HONG KONG SALARY GUIDE

HONG KONG SALARY GUIDE 2015 1

morganmckinley.com.hk 2

MANAGING DIRECTOR S LETTER 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. 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. 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. RICHIE HOLLIDAY CHIEF OPERATIONS OFFICER - APAC Tel: +852 3907 3909 rholliday@morganmckinley.com 3

CONTENTS BANKING & FINANCIAL SERVICES 5 Asset Management 6 Operations 7 Hedge Fund & Private Equity 9 Investment Banking & Capital Markets 10 Private Banking 11 RISK & COMPLIANCE 37 SALARY SURVEY RESULTS 40 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 4

BANKING & FINANCIAL SERVICES TOP 3 MOST IN-DEMAND POSITIONS: 1 2 3 Regulatory Operations Relationship Management within Private Banking Analyst and Associate with technical & linguistic skills within Investment Banking 5

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-onyear 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. ASSET MANAGEMENT PERMANENT (HKD per month) 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 RFP WRITER / INVESTMENT WRITER $15k - $25k $25k - $45k $45k - $65k $65k - $90k $150k+ $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+ 6

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. 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. 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. We expect this trend to continue in 2015, with a greater percentage of the workforce being contract hires rather than permanent. 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. 7

BANKING & FINANCIAL SERVICES OPERATIONS PERMANENT & CONTRACT (HKD per month) ROLE ANALYST ASSOCIATE / AVP VP / SR. MANAGER SVP / DIRECTOR MD TRADE SUPPORT $22K - $35K $35k - $70k $80k - $100k $100k - $115k $125k - $150k CLIENT SERVICES $22k - $35k $35k - $60k $70k - $90k $100k - $115k $120k - $140k SETTLEMENTS $18k - $28k $30k - $45k $55k - $80k $70k - $80k $90k - $120k DOCUMENTATION $18k - $28k $30k - $45k $55k - $65k $70k - $80k $90k - $120k BUSINESS ANALYST / PROJECTS $30k - $40k $45k - $65k $70k - $100k $110k - $125k $125k - $150k EQUITY FINANCE (PRIME BROKERAGE) ANALYST ASSOCIATE/ AVP VP / SR. MANAGER SVP / DIRECTOR MD PRIME BROKERAGE / CLIENT SERVICES PRIME BROKERAGE / SETTLEMENTS $22k - $35k $35k - $60k $70k - $90k $100k - $115k $120k - $140k $18k - $28k $30k - $45k $55k - $65k $70k - $80k $90k - $120k OTHER ANALYST ASSOCIATE/ AVP VP / SR. MANAGER SVP / DIRECTOR MD LOANS ADMINISTRATION $15k - $22k $22k - $35k $40k - $60k $60k - $75k $75k - $90k STATIC DATA ANALYST $15k - $22k $22k - $35k $40k - $60k $60k - $80k $80k - $100k CONTROL / RECONCILIATIONS $22k - $35k $35k - $60k $70k - $90k $100k - $115k $125k - $150k ASSET SERVICING $18k - $28k $30k - $45k $55k - $65k $70k - $80k $90k - $120k CASH MANAGEMENT $20k - $30k $30k - $50k $55k - $70k $70k - $90k $90k - $120k 8

BANKING & FINANCIAL SERVICES HEDGE FUND & PRIVATE EQUITY PERMANENT An increasing number of private equity funds to be domiciled in Hong Kong can be observed according to Hong Kong's 2013-2014 budget. Furthermore, the current offshore exemption regulation from the government plans to amend and extend this number. There is approximately a growth of 23 percent on the total AUM of the Hong Kong-based funds when compared with the previous year. At the same time, with the growing focus of venture capital investment in Greater China, the region has become the largest private equity centre in Asia while Hong Kong has developed strong expertise of investing in Asia in 2014. Despite recent negativity across the hedge fund industry, including an increased level of fund closures, the total industry assets will reach a new all-time high and is expected to rise by 7 percent in 2015. THERE IS APPROXIMATELY A GROWTH OF 23 PERCENT ON THE TOTAL AUM OF THE HONG KONG-BASED FUNDS WHEN COMPARED WITH THE PRECEDING YEAR. With the continuous growth of digital marketing, hedge fund managers are more efficient in delivering information and promoting the firm s brand in the marketplace. In general, the industry is positive in regards to growth and hiring in this space and the market indicates that new job opportunities will continue in an upward trend. HEDGE FUND & PRIVATE EQUITY PERMANENT (HKD per month) ROLE ANALYST ASSOCIATE/ AVP VP / SR. MANAGER SVP / DIRECTOR MD FUND / PORTFOLIO MANAGER $45k - $60k $55k - $70k $70k - $100k $120k - $200k $250k+ INVESTMENT ANALYST $30k - $48k $48k - $70k $70k - $120k $110k - $150k $150k+ ECONOMIST / INVESTMENT STRATEGIST PORTFOLIO CONSTRUCTION $30k - $45k $45k - $65k $70k - $120k $110k - $170k $200k+ $35k - $45k $40k - $55k $60k - $65k $70k - $85k $90k - $115k TRADER $20k - $45k $40k - $65k $70k - $100k $90k - $165k $180k+ INVESTOR RELATIONS $25k - $35k $35k - $50k $65k - $100k $92k - $170k $200k+ PRIVATE EQUITY $35k - $50k $50k - $80k $65k - $100k $90k - $130k $110k - $210k 9

BANKING & FINANCIAL SERVICES INVESTMENT BANKING & CAPITAL MARKETS PERMANENT Last year saw stability across investment banking headcount following two years of decline. We expect this trend to continue into 2015, as primary market activity continues its momentum globally. In terms of positions, product and coverage teams have demand for analysts and associates with the requisite technical and linguistic skills. Furthermore, financial sponsor activity looks set to increase with demand for professionals with leveraged finance and private equity advisory experience. PRODUCT AND COVERAGE TEAMS HAVE DEMAND FOR ANALYSTS AND ASSOCIATES WITH THE REQUISITE TECHNICAL AND LINGUISTIC SKILLS. Basic salaries amongst front office professionals have remained largely unchanged since the global financial crisis, with overall compensation figures marginally down last year. On the markets side, we anticipate China A-share sales professionals, analysts and strategists will be in demand, due to the Shanghai-Hong Kong Stock Connect. There will also be continued demand for H- share internet/mobile hardware and property analysts and credit market analysts as the dim sum bond market continues to mature. Conversely, the luxury goods, gaming and natural resources sectors face significant headwinds in the first half of the year in Hong Kong and Mainland China. As a result, we expect less banking positions focusing on these sectors in the short term. Year on year, salaries are likely to increase modestly for both primary and secondary market professionals. INVESTMENT BANKING & CAPITAL MARKETS PERMANENT (HKD per month) ROLE CORPORATE FINANCE ROLE SALES AND TRADING ANALYST 1 $40k - $60k Sales Institutional Analyst $40k - $60k ANALYST 2 $50k - $70k Sales Institutional Associate $50k - $70k ANALYST 3 $60k - $80k Sales Institutional VP $130k - $160k ASSOCIATE 1 $70k - $100k Sales Corporate Analyst $40k - $60k ASSOCIATE 2 $80k - $110k Sales Corporate Associate $50k - $70k ASSOCIATE 3 $100k - $120k Sales Corporate VP $130k - $160k VP $130k - $160k Trader Analyst $40k - $60k DIRECTOR $160k - $225k Trader Associate $80k - $120k MANAGING DIRECTOR $225k+ Trader VP $130k - $160k EQUITY RESEARCH RESEARCH ASSOCIATE $60k - $80k SENIOR RESEARCH ASSOCIATE $100k - $120k WRITING ANALYST $130k - $180k SECTOR HEAD $180k+ 10

BANKING & FINANCIAL SERVICES PRIVATE BANKING PERMANENT Hiring activity for the private banking industry was very active across various functions in 2014. Positions that were most in demand include relationship manager, relationship manager support and investment consultant at all levels. This demonstrates that the majority of private banks remain keen to expand their sales force in order to become the bank of choice for the growing number of high net worth (HNW) and ultra high net worth (UNHW) individuals across the region. However, banks frustrated over limited talent pools, have become increasingly open to hiring candidates from investment banking, asset management and corporate banking divisions. Other in-demand professionals include markets business manager, dealer, and client documentations POSITIONS THAT WERE MOST IN DEMAND INCLUDE RELATIONSHIP MANAGER, RELATIONSHIP MANAGER SUPPORT AND INVESTMENT CONSULTANT AT ALL LEVELS. specialist. The job outlook of 2015 is positive, as banks seek to maintain the same level of hiring activity as 2014, so as to be in line with future growth plans. In terms of salary, we expect an average pay rise to be between 5-7 percent, reflecting the business needs to retain talent. PRIVATE BANKING PERMANENT (HKD per month) ROLE ANALYST ASSOCIATE / AVP VP / SR. MANAGER SVP / DIRECTOR MD PRIVATE BANKER $40k - $55k $60k - $100k $110k - $125k $130k - $150k $160k+ FUND / PORTFOLIO MANAGER $40k - $50k $50k - $70k $80k - $120k $130k - $150k $150k+ INVESTMENT ADVISOR / CONSULTANT $35k - $50k $60k - $80k $100k - $120k $125k - $150k $150k+ PRODUCT SPECIALIST $35k - $50k $50k - $70k $80k - $125k $125k - $150k $150k+ TRADER / DEALER $30k - $50k $50k - $80k $80k - $100k $100k - $130k $130k+ BUSINESS MANAGEMENT $35k - $45k $50k - $80k $80k - $120k $130k - $150k $150k+ ASSISTANT RELATIONSHIP MANAGER PRODUCT DEVELOPER / MANAGEMENT $30k - $50k - - - - $35k - $45k $50k - $70k $80k - $100k $100k - $120k $130k+ 11

FINANCE & ACCOUNTING TOP 3 MOST IN-DEMAND POSITIONS: 1 2 3 Financial Planning and Analysis (FP&A) Internal Control and Compliance Professionals with expertise in the Third Basel Accord, the Dodd-Frank Act, EMIR, HKMA and SFC regulations 12

FINANCE & ACCOUNTING COMMERCE & INDUSTRY PERMANENT Hiring activities for finance and accounting professionals was stable in 2014, and we expect a positive growth in 2015. Replacement hiring will continue as the dominant trend. In order to control costs, companies will be more cautious in approving new headcount. Financial planning and analysis (FP&A) professionals are still in great demand. Internal control and compliance professionals are also needed by multinational organisations to ensure compliance with group policies and local regulations. REPLACEMENT HIRING WILL CONTINUE AS THE DOMINANT TREND. IN ORDER TO CONTROL COSTS, COMPANIES WILL BE MORE CAUTIOUS IN APPROVING NEW HEADCOUNT. In 2015, average salary increases will be between 3-5 percent, which is a reasonable rate across the Hong Kong market. The push factor for employees will always be better remuneration, career progression, regional exposure and travelling requirements. COMMERCE & INDUSTRY CONTRACT Demand for contract staff will continue as multinational organisations continue to experience headcount constraints. Often, temporary headcount can change to permanent once the headcount is approved. Additionally, due to the urgency of the role, contract positions are more flexible in terms of budget, making salaries slightly higher than those for permanent roles. There is significant demand for temporary and contract staff in the system implementation area. Maternity leave cover and extra workload due to shortage of headcount remain common reasons for the hiring of contract staff. This is a good way for unemployed professionals to re-enter the market. It is also a good entry point for overseas professionals looking to work in Hong Kong and gain experience. 13

FINANCE & ACCOUNTING FINANCE & ACCOUNTING PERMANENT (HKD per month) ROLE ACCOUNTANT SENIOR MANAGER SENIOR MANAGER INTERNAL AUDIT $25k - $35k $36k - $50k $50k - $80k $80k - $100k TREASURY $25k - $35k $36k - $45k $46k - $70k $70k - $100k TAX $20k - $30k $30k - $45k $46k - $80k $80k - $120k COST ACCOUNTING $20k - $30k $31k - $45k $45k+ - MANAGEMENT ACCOUNTING $20k - $30k $31k - $45k $45k+ - FINANCIAL ACCOUNTING $20k - $30k $31k - $40k $40k+ - FINANCIAL ANALYST $20k - $30k $31k - $45k $45k+ - SENIOR FINANCE ROLE SME MULTINATIONAL FP&A $38k - $55k $45k - $65k FINANCE MANAGER $35k - $55k $45k - $70k FINANCIAL CONTROL $40k - $55k $45k - $70k GROUP / REGIONAL FINANCIAL CONTROLLER $45k - $80k $50k - $90k FINANCE DIRECTOR $60k - $100k $80k - $140k FINANCE & ACCOUNTING CONTRACT (HKD per month) ROLE ACCOUNTANT SENIOR MANAGER SENIOR MANAGER INTERNAL AUDIT $25k - $40k $36k - $50k $50k - $80k $80k - $150k TREASURY $20k - $40k $36k - $50k $50k - $80k $80k - $120k TAX $25k - $40k $36k - $50k $50k - $85k $80k - $120k COST ACCOUNTING $20k - $35k $31k - $45k $40k+ - MANAGEMENT ACCOUNTING $20k - $35k $31k - $45k $40k+ - FINANCIAL ACCOUNTING $20k - $35k $31k - $45k $40k+ - FINANCIAL ANALYST $20k - $35k $31k - $45k $40k+ - SENIOR FINANCE ROLE SME MULTINATIONAL FP&A $38k - $55k $45k - $65k FINANCE MANAGER $35k - $55k $45k - $70k FINANCIAL CONTROL $40k - $55k $45k - $70k GROUP / REGIONAL FINANCIAL CONTROLLER $45k - $80k $50k - $90k FINANCE DIRECTOR $60k - $100k $80k - $140k 14

FINANCE & ACCOUNTING FINANCIAL SERVICES PERMANENT This area has grown steadily over the past few years, and the trend will continue in 2015. However, salaries will remain relatively stable due to cost constraints from banks. While replacement hires will continue to account for the bulk of activity, an area that is growing is regulatory reporting and regulatory change. As banks are increasingly regulated on their capital adequacy, stress testing and market liquidity risk, professionals with an expertise in the Third Basel Accord, the Dodd- Frank Act, EMIR, HKMA and SFC regulations will be highly sought after. PROFESSIONALS WITH AN EXPERTISE IN THE THIRD BASEL ACCORD, THE DODD- FRANK ACT, EMIR, HKMA AND SFC REGULATIONS WILL BE HIGHLY SOUGHT AFTER. As there is an increasing demand for these professionals, salaries can be expected to rise more significantly than that of professionals in other areas of finance. FINANCIAL SERVICES CONTRACT As headcount constraints remain at many banks, finance and accounting will have a continued demand for contract hiring. Contractors are a good solution for the roll out of a new project, maternity cover and extra workload at year-end closing. Professionals with a certified accountancy qualification or expertise and knowledge of financial reporting standards will be highly sought after. It is also a good way for unemployed candidates to reenter the workforce. 15

FINANCE & ACCOUNTING FINANCE & ACCOUNTING PERMANENT (HKD per month) ROLE ANALYST ASSOCIATE / AVP VP / SR. MANAGER SVP / DIRECTOR SR. DIRECTOR PRODUCT CONTROL $24k - $38k $35k - $75k $50k - $100k $100k - $125k $125k+ FINANCIAL CONTROL $22k - $35k $30k - $62k $55k - $80k $80k - $120k $120k+ VALUATIONS $30k - $40k $36k - $78k $62k - $110k $110k - $130k $130k+ MANAGEMENT REPORTING FINANCIAL REPORTING $23k - $39k $35k - $65k $70k - $95k $95k - $125k $125k+ $15k - $36k $30k - $58k $50k - $80k $80k - $122k $122k+ INTERNAL AUDIT $20k - $33k $30k - $64k $60k - $85k $85k - $130k $130k+ FINANCE & ACCOUNTING CONTRACT (HKD per month) ROLE ANALYST ASSOCIATE / AVP VP/ SR. MANAGER SVP/ DIRECTOR SR. DIRECTOR PRODUCT CONTROL $28k - $42k $35k - $75k $50k - $100k $100k - $125k $125k+ FINANCIAL CONTROL $25k - $38k $30k - $62k $55k - $80k $80k - $120k $120k+ VALUATIONS $35k - $44k $38k - $75k $62k - $110k $110k - $130k $130k+ MANAGEMENT REPORTING FINANCIAL REPORTING $24k - $40k $36k - $66k $70k - $95k $95k - $125k $125k+ $20k - $37k $31k - $59k $50k - $80k $80k - $122k $122k+ INTERNAL AUDIT $25k - $35k $30k - $65k $60k - $85k $85k - $130k $130k+ 16

HUMAN RESOURCES TOP 3 MOST IN-DEMAND POSITIONS: 1 2 3 Talent Engagement & Communications Employer Branding Talent Acquisition 17

HUMAN RESOURCES COMMERCE & INDUSTRY PERMANENT Last year was stable for hiring across HR and this trend will continue in 2015. Learning and development professionals will continue to be in demand across all industries. Many businesses will continue to implement people development initiatives to save cost and retain talent. There will be demand for organisational development professionals within businesses that are more mature to help evolve and develop the business internally. As many firms continue to shift towards a business partnering model, there will be newly created headcounts for professionals in this area. THERE WILL BE DEMAND FOR ORGANISATIONAL DEVELOPMENT PROFESSIONALS WITHIN BUSINESSES THAT ARE MORE MATURE. Hiring is set to increase within the retail and luxury sectors, particularly for companies that have Hong Kong as their regional hub. This will help increase market share across Mainland China. Employees are expecting a 3-5 percent salary increase internally and 10-15 percent increase externally. COMMERCE & INDUSTRY CONTRACT Demand for contractors will continue at a steady pace in 2015, and will increase amongst Hong Kong regional headquartered companies that are looking to launch new initiatives. This demand will include fields within human resources information systems (HRIS) and change management. Many new American and European businesses are also looking to enter the Asia Pacific market and this will create demand for contract recruiters. These businesses are likely to go on a hiring drive to rapidly expand their business operations and catch up with their competitors. As contract headcounts are usually regarded as an expense, there is more flexibility in budgets for hiring contractors. 18

HUMAN RESOURCES HUMAN RESOURCES PERMANENT (HKD per month) ROLE HR VP / HEAD $120k+ HR DIRECTOR $76k - $120k SENIOR HR MANAGER $60k - $76k HR MANAGER $43k - $60k ASSISTANT HR MANAGER $35k - $43k HR SENIOR OFFICER $28 - $35k HR OFFICER / ASSISTANT $16k - $28k TALENT ACQUISITION HEAD $76k+ TALENT ACQUISITION MANAGER $43k - $76k TALENT ACQUSITION SPECIALIST $23k - $43k ORGANISATIONAL DEVELOPMENT HEAD $76k - $120k TALENT DEVELOPMENT / LEARNING & DEVELOPMENT DIRECTOR $63k - $120k LEARNING & DEVELOPMENT TRAINING MANAGER $43k - $63k LEARING & DEVELOPMENT ASSISTANT TRAINING MANAGER $32k - $43k LEARNING & DEVELOPMENT SENIOR OFFICER $28k - $40k LEARNING & DEVELOPMENT OFFICER $16k - $28k COMPENSATION AND BENEFITS DIRECTOR $70k - $90k COMPENSATION AND BENEFITS MANAGER $40k - $70k COMPENSATION AND BENEFITS ASSISTANT MANAGER $28k - $40k COMPENSATION AND BENEFITS SPECIALIST $21k - $28k HUMAN RESOURCES CONTRACT (HKD per month) ROLE HR DIRECTOR / HEAD $125k+ HR MANAGER / HR BUSINESS PARTNER $66k - $125k ASSOCIATE / ASSISTANT HR MANAGER $32k - $54k HR OFFICER / ASSISTANT $18k - $25k RECRUITMENT COORDINATOR $20k - $28k RECRUITMENT SPECIALIST $35k - $70k LEARNING & DEVELOPMENT SPECIALIST $55k - $70k LEARNING & DEVELOPMENT OFFICER / COORDINATOR $20k - $28k C&B/PAYROLL MANAGER $40k - 75k C&B/PAYROLL SPECIALIST $20k - $38k SHARED SERVICE / HR OPERATIONS MANAGER $45k - $80k 19

HUMAN RESOURCES FINANCIAL SERVICES PERMANENT In 2014, hiring was reasonably conservative across the banking sector and was formed mainly of replacement headcounts in bulge bracket firms. Other areas of new headcount to support strategic expansion were in the private banks, asset management firms and businesses undergoing transformation at larger banks. Learning and development, as well as talent management professionals have been in high demand and this is expected to continue to help implement people development initiatives that save costs and retain talent. LEARNING AND DEVELOPMENT AS WELL AS TALENT MANAGEMENT PROFESSIONALS HAVE BEEN IN HIGH DEMAND AND THIS IS EXPECTED TO CONTINUE. Salary increments within HR have been approximately 5 percent but anywhere between 10-20 percent with external moves for strategic positions. Morgan McKinley expects hiring across all HR disciplines with a positive outlook within the financial services sector. FINANCIAL SERVICES CONTRACT Demand for HR contract positions has been seasonal, specifically in talent acquisition, and compensation and benefits positions. This is to support fluctuating workloads at specific times of the year. With continued budget and headcount constraint, the HR contract market continues to develop. We anticipate an increase in contract positions turning permanent in 2015, as professionals prove their value combined with stronger signs of business growth. In general, salaries across different HR contract positions have increased by 5 percent or will offer extra benefits. 20

HUMAN RESOURCES HUMAN RESOURCES PERMANENT (HKD per month) ROLE HR DIRECTOR / HEAD $130k+ HR MANAGER / HR BUSINESS PARTNER $66k - $130k ASSOCIATE / ASSISTANT HR MANAGER $32k - $54k HR OFFICER / ASSISTANT $18k - $25k TALENT ACQUISITION HEAD / DIRECTOR $115k+ TALENT ACQUISITION MANAGER $45k - $110k TALENT ACQUISITION SPECIALIST $30k - $45k TALENT ACQUISITION COORDINATOR $20k - $28k LEARNING & DEVELOPMENT HEAD TALENT DEVELOPMENT / ORGANISATIONAL DEVELOPMENT DIRECTOR $125k+ $108k+ LEARNING & DEVELOPMENT SPECIALIST $55k - $70k LEARNING & DEVELOPMENT OFFICER / COORDINATOR $20k - $28k COMPENSATION AND BENEFITS HEAD $120k+ COMPENSATION AND BENEFITS MANAGER $40k - $80k PAYROLL MANAGER $40k - $75k PAYROLL SPECIALIST $25k - $34k GLOBAL MOBILITY MANAGER $75k - $105k GLOBAL MOBILITY SPECIALIST $40k - $62k SHARED SERVICE / HR OPERATIONS MANAGER $45k - $80k HUMAN RESOURCES CONTRACT (HKD per month) ROLE HR DIRECTOR / HEAD $125k+ HR MANAGER / HR BUSINESS PARTNER $66k - $125k ASSOCIATE / ASSISTANT HR MANAGER $32k - $54k HR OFFICER / ASSISTANT $18k - $25k RECRUITMENT COORDINATOR $20k - $28k RECRUITMENT SPECIALIST $35k - $70k LEARNING & DEVELOPMENT SPECIALIST $55k - $70k LEARNING & DEVELOPMENT OFFICER / COORDINATOR $20k - $28k C&B/PAYROLL MANAGER $40k - 75k C&B/PAYROLL SPECIALIST $20k - $38k SHARED SERVICE / HR OPERATIONS MANAGER $45k - $80k 21

IT TOP 3 MOST IN-DEMAND POSITIONS: 1 2 3 E-commerce and Mobile Application Development Project and Change Information Security and IT Risk Management 22

IT COMMERCE & INDUSTRY PERMANENT 2015 will prove challenging for certain areas. This can be attributed to Hong Kong s current political environment and a decline across the retail sector in 2014. Whilst we expect continued growth in demand for e-commerce and mobile application development professionals, many traditional commerce enterprises will experience challenges in transforming and migrating to the next generation e-business models. This will lead to significant demand for project and change managers who are familiar with digital marketing, e-payment channels or O2O distribution. SIGNIFICANT DEMAND FOR PROJECT AND CHANGE MANAGERS, FAMILIAR WITH DIGITAL MARKETING, E-PAYMENT CHANNELS OR O2O DISTRIBUTION. The trend for recruiting skillful mobile developers is expected to continue. However, relative to this job category, employers seem to have a tendency to hire professionals with strong ambition and less relevant experience. We attribute this trend to the scarcity of experienced individuals in the mobile development space. COMMERCE & INDUSTRY CONTRACT Due to increasing investment in technology advancement, the IT contract market will remain strong in 2015. As with the financial sector, corporations look to improve their technology infrastructure by hiring external consultancy and professional service providers. In order to ease the pressure of drastic growth in headcounts, contracting remains an ideal solution for many organisations. We expect an upward trend in salary for certain positions, including digital/ux (user experience), and designer/mobile/web developers. Traditional infrastructure specialists and project managers can expect a slight adjustment in salary of between 5-8 percent. 23

IT IT PERMANENT (HKD per month) ROLE ANALYST SENIOR MANAGER SENIOR MANAGER PRE-SALES CONSULTANT $25k - $30k $30k - $35k $40k - $50k $55k - $65k ANALYST PROGRAMMER $20k - $25k $30k - $35k $40k - $50k $55k - $65k MOIBLE APPLICATION PROGRAMMER $30k - $35k $40k - $45k $55k - $60k $65k - $75k UNIX / WINDOWS SYSTEM ADMINISTRATOR $25k - $30k $30k - $35k $45k - $55k $60k - $70k NETWORK / VOICE INFRASTRUCTURE $20k - $25k $35k - $45k $50k - $60k $60k - $70k DATA WAREHOUSING $20k - $30k $35k - $40k $45k - $55k $60k - $65k PROJECT MANAGER $25k - $30k $35k - $45k $55k - $65k $65k - $75k BUSINESS ANALYST $20k - $30k $35k - $45k $45k - $55k $60k - $70k SERVICE DELIVERY $25k - $30k $35k - $45k $45k - $55k $60k - $70k DESKTOP / APPLICATION SUPPORT $20k - $25k $30k - $35k $40k - $50k $55k - $65k IT MANAGER $25k - $35k $40k - $45k $50k - $55k $65k - $75k TESTING / QA $20k - $30k $30k - $35k $40k - $50k $55k - $65k DATA CENTER MANAGER $20k - $30k $30k - $35k $40k - $50k $55k - $65k IT CONTRACT (HKD per month) ROLE ANALYST SENIOR MANAGER SENIOR MANAGER PRE-SALES CONSULTANT $25k - $30k $30k - $35k $40k - $50k $55k - $65k ANALYST PROGRAMMER $20k - $25k $35k - $45k $45k - $55k $55k - $65k MOIBLE APPLICATION PROGRAMMER $25k - $35k $40k - $45k $55k - $65k $65k - $75k UNIX/WINDOWS SYSTEM ADMINISTRATOR $20k - $25k $35k - $45k $45k - $55k $55k - $65k NETWORK/VOICE INFRASTRUCTURE $20k - $25k $35k - $45k $45k - $55k $55k - $65k DATA WAREHOUSING $20k - $30k $35k - $40k $45k - $55k $60k - $65k PROJECT MANAGER $25k - $30k $35k - $45k $45k - $55k $65k - $75k BUSINESS ANALYST $20k - $30k $30k - $35k $45k - $55k $60k - $65k SERVICE DELIVERY $20k - $30k $30k - $35k $40k - $50k $60k - $65k DESKTOP/APPLICATION SUPPORT $20k - $25k $30k - $35k $40k - $50k $55k - $65k IT MANAGER $25k - $35k $40k - $45k $50k - $55k $65k - $75k TESTING/QA $20k - $30k $30k - $35k $40k - $50k $55k - $65k DATA CENTER MANAGER $20k - $30k $30k - $35k $40k - $50k $55k - $65k 24

IT FINANCIAL SERVICES PERMANENT The outlook for 2015 remains challenging considering the macroeconomic environment. However, we expect hiring to remain strong in certain areas. The compliance and regulatory environment will see a significant demand for professionals across information security and IT risk management in 2015. Application developers and senior management professionals with experience in the implementation of Agile software will also be in high demand. INVESTMENT BANKS AND FINANCIAL INSTITUTIONS ARE EXPECTED TO PAY MORE ATTENTION AND RESOURCES TO BIG DATA ANALYST AND DIGITAL STRATEGY PROFESSIONALS. Investment banks and financial institutions are expected to pay more attention and resources to big data analyst and digital strategy professionals. It is almost certain that data analysts will play a critical role across front to back office in the future. The outsourcing approach across development teams and infrastructure fields remains part of the cost-saving strategy, which indicates more career opportunities emerging at global solution providers. FINANCIAL SERVICES CONTRACT The contract market remains strong in the first half of 2015. Limitations in IT headcounts will push banks to hire external consultants in project engagement as well as migrating internal applications to solution vendors, which also poses growing demand in secondment contractors. In the current global economic environment, we forecast the overall salary increase for financial services IT professionals to remain between 5-6 percent. Demand is expected to increase for specific positions such as high frequency trading development, fixed income production management and UNIX engineers. As a result, professionals in these areas can expect potential salary adjustment. 25

IT IT PERMANENT (HKD per month) ROLE ANALYST ASSOCIATE / AVP VP DIRECTOR OR ABOVE DEVELOPER - FRONT OFFICE $35k - $45k $55k - $65k $75k - $100k $110k + DEVELOPER - MO/BO $25k - $35k $40k - $55k $65k - $85k $100k+ BUSINESS ANALYST - FRONT OFFICE $35k - $40k $55k - $65k $75k - $100k $110k+ BUSINESS ANALYST - MO/BO $25k - $35k $40k - $55k $65k - $75k $100k+ PROJECT MANAGER - FRONT OFFICE $35k - $45k $55k - $70k $75k - $100k $110k+ PROJECT MANAGER - MO/BO $30k - $40k $45k - $55k $65k - $80k $100k+ DESKTOP / TRADING FLOOR SUPPORT $25k - $35k $40k - $50k $55k - $75k $85k+ PRODUCTION SUPPORT APPLICATION SUPPORT $35k - $45k $55k - $65k $75k - $100k $110k+ UNIX / WINDOWS SYSTEM ENGINEER $30k - $40k $50k - $60k $65k - $85k $100k+ NETWORK / VOICE ENGINEER $30k - $40k $50k - $60k $65k - $85k $100k+ DATABASE ADMINISTRATOR $30K - $40K $50k - $60k $65k - $85k $100k+ INFORMATION SECURITY $30k - $40k $50k - $60k $75k - $90k $100k+ MARKET DATA ANALYST $35k - $45k $55k - $65k $75k - $90k $100k+ IT CONTRACT (HKD per month) ROLE ANALYST ASSOCIATE / AVP VP DIRECTOR OR ABOVE DEVELOPER - FRONT OFFICE $35k - $45k $55k - $75k $85k - $100k $110k + DEVELOPER - MO/BO $25k - $35k $50k - $60k $65k - $85k $100k+ BUSINESS ANALYST - FRONT OFFICE $35k - $45k $55k - $75k $85k - $100k $110k+ BUSINESS ANALYST - MO/BO $25k - $35k $50k - $60k $65k - $80k $100k+ PROJECT MANAGER - FRONT OFFICE $35k - $45k $65k - $75k $75k - $100k $110k+ PROJECT MANAGER - MO/BO $30k - $40k $50k - $60k $65k - $80k $100k+ DESKTOP / TRADING FLOOR SUPPORT $25k - $35k $40k - $50k $55k - $75k $85k+ PRODUCTION SUPPORT APPLICATION SUPPORT $35k - $45k $60k - $70k $75k - $95k $100k+ UNIX / WINDOWS SYSTEM ENGINEER $30k - $40k $40k - $60k $75k - $95k $100k+ NETWORK / VOICE ENGINEER $25k - $35k $40k - $60k $75k - $95k $100k+ DATABASE ADMINISTRATOR $25K - $35K $40k - $60k $65k - $85k $85k+ INFORMATION SECURITY $35k - $45k $60k - $70k $75k - $95k $100k+ MARKET DATA ANALYST $35k - $45k $60k - $70k $75k - $95k $90k+ 26

INSURANCE TOP 3 MOST IN-DEMAND POSITIONS: 1 2 3 Regional Marketing Communication and Distribution Management Product Development and Underwriting High Net Worth (HNW) market 27

INSURANCE INSURANCE PERMANENT The insurance industry expects the global economy to show conservative growth in 2015. The Asia Pacific s (APAC) industrialised nations should continue to see solid growth this year and next. With 2015 headcount finalised, the majority of insurers in the APAC region have indicated there will be a hiring push but a conservative one. New regulations introduced by the Securities and Futures Commission (SFC), which aim to improve the transparency of investment linked assurance schemes (ILAS), have made it harder to sell and constrain business development for life insurers. Therefore, the high net worth (HNW) market has become a key focus and there is strong demand for all types of professionals in this area, especially in product development and underwriting. In a mature market like Hong Kong, insurers are optimising their customer reach through a revamp of their distribution and communication channels. This is in order to reach new customers as household incomes grow in developing markets. In-demand IN-DEMAND PROFESSIONALS INCLUDE THOSE WITH REGIONAL MARKETING COMMUNICATION AND DISTRIBUTION MANAGEMENT BACKGROUNDS. professionals include those with regional marketing communication and distribution management backgrounds. With new headcount and the promising direction of the industry as a whole, 2015 should prove to be another strong year. Salaries have not fluctuated significantly but clients have demonstrated a willingness to be more flexible in order to attract top calibre professionals from overseas. For internal reviews, professionals have reported salary increases in the 3-7 percent range. However, on average, professionals changing employers are still getting increases of between 10-18 percent. INSURANCE PERMANENT (HKD per month) ROLE ASST. MANAGER MANAGER SR. MANAGER DEPT. HEAD EXECUTIVE ACTUARIAL $36k - $55k $46k - $75k $65k - $90k $110k+ $130k+ ORM $36k - $46k $50k - $70k $75k - $90k $120K+ $110k+ COMPLIANCE $32k - $44k $48k - $65k $55k - $85k $100K+ $110k+ DISTRIBUTION $25k - $40k $40k - $58k $52k - $82k $80k+ $95k+ AUDIT $38k - $48k $46k - $74k $58k - $85k $95k+ $100k+ MARKETING $25k - $40k $35k - $60k $55k - $75k $75+ $95k+ FINANCE $34k - $45k $47k - $65k $55k - $83k $90k+ $110k+ 28

OFFICE SUPPORT TOP 3 MOST IN-DEMAND POSITIONS: 1 2 3 Office Administration Secretarial Team Assistant 29

OFFICE SUPPORT COMMERCE & INDUSTRY PERMANENT Whilst luxury brands have slowed down hiring activities, we remain optimistic and predict strong hiring during the first three quarters in 2015. As opposed to financial services firms, the commerce and industry sector has seen an increased requirement for professionals with office administration as well as secretarial skills. There was also a slight increase in salaries across different levels in 2014. THE COMMERCE AND INDUSTRY SECTOR HAS SEEN AN INCREASED REQUIREMENT FOR PROFESSIONALS WITH OFFICE ADMINISTRATION AS WELL AS SECRETARIAL SKILLS. COMMERCE & INDUSTRY CONTRACT It is predicted that 2015 will see an upturn in temporary and contract roles, with more variety across all areas of the secretarial and business support market. Salaries for contract roles for 2015 are unlikely to increase significantly, based on projected market conditions. We foresee more roles within retail and property companies. Temporary team assistants for small teams and general secretarial roles are predicted to be the main demand in the contract market, particularly for short term coverage positions. OFFICE SUPPORT PERMANENT (HKD per month) ROLE OFFICE MANAGER $25k - $50k EXECUTIVE ASSISTANT (TO SENIOR MANAGEMENT) $35k - $45k PERSONAL ASSISTANT $25k - $45k TEAM SECRETARY $18k - $35k SENIOR ADMINISTRATOR $18k - $30k ADMINISTRATOR $15k - $30k JUNIOR ADMINISTRATOR $10k - $25k RECEPTIONIST $10k - $27k OFFICE SUPPORT CONTRACT (HKD per month) ROLE OFFICE MANAGER $25k - $50k EXECUTIVE ASSISTANT (TO SENIOR MANAGEMENT) $22k - $40k PERSONAL ASSISTANT $20k - $40k TEAM SECRETARY $18k - $35k SENIOR ADMINISTRATOR $18k - $30k ADMINISTRATOR $15k - $30k JUNIOR ADMINISTRATOR $10k - $25k RECEPTIONIST $10k - $27k 30

OFFICE SUPPORT FINANCIAL SERVICES PERMANENT Salaries were consistent across office support throughout 2014 and will continue into 2015. There was strong demand for team assistants whose team sizes expanded due to cost constraints. There was also an increase in demand for facilities management and general administration roles. However, there was less demand for one-to-one personal assistant/executive assistant support roles. THERE WAS STRONG DEMAND FOR TEAM ASSISTANTS WHOSE TEAM SIZES EXPANDED DUE TO COST CONSTRAINTS. FINANCIAL SERVICES CONTRACT There was a significant increase in contract positions within the market across all levels, with the most noticeable rise seen in the second half of 2014. Therefore, secretarial and business support professionals need to be more flexible when looking for a new role with a majority of positions eventually converting to permanent headcount. Salary for contract roles will likely remain the same for 2015. OFFICE SUPPORT PERMANENT (HKD per month) ROLE ADMINISTRATION MANAGER $35k - $65k EXECUTIVE ASSISTANT (TO SENIOR MANAGEMENT) $40k - $70k PERSONAL ASSISTANT $35k - $55k TRADING FLOOR SECRETARY $22k - $42k TEAM SECRETARY $20k - $38k ADMINISTRATOR $18k - $35k JUNIOR ADMINISTRATOR $12k - $25k RECEPTIONIST $11k - $23k OFFICE SUPPORT CONTRACT (HKD per month) ROLE OFFICE MANAGER $25k - $50k EXECUTIVE ASSISTANT (TO SENIOR MANAGEMENT) $22k - $40k PERSONAL ASSISTANT $20k - $40k TEAM SECRETARY $18k - $35k SENIOR ADMINISTRATOR $18k - $30k ADMINISTRATOR $15k - $30k JUNIOR ADMINISTRATOR $10k - $25k RECEPTIONIST $10k - $27k 31

SALES & MARKETING TOP 3 MOST IN-DEMAND POSITIONS: 1 2 3 Digital Marketing & Social Media Technology Sales Account Managers - Agency 32

SALES & MARKETING SALES & MARKETING PERMANENT In 2015, Hong Kong professionals can expect to see an average increase in salary of 5 percent, a slight increase on last year s 4.5 percent. However, when inflation is factored in, it is likely that Hong Kong can expect to see some of the lowest pay rises across Asia (ECA International). Key marketing trends for 2015 will likely result in companies across a range of industries strengthening teams focused on loyalty marketing, digital customer relationship management (CRM) and customer experience. Regional chief marketing officers (CMOs) are likely to spend more on technology than their chief information officer (CIO) counterparts, and they are becoming increasingly aware of the limitations that application management, security and compliance will place on their marketing agility. CIOs are likely to shift the focus to customer-facing business technology, which will require IT and marketing to meet in the middle with more coherent and integrated customer experience initiatives. KEY MARKETING TRENDS FOR 2015 WILL LIKELY RESULT IN COMPANIES ACROSS A RANGE OF INDUSTRIES STRENGTHENING TEAMS FOCUSED ON LOYALTY MARKETING, DIGITAL CUSTOMER RELATIONSHIP MANAGEMENT (CRM) AND CUSTOMER EXPERIENCE. Marketing is rapidly becoming one of the most technology dependent functions in business, and throughout 2014 there was increasing demand for technology savvy marketers. The Asia Pacific market now fully understands the importance of digital marketing. However, countries, such as Australia and Singapore, are way ahead of Hong Kong and Mainland China, which are still struggling with a vast skill shortage gap. The digital space will continue to be a large growth area in 2015. PUBLIC RELATIONS / COMMUNICATIONS Public relations will have a strong emphasis on content creation in 2015. As social media continues to evolve, businesses must increase their efforts in multi-channel content marketing and develop consistent and credible content on an ongoing basis. Digital marketing and visual content will become essential for any publicity campaign to gain popularity and effectiveness. Events continue to see steady growth as more businesses encourage the need to drive more corporate events to enhance their brand and business reputation. Communications marketing will continue to thrive as transparency and compliance becomes more vital for any business both internally and externally. Over half of businesses plan to increase internal communication budgets by an average of 17 percent in 2015. As technology continues to advance, half of the devices on corporate networks will be mobile for improved efficiency and productivity. 33

SALES & MARKETING TECHNOLOGY & MOBILE 2014 was a tough year for retailers in Hong Kong. Reports show that the first half of 2014 saw high end purchases such as watches and jewelry, drop by 40 percent. There were also decreases of 10-20 percent in other retail areas, such as electronics. Hong Kong retailers also suffered during the Umbrella Revolution, which saw Golden Week Sales fall by up to 50 percent for major retailers. Smaller retailers have reported up to an 80 percent loss on the previous year. Fortunately, November and December of 2014 saw retail sales regaining momentum. However, the market remains cautious for 2015. Ecommerce will become a much bigger piece of the retail market. THE TREND RESULTS IN AN OVERSUPPLY OF STRATEGIC BRAND MANAGERS SEARCHING FOR LONG TERM STRATEGIC PLANNING, NEW PRODUCT DEVELOPMENTAND BRAND EQUITY RELATED MARKETING ROLES. CONSUMER PRODUCTS Compared with other markets in Asia, the number of strategic brand marketing teams in Hong Kong decreased in 2014. This trend is expected to continue into 2015. The trend results in an oversupply of strategic brand managers searching for long term strategic planning, new product development, and brand equity related marketing roles. Fast moving consumer goods (FMCG) companies in Hong Kong also see the line between trade marketing and brand marketing disciplines becoming increasingly blurred, as brand managers find themselves executing pricing and promotion policies rather than brand development work. Local market roles continue to overtake regional roles in Hong Kong across all disciplines including brand management, trade marketing and sales. However, strategic regional roles continue to dominate major players in the alcohol and tobacco industries. WINE The wine industry remains as competitive as ever with many wine merchants, agents and distributors competing in a small space, due to favourable market conditions, including zero wine duties. Increasing prosperity in Mainland China and changes in lifestyle has seen demand for wine in Mainland China continue to increase. Hong Kong provides the perfect gateway to the mainland and in employment terms, this translates to rising demand for Mandarin speaking private sales account managers. Overall demand for talent across the wine industry is at an all-time high with merchants battling it out and paying inflated salaries to retain their top performers. 34

SALES & MARKETING RETAIL Mobile technology and innovation continues to be a key trend for 2015, as an increasing number of people swap their laptop and PCs for mobile devices and tablets. In order to stay competitive, companies need to have mobile versions of their standard website as part of their digital marketing strategy. The 3D printing industry is likely to grow. In the last couple of years leading 3D printing companies, like Stratasys, have opened regional hubs in Hong Kong. In 2015, we expect demand to exist in customer experience, customer advocacy and product innovation. THE 3D PRINTING INDUSTRY IS LIKELY TO GROW. IN THE LAST COUPLE OF YEARS LEADING 3D PRINTING COMPANIES, LIKE STRATASYS, HAVE OPENED REGIONAL HUBS IN HONG KONG. Over 50 percent of Hong Kong shoppers feel more confident when buying goods online. However, concerns remain regarding service and credibility. Hong Kong s ecommerce sector has been significantly easier to develop than Mainland China. This can be attributed to less government restrictions upon the sector and greater exposure to websites, such as Google and Facebook. As the ecommerce market expands, so does the technology market in retail. This can be witnessed in the current trend for wearable technology. Innovative brands like Fitbit bring brands closer to their consumers, enabling them to stay connected and access vast amounts of data. This ultimately assists their level of market insight. Luxury retailers in particular are starting to invest in wearable technology, aimed at tracking performance and health in a smart and savvy manner. AN VIX ERUDITI ELECTRAM. AN PUTANT CETERO PER. PORRO DOLORE NAM TE, QUANDO TANTAS APPAREAT EX VIS. IN 35

SALES & MARKETING MARKETING PERMANENT (HKD per month) ROLE ASSISTANT MANAGER MANAGER DIRECTOR MARKETING GENERALIST $23k - $33k $33k - $60k $60k - $70k+ CRM / LOYALTY $23k - $33k $33k - $58k $58k - $80k+ CONSUMER INSIGHTS $23k - $33k $33k - $52k $52k - $75k+ BRAND / PRODUCT MARKETING $27k - $35k $33k - $52k $52k - $85k+ TRADE / CHANNEL MARKETING $23k - $30k $33k - $45k $47k - $65k SALES PERMANENT (HKD per month) ROLE ASSISTANT MANAGER MANAGER DIRECTOR ACCOUNT MANAGEMENT $23k - $30k $33k - $50k $50k - $70k+ BUSINESS DEVELOPMENT $23k - $35k $35k - $55k $55k - $80k+ GENERAL MANAGER - - $100k - $150k MANAGING DIRECTOR - - $120k - $180k PR/ COMMUNICATIONS/ EVENTS PERMANENT (HKD per month) ROLE ASSISTANT MANAGER MANAGER DIRECTOR ACCOUNT MANAGEMENT (AGENCY) $30k - $45k $45k - $60k $60k - $80k+ EVENTS $15k - $35k $35k - $55k $55k - $80k+ PUBLIC RELATIONS $20k - $35k $35k - $55k $55k - $80k+ COMMUNICATIONS $15k - $30k $30k - $50k $50k - $100k+ RETAIL PERMANENT (HKD per month) ROLE ASSISTANT MANAGER MANAGER DIRECTOR RETAIL OPERATIONS $20k - $35k $35k - $60k $50k - $75k+ MERCHANDISING $25k - $40k $35k - $60k $60k - $80k+ VISUAL MERCHANDISING $25k - $35k $30k - $50k $50k - $75k+ BUYING MANAGER $25k - $35k $30k - $60k $50k - $70k+ 36

RISK & COMPLIANCE TOP 3 MOST IN-DEMAND POSITIONS: 1 2 3 AML Compliance Credit Analysis Regulatory Compliance 37

RISK & COMPLIANCE RISK & COMPLIANCE PERMANENT Total compensation for risk, legal and compliance professionals for 2014 will be flat or down in comparison with the previous year. Whilst 2014 was very active, revenues at most banks decreased across Asia. This will impact the bonus pool for risk, legal and compliance professionals. In 2014, average basic salary increases for lateral recruitment, particularly in compliance was 15-30 percent. For risk and legal roles, the increment was 10-20 percent. This trend is set to continue for 2015. Experts in the following areas can expect increases of more than 20-25 percent for lateral moves: regulatory compliance with strong Hong Kong Money Authority (HKMA) or SFC experience; product compliance (equities/fixed income, investment banking division); private banking compliance; financial crime compliance; and AML advisory (sanctions, anti-bribery and corruption (ABC)). BANKS ARE INCREASING EFFORTS TO RETAIN THEIR RISK, LEGAL AND COMPLIANCE STAFF. BONUSES AND INTERNAL SALARY INCREMENTS FOR 2014-2015 WILL BE HIGH ON THE AGENDA FOR DEPARTMENT HEADS AND REGIONAL HEADS. Following bonus payments between January and March (May for some Japanese and European Banks), replacement headcounts will need to be filled as of March and April. In 2015, we expect a higher volume of activity in recruitment at the end of the first quarter and beginning of the second quarter. Banks are increasing efforts to retain their risk, legal and compliance staff. Bonuses and internal salary increments for 2014-2015 will be high on the agenda for department and regional heads. RISK & COMPLIANCE CONTRACT Hong Kong professionals are seeing more advantages in accepting contract roles. They see it as an opportunity to move into a role with either a different job nature (i.e. operations to compliance or audit to risk management roles) or in a different industry (i.e. professional services firm (law firm or Big 4) into a bank or commercial industry). Basic salary increases for contract roles have been between 10-15 percent, and for some compliance roles we have seen a 20 percent increment for 6-12 month contracts in 2014. We expect the trend for recruiting in Hong Kong s contract market to remain unchanged in 2015. However, it is still difficult to convince individuals to move from a permanent to contract role in Hong Kong. In general, there is not a strong appetite for contract roles. Professionals, especially in risk, legal and compliance tend to be quite conservative and prefer stability and long-term career development if they are to move from one role to another. 38

RISK & COMPLIANCE RISK MANAGEMENT PERMANENT & CONTRACT (HKD per month) ROLE ANALYST ASSOCIATE/ AVP VP/ SR. MANAGER SVP/DIRECTOR SR. DIRECTOR HEAD OF RISK - - - $133k - $160k $170k+ MARKET RISK MANAGEMENT $30k - $40k $40k - $60k $70k - $110k $120k - $160k $150k+ MARKET RISK REPORTING $20k - $35k $40k - $60k $65k - $83k $83k - $110k $120k+ QUANTITATIVE ANALYSIS $35k - $50k $50k - $70k $75k - $120k $120k - $150k $150k+ OPERATIONAL RISK $20k - $30k $40k - $65k $70k - $108k $108k - $150k $160k+ CREDIT RISK ANALYSIS $30k - $40k $40k - $65k $70k - $108k $110k - $160k $160k+ TRADED CREDIT $30k - $40k $40k - $65k $70k - $110k $110k - $150k $160k+ COMPLIANCE PERMANENT & CONTRACT (HKD per month) ROLE ANALYST ASSOCIATE / AVP VP /SR. MANAGER SVP/ DIRECTOR SR. DIRECTOR HEAD OF COMPLIANCE - - - $125k - $170k $170k+ AML $25k - $40k $40k - $70k $70k - $100k $108k - $133k $135k+ PRODUCT SPECIFIC ADVISORY $25k - $45k $45k - $70k $70k - $110k $120k - $150k $160k+ TRAINING & COMPETENCE $20k - $30k $30k - $40k $60k - $90k $100k - $130k $130k+ CONTROL ROOM / RESEARCH $20k - $35k $40k - $60k $70k - $100k $110k - $140k $140k+ MONITORING / SURVEILLANCE $20k - $35k $40k - $60k $70k - $100k $100k - $120k $120k+ TAX COMPLIANCE $25k - $35k $40k - $60k $60k - $100k $100k - $120k $120k+ 39

SALARY SURVEY RESULTS Highlights: 1 2 3 The majority (54%) of respondents are from the banking and financial services sector The vast majority (72.8%) of professionals have received a pay increment in the last year Most (79%) of the Hong Kong professionals who responded say they have received or are expecting to receive an annual bonus for 2014 40

SALARY SURVEY RESULTS DEMOGRAPHICS Morgan McKinley surveyed professionals in Hong Kong for the Salary Survey in January 2015. Respondents are all professionals on the Morgan McKinley database and from our website morganmckinley.com.hk, who are engaged in a range of specialist sectors such as Financial Services, Technology, Retail/FMCG, Construction & Engineering, Public Sector, Media, Pharmaceutical, Healthcare and Legal with the majority of respondents from the Banking and Financial Services sector (54%) followed by the Retail/FMCG sector (11%). Just over half (53%) of the 441 professionals surveyed are male, 41 percent are female, while the remainder (6%) prefer not to say. They range in age from 20-51+ years with 8 percent in the 20-30 bracket, 67 percent in the 31-40 bracket, 22 percent in the 41-50 bracket and 3 percent in the 51+ bracket. Just over one third (34%) have more than ten years of experience in their current role or one that is similar. Professionals with 6-9 years of experience account for JUST OVER ONE THIRD (34%) HAVE MORE THAN TEN YEARS OF EXPERIENCE IN THEIR CURRENT ROLE OR ONE THAT IS SIMILAR. PROFESSIONALS WITH 6-9 YEARS OF EXPERIENCE ACCOUNT FOR 29 PERCENT, AND ALMOST ONE QUARTER (24%) HAVE BETWEEN 3-5 YEARS OF EXPERIENCE. 29 percent, and almost one quarter (24%) have between 3-5 years of experience. The remainder (12%) have 1-2 years of experience in their current or a similar role. The overwhelming majority (97.2%) of professionals are engaged in a permanent role and the remainder (2.9%) are contract or temporary workers. 41

SALARY SURVEY RESULTS Has your annual salary increased over the last twelve months (Permanent Employees)? The vast majority (72.8%) of professionals who responded say they have received a pay increment in the last year. Almost one quarter (24.3%) say their annual salary has stayed the same and the remainder (2.9%) say they have experienced a decrease in their annual salary. For those professionals who did experience a pay increase, the largest proportion (31%) of them experienced an increment of 5-8 percent. Twenty-nine percent saw a salary increase of between 1-4 percent and over one quarter (27%) experienced an increment of more than 13 percent. The remainder (13%) had a salary increase of between 9-12 percent. FOR THOSE PROFESSIONALS WHO DID EXPERIENCE A PAY INCREASE, THE LARGEST PROPORTION (31%) OF THEM EXPERIENCED AN INCREMENT OF 5-8 PERCENT. The majority (65%) of those who received an annual salary increase say this is based on meeting personal key performance indicators (KPIs). Over half (58%) say any salary increment is based upon group or company performance. Exceeding one s own personal sales target is cited as a reason by 11 percent of respondents. Other factors listed which influence an annual salary increase include a change in job, inflationary adjustments and promotion. 42

SALARY SURVEY RESULTS Have you received or are you expecting an annual bonus from your employer for 2014 (Permanent employees)? Most (79%) of the Hong Kong professionals who responded say they have received or are expecting to receive an annual bonus for 2014. Professionals who have not received and are not expecting a bonus, account for 15% of respondents. The remaining 6 percent say they do not receive annual bonuses at all. Forty-five percent of professionals who received a bonus in 2014, say this increased by 1-4 percent and a further 20 percent say their bonus rose by 5-8 percent and 15 percent experienced an increase in bonus of between 9-12 percent. Professionals who saw a bonus increase of more than 13 percent accounted for 20 percent of respondents. FORTY-FIVE PERCENT OF PROFESSIONALS WHO RECEIVED A BONUS IN 2014, SAY THIS INCREASED BY 1-4 PERCENT AND A FURTHER 20 PERCENT SAY THEIR BONUS ROSE BY 5-8 PERCENT AND 15 PERCENT EXPERIENCED AN INCREASE IN BONUS OF BETWEEN 9-12 PERCENT. For those who received an annual bonus increase, this was based on group or company performance (70%), as well as meeting personal KPIs (69%), according to the vast majority of respondents. Exceeding one s own personal sales target was cited as a reason by 12 percent. Other reasons given, upon which increments in annual bonus payments are based, include a promotion or taking on a new role. 43

SALARY SURVEY RESULTS Has your temporary/contract rate or salary increased in the last twelve months? The majority (77%) of contract and temporary workers surveyed say their rate or salary has increased in the last year. The remaining 23 percent say their rate or salary remains unchanged. Forty percent of the temporary and contract professionals, who received a pay increment in the last twelve months, say this was between 5-8 percent. Thirty percent say they experienced an increase of 1-4 percent and a further thirty percent say their salary or rate of pay rose more than 13 percent. MOST OF THE TEMPORARY AND CONTRACT PROFESSIONALS, WHO RECEIVED AN INCREMENT IN PAY, SAY THIS IS BASED UPON GROUP OR COMPANY PERFORMANCE (70%) AND MEETING PERSONALS KPIS (60%). Most of the temporary and contract professionals, who received an increment in pay, say this is based upon group or company performance (70%) and meeting personals KPIs (60%). Ten percent say that any increases in rate or salary are as a result of exceeding one s own personal sales target. PLACE GRAPH HERE 44

SALARY SURVEY RESULTS As part of your remuneration, what are the benefits in your current package? The bulk of Hong Kong professionals who responded, say they currently receive life/health insurance (78%), holidays (78%), an annual bonus scheme (71%) and maternity/paternity leave (55%) as part of their current remuneration package. Almost half receive training (48%) and a pension plan (45%). Other benefits that are included as part of professionals remuneration packages include laptop/ computer (38%), mobile phone (33%), flexible working arrangements (20%), paid study leave (20%), share incentive/option scheme (19%), gym membership (8%), as well as overtime pay, housing allowance, discount on company products, expat allowance and club membership. THE BULK OF HONG KONG PROFESSIONALS, WHO RESPONDED, SAY THEY CURRENTLY RECEIVE LIFE/HEALTH INSURANCE (78%), HOLIDAYS (78%), AN ANNUAL BONUS SCHEME (71%) AND MATERNITY/PATERNITY LEAVE (55%). PLACE GRAPH HERE 45

SALARY SURVEY RESULTS What remuneration benefits are important to you? An annual bonus scheme (72%) and holidays (67%) are seen by the majority of respondents as the most important remuneration benefits. Half (50%) of the professionals answered that life/health insurance is an important benefit. Thirty-eight percent of Hong Kong professionals say flexible working arrangements are important and just over one quarter of survey respondents see training (26%) and pension schemes (28%) as notable fringe benefits. Just over one fifth (21%) say a share incentive/option scheme is important. AN ANNUAL BONUS SCHEME (72%) AND HOLIDAYS (67%) ARE SEEN BY THE MAJORITY OF RESPONDENTS AS THE MOST IMPORTANT REMUNERATION BENEFITS. Other benefits that were seen as important by some of the professionals surveyed include mobile phone (8%), laptop/computer (7%), maternity/paternity leave (17%), paid study leave (15%), gym membership (9%), as well as rental allowance, business travel and work/life balance. Some respondents say a basic salary is more important than any of the fringe benefits offered as part of a remuneration package. Just one percent of those who answered say they receive no benefits at all. PLACE GRAPH HERE 46

SALARY SURVEY RESULTS Do you think female employees in your company are earning less than male employees in the same role? The majority (60%) of Hong Kong professionals who responded say that women are not earning less than their male counterparts in the same role. However, 17 percent say that female workers are earning less than male employees in the same role. Almost one quarter (23%) say they are unsure. THE MAJORITY (60%) OF HONG KONG PROFESSIONALS WHO RESPONDED SAY THAT WOMEN ARE NOT EARNING LESS THAN THEIR MALE COUNTERPARTS IN THE SAME ROLE. PLACE GRAPH HERE 47

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