market Data Analyst/Administrator Operations Unix/Netcool/Tivoli Operator Datacentre Operations Analyst

43 Astbury Marsden Salary Benchmarking 2013: Technology Investment Banking Contract Basic Intermediate Expert Networks Network Support Engineer Network Implementation Engineer Firewall Engineer Calypso Implementation (Calypso) Development (Calypso) Support (Calypso) Murex Implementation (Murex) Development (Murex) Support (Murex) ION Marketview Implementation (ION Marketview) Development (ION Marketview) Support (ION Marketview) Storage Storage Manager Storage Specialist (TSM, EMC) Storage - Support Engineer

44 Astbury Marsden Salary Benchmarking 2013: Technology Investment Banking Contract Basic Intermediate Expert Testing Test Manager Test Team Lead Test Analyst Development Managers Programme Manager Strategic Development Manager Tactical Development Manager PMO Manager Outsource Project Manager Infrastructure Project Manager Project Administrator/Co-ordinator Messaging Analyst (Swift, Crest) Messaging Technical Support Analyst Messaging Analyst

45 Astbury Marsden Salary Benchmarking 2013: Technology Investment Banking Permanent Base Min Base Max Bonus Min Bonus Max Development Java/Database - Front Office 65, , ,000 Java/Database - Middle/Back Office 45,000 85, ,000 Java Messaging Developer 60,000 85, ,000 Java GUI/SWING/Flex 55, , ,000 VBA Developer - Middle/Back Office 45,000 70, ,000 Excel/Access VBA RAD - Front Office 55, , ,000 C++/NT/COM/DCOM - Front Office 65, , ,000 C++/NT/COM/DCOM - Middle/Back Office 45,000 85, ,000 Quantitative Developer 70, , ,000 C++/Unix Developer 55, , ,000 C#/.NET/Winforms - Front Office 65, , ,000 C#/.NET/Winforms - Middle/Back Office 45,000 85, ,000 Python/Scala and OOA/D Languages 65, , ,000 Databases (DBA/Dev) Sybase DBA 48,000 90, ,000 Oracle DBA 48,000 85, ,000 SQL-Server DBA 48,000 85, ,000 Oracle Developer 48,000 75, ,000 Sybase Developer 48,000 75, ,000 SQL Developer 48,000 75, ,000 45

46 Astbury Marsden Salary Benchmarking 2013: Technology Investment Banking Permanent Base Min Base Max Bonus Min Bonus Max Systems Administrators/Engineers SUN Solaris 44, , ,000 HP-UX 44, , ,000 AIX 44, , ,000 Microsoft Windows 44, , ,000 LINUX 44, , ,000 Business Analysts/Project Managers Junior BA/PM s 40,000 55, ,000 Mid level BA/PM s 55,000 85, ,000 Senior BA/PM s 85, , ,000 Technology Risk Management (TRM) Problem/Change Manager 55,000 95, ,000 Global Incident Response Analyst 50,000 80, ,000 General IT Security/Network Security Engineer 50,000 80, ,000 Security Policy & Risk Management 50,000 90, ,000 Security Project/Programme Manager 55,000 90, ,000 46

47 Astbury Marsden Salary Benchmarking 2013: Technology Investment Banking Permanent Base Min Base Max Bonus Min Bonus Max Support Voice Support 44,000 75,000 3,000 15,000 Trade Floor Support 35,000 65,000 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 Exchange Connectivity 44,000 70,000 5,000 14,000 Openlink 50,000 85,000 8,000 19,000 Front Office Applications Support 45,000 80,000 5,000 16,000 Back Office Applications Support 40,000 60,000 3,000 12,000 Support Manager 65, ,000 8,000 20,000 Market Data Services 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 47

48 Astbury Marsden Salary Benchmarking 2013: Technology Investment Banking Permanent Base Min Base Max Bonus Min Bonus Max Testing Test Manager 60, , ,000 Test Team Lead 60, , ,000 Test Analyst 40,000 65, ,000 Development Managers Programme Manager 70, , ,000 Strategic Development Manager 70, , ,000 Tactical Development Manager 80, , ,000 PMO Manager 70, , ,000 Outsource Project Manager 75,000 95, ,000 Infrastructure Project Manager 50,000 90, ,000 Project Administrator/Co-ordinator 40,000 75, ,000 Messaging Analyst (Swift, Crest) Messaging Technical Support Analyst 40,000 55, ,000 Messaging Analyst 40,000 55, ,000 48

49 Astbury Marsden Salary Benchmarking 2013: Technology Investment Management Investment management includes wealth management, asset management, investment management, pension and hedge funds. Contract Basic ( pd) Intermediate ( pd) Development Java/Database - Front Office Java/Database - Middle/Back Office Java Messaging Developer Java GUI/SWING VBA Developer - Middle/Back Office Excel/Access VBA RAD - Front Office C++/NT/COM/DCOM - Front Office C++/NT/COM/DCOM - Middle/Back Office Quantitative Developer C++/Unix Developer C#/.NET/Winforms - Front Office C#/.NET/Winforms - Middle/Back Office Databases (DBA/Dev) Sybase DBA Oracle DBA SQL-Server DBA Oracle Developer Sybase Developer SQL Developer Expert 49

50 Astbury Marsden Salary Benchmarking 2013: Technology Investment Management Investment management includes wealth management, asset management, investment management, pension and hedge funds. Contract Basic Intermediate Systems Administrators/Engineers SUN Solaris HP-UX AIX Microsoft Windows LINUX Business Analysts Non Technical Front Office Non Technical Middle/Back Office Non Technical (no specific product knowledge) Technical with Front Office Technical with Middle/Back Office Technical (no specific product knowledge) Tester/Business Analyst Expert 50

51 Astbury Marsden Salary Benchmarking 2013: Technology Investment Management Investment management includes wealth management, asset management, investment management, pension and hedge funds. Contract Basic Intermediate Support Voice Support Trade Floor Support Desktop Support Web Systems Engineer Application Packaging Engineer Web Packaging Engineer Citrix Support Systems Support Analyst Exchange Connectivity Openlink Front Office Applications Support Back Office Applications Support Support Manager Market Data Services Technical Support Engineers (Market Data Ser.) Market Data Analyst/Administrator Operations Unix/Netcool/Tivoli Operator Datacentre Operations Analyst Expert 51