Salary survey: IT pay slashed by a third

IT staff have suffered pay cuts of up to one third as banks and fund managers have reined in spending, a new survey shows.

A senior technical architect role that was worth 300,000 (€429,000) in salary and bonus in 2001 typically commanded 200,000 last year, according to the poll by search firm Thomson Keene.

Andrew Keene, director of Thomson Keene, said: "Global projects such as straight-through processing have been cut back. They might deliver cheaper trading in five years, but banks are focusing on short-term budgets."

Mid-level executives were hit hardest. Keene said: "The investment banks have removed layers of management and there seems to be an excess of supply for a small number of roles."

Packages for programme managers fell less steeply, from 180,000 to 150,000. The figures are based on salary cuts that staff accept when they change jobs - those staying in the same role normally keep the same salary. Bonuses have fallen whether staff stay or move.

Keene said many employees were unwilling to change jobs, even if they could, because of market uncertainty. Niche hiring was continuing in areas that were profitable, such as front office systems for fixed income.

At senior levels staff often changed jobs for the same salary. Although bonuses have fallen since 2001, a global head of IT can still command a 1m package.

Thomson Keene spoke to more than 70 investment banks and fund managers, as well as around 100 individuals, for the London-based survey.