BANKING SALARY & BONUS GUIDE 2016

BANKING SALARY & BONUS GUIDE 2016

MESSAGE FROM CEO WHAT IF EVERY DAY WE WOKE UP EXCITED ABOUT GOING TO WORK? WHAT WOULD BE THE IMPACT ON BUSINESSES’ COMPETITIVENESS IF WE WERE ENGAGED IN OUR JOBS? WHAT WOULD THE IMPACT BE ON OUR PERFORMANCE LEVELS IF OUR EMPLOYERS LOOKED AFTER US?

Questions I love to ask, as I remain puzzled that time and again we hear

And of course, are we well and correctly rewarded? Do we feel valued,

stories of a failure to look after the people inside the organisations we all

does our annual income reflect our contribution, and are we deserving

work in.

of more? Questions that hopefully this banking and bonus guide will help you to answer.

On average we spend 90,000 hours at work during a lifetime… it has to be

GUY HAYWARD CEO – GOODMAN MASSON

a place that challenges, engages, inspires and makes us happy. When it

By taking contributions from the 400 finance professionals who register

isn’t such a place we actively seek it elsewhere.

with us every week, we hope it does.

There are many factors that impact this. Do we have the right tools and

Enjoy a fabulous 2016.

infrastructure to be able to do a great job? Do we have the opportunity to

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professionally develop and do we work in an environment that we want to

My warm regards,

be part of and don’t want to leave?

Guy

F: +44(0)20 7336 7722

E: [email protected]

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CONTENTS

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Overview

Banking Sectors

Bonus Guide

Overview

Banking Internal Audit

Introduction

Banking Operations

Investment Banking

Compliance & Financial

Retail & Wholesale Banking

Crime

Buyside

Energy & Commodities

Other Financial Services

Finance & Accounting

Conclusions

Front Office Product Control & Valuations Projects & Change Prudential Regulation & Risk Consulting Risk Management Tax

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BANKING SALARY & BONUS GUIDE 2016

ABOUT GOODMAN MASSON Based in London and Düsseldorf, we hold annual revenues exceeding £35 million and operate purely within the specialism

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of Finance; covering Accounting, Tax, Treasury, Internal Audit, Risk, Change, Operations, Compliance, Actuarial, Corporate

OVERVIEW

Finance, Management Consultancy and Public Practice.  Goodman Masson is a preferred supplier to over 320 companies across the UK and Ireland, including 73

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BANKING SECTORS

of the FTSE 100 corporations. Building an environment for our employees to enjoy and progress remains central to everything we do. We call this ‘The Experience®’ and in January 2014 the UK Intellectual Property Office recognised ‘The Experience®’ as a registered

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BONUS GUIDE

trademark... formal recognition of the uniqueness of our employee engagement philosophy.  WE ARE DELIGHTED WITH OUR RECENT AWARDS: • ‘The Best Recruitment Company to Work For’ - Recruitment International UK: 2015

WITH A TEAM OF OVER 150, GOODMAN MASSON IS THE LARGEST FINANCIAL RECRUITMENT BUSINESS IN LONDON AND HAS BEEN RECRUITING PROFESSIONALLY QUALIFIED ACCOUNTANTS AND OTHER FINANCE PROFESSIONALS FOR OVER 20 YEARS.

• ‘Most Effective Pay & Benefits Strategy’ - Recruiter: Investing in Talent: 2015 • ‘Most Innovative Benefit’ - Recruiter: Investing in Talent: 2015 • ‘Most Effective Team Motivation Event’ - Recruiter: Investing in Talent: 2015 • Winner of ‘Best Workplaces - Medium Category’ - Great Place to Work: 2015 • ‘Delivering Excellence in Wellbeing’ - Great Place to Work: 2015 • ‘The Best Recruitment Company to Work For’ - Recruitment International UK: 2014 • ‘Best Workplace Environment’ - Recruiter, Investing in Talent: 2014 • ‘Most Innovative Benefit’ - Recruiter, Investing in Talent: 2014 • ‘Most Effective Pay and Benefits Strategy’ - Recruiter, Investing in Talent: 2014 • ‘Most Inspiring Recruitment Leader’ - Recruiter, Investing in Talent: 2014  • ‘Best Large Recruitment Company to Work For’ - Recruiter Awards: 2013 & 2014 • ‘Best Professional Services Recruitment Company’ - Recruiter Awards: 2011, 2012 & 2014 • ‘Best Reward Strategy aligned to Business Strategy’ - Employee Benefits Awards: 2013 • Top 10 in The Sunday Times ‘100 Best Small Companies to Work For’ - 2011 & 2012 • APSCo ‘Recruitment Company of the Year’ - 2011

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OVERVIEW

OVERVIEW LOOKING BACK ON 2015, WE CAN REFLECT ON A YEAR THAT WAS FOR THE MOST PART VERY POSITIVE, WITH STRONG TAIL WINDS SUPPORTING THREE EXCELLENT QUARTERS FOR MOST BUSINESSES ACROSS THE BANKING AND FINANCIAL SERVICES LANDSCAPE. WE THEN EXPERIENCED A NUMBER OF NEGATIVE FACTORS THAT REALLY BEGAN IN THE SECOND HALF OF THE YEAR, AND ULTIMATELY IMPACTED ON MANY BUSINESSES IN A FAIRLY NEGATIVE FOURTH QUARTER THAT CONTINUED TO CAST A SHADOW INTO 2016.

In terms of the positive first half of the year, our clients enjoyed benign

This final quarter of 2015 saw a steep fall in the stock market, which

market conditions with strong performances, and ultimately record highs

combined with most banks producing a pretty dire set of results in very

seen in the Equity markets as well as the strongest year for M&A revenues

challenging conditions, saw us end the year very much in the shadows.

since before the credit crunch. The general feeling of positivity also

Some banks began to show genuine concern of another recession, given

enhanced consumer confidence, and initially the Oil price fall was seen

the various factors driving down both confidence and profitability. It

as positive to the wider economy and only limited in its effect on the core

is true that hiring always drops off steeply in the final months of any

Natural Resources sector in terms of profits and hiring.

year, but it’s usually combined with talk round the likely activity for the following year. It was noticeable that a much more negative and cautious

The hiring levels and candidate demand across Financial Services and

tone emerged towards our client’s views on the markets in 2016.

Banking remained at the high levels we began to see in 2014, and our clients continued to hire across the board in both Front, Middle and

Particularly concerning was the very poor results many of the Investment

Back office positions. It is true that the fundamental drivers behind this

Banks saw for the last quarter, with a number posting substantial losses.

demand were different in each vertical, with Regulation and Compliance

For the first time in a number of years we saw wholesale redundancy

driving continued and aggressive hiring across these disciplines, whilst

programmes emerge from a number of firms. The shadow of the Brexit

the Front Office hiring was linked to the high demand from the booming

vote is also a factor that is likely to only enhance uncertainty in the

M&A markets and associated financing needs.

market at least until summer 2016.

In the wider UK, the election came and went with a surprising ma jority for

To date, 2016 has definitely seen a slowdown in hiring demand and

the Conservative government that also drove confidence, given the likely

a much more cautious tone emerge from most of our clients. Bonus

‘anti-business’ policies espoused by the Labour Party. We certainly saw a

season is now upon us, but the talk is very much of reduced pools and

bounce upwards as this lurch to the left was rejected by UK voters.

strong headwinds ahead as firms look at ways to continue to drive both profitability and RoE in much choppier waters. The overall outlook for the

All of these factors meant we entered the second half of 2015 with most

global economy does appear to remain challenging and, whilst it is not

firms enjoying strong profitability, which continued to flow into high levels

yet time to panic, we do foresee a more challenging environment for pay

of hiring demand.

and bonuses in 2016 than we would have expected at the time of our last survey twelve months ago.

However, the latter stages and end of 2015 saw a huge turnaround in sentiment as well as a largely negative impact on profitability and overall confidence. China continued to see demand for resources fall, and the

Richard Hoar - Director, Banking & Financial Services

cold began to infect the global markets, with share prices beginning to show vulnerability. The Oil price remained low and again we saw confidence in a recovery start to affect the markets more widely, with the warmer climate of the earlier part of the year well and truly blown away as we moved into Q4.

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BANKING SECTORS • • • • • • • • •

BANKING INTERNAL AUDIT BANKING OPERATIONS COMPLIANCE & FINANCIAL CRIME ENERGY & COMMODITIES FINANCE & ACCOUNTING FRONT OFFICE PRODUCT CONTROL & VALUATIONS PROJECTS & CHANGE PRUDENTIAL REGULATION & RISK CONSULTING • RISK MANAGEMENT • TAX

BANKING SECTORS

BANKING INTERNAL AUDIT 2015 WAS THE BUSIEST YEAR ON RECORD FOR BANKING AND FINANCIAL SERVICES INTERNAL AUDIT. WITH A 40% INCREASE IN LIVE VACANCIES, FROM AN ALREADY BUSY 2014, WE SAW UNPRECEDENTED GROWTH AND NEW CAREER OPPORTUNITIES FOR ALL CANDIDATES IN THE MARKET.

It is important to recognise the increased number of vacancies was a

The overall candidate shortage has also generated new opportunities

result of growth and not purely replacing leavers. This resulted in a lack

for non-financial services candidates, particularly at the AVP level. Hiring

of candidates in key areas, with some vacancies remaining open for

managers have recognized that experienced Internal Auditors from

more than six months at a time!

Commerce & Industry are earning far less than their peers in banking. This potentially untapped resource has allowed banks to secure talented

A handful of crucial areas have been a constant challenge for the

Internal Auditors, who only require technical development, for far less

banks over the years, in which candidate demand remained high. These

than a Banking Auditor. We are anticipating an increase in Commerce

include the usual suspects of Capital Markets professionals (with specific

Auditors moving into Financial Services during 2016, as not all our

asset class knowledge), Risk Internal Audit, Compliance Audit, and

clients are currently sourcing from this candidate pool.

Technology and IT Audit, particularly at the VP level. Hiring managers have been pushing to find experienced Internal Auditors with hands

With high growth and high demand for talent, basic salaries in the

on technical knowledge of their departments coming from similar

industry have increased. Though bonuses have typically remained flat,

organisations.

we have seen a significant increase in base salaries of more than 20% in new offers or buy backs. A newly qualified, Big 4 professional should

SME business professionals moving into Internal Audit for the first time

expect anywhere between £55,000 - £60,000 per annum in base salary.

from business roles are still on the up. Though this is nothing new to the

Keep in mind that prior to qualifying, Big 4 professionals are on £34,000

industry, we are now seeing new growth areas. What were once teams of

- £36,000 per annum, nearly doubling their salaries within the same

only 1 or at times none, have now increased to 5 or 6 specialist Auditors.

calendar year!

These include Reg Reporting specialists, Prudential Compliance, Product Controllers, Third Party Risk, and professional practices (Quality

“Buy-Backs” are still prevalent as the war for talent continues across

Assurance).

the banks. Hiring managers know it is far more convenient to keep their Auditors and offer them new revised packages, than go through the

In addition to all of these new areas of growth, a number of large Tier

pain of hiring externally and paying agencies fees. It is really important

1 banks have been ‘encouraged’ by the regulator to increase their

for hiring managers to really understand the motivations and drivers

headcount and bank-wide coverage of their Internal Audit division

of potential future employees, and they are heavily reliant on their

globally. With London being the central hub of global banking, this

recruitment partners to really provide this insight.

resulted in a high volume of these positions being based in the City and Canary Wharf. The top tier brands including Barclays, Citi, and Deutsche Bank all experienced growth in 2015.

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BANKING SECTORS

BANKING INTERNAL AUDIT Salary

Role

Chief Auditor / MD

£150,000+

Head of Audit / Director

£120,000 - £150,000

Senior Manager / SVP

£90,000 - £120,000

Associate Director / VP

£75,000 - £90,000

Manager / AVP

£55,000 - £75,000

Associate

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