Salary survey: Compliance bonuses still healthy

Bonuses for compliance staff held up well in 2002 despite a deteriorating job market, according to the recruitment firm IMS.

Average bonuses in the sector were 8% of salary, IMS found in a survey of 100 companies and 300 individuals based in London. The figure masked large differentials, with many junior staff getting 4% or so and bonuses of up to 50% at the senior end.

Teresa Nixon, a consultant at IMS, said bonuses appeared to have dropped only slightly from 2001, while most other sectors experienced larger falls. 'The image of compliance staff has improved inside banks,' she said.

'Even though compliance is a cost centre, employers are taking it more seriously.' Nixon said the possibility of compliance inspections by the Financial Services Authority, under regulations issued 18 months ago, was behind the change.

Staff with three years experience were paid bonuses of 8%-10%, rising to 10%-15% with five years experience. The highest bonuses were often paid to senior staff who specialised in particular products, such as fixed income.

'If their team does well, that can be reflected in their bonus,' said Nixon.

Leading US companies are also known for paying high bonuses at the senior end, she said. The survey covered investment banks and fund managers.

Nixon said many compliance staff were unemployed following layoffs last year. But the job market had shown signs of improvement in recent weeks.

An earlier survey by IMS in March showed compliance officers with five years experience and knowledge of specific products typically earned salaries of 60,000 to 80,000.

Heads of compliance - with at least eight years experience and likely to be a lawyer or accountant - earned 80,000 to 100,000.