Salary survey: Risk managers' bonuses disappoint

Adrian Marples, a consultant at the search firm Sheffield Haworth, said banks' failure to manage expectations has left many risk managers angry: 'People were expecting a 20% to 50% increase on bonuses compared to 2002, as well as salary increases and promotions.

But cost controls have continued and for many people rises have been only incremental.'

Marples said he surveyed 40 hiring managers and individuals at 20 banks in London, mainly bulge bracket and second tier companies. While some staff had received a 50% increase in bonus, as well as promotions and 15,000 salary rises, many others received bonus rises in low single figures.

He said: 'There are vastly different stories across the City of London. People in similar jobs have been paid very differently. A lot of people feel they have simply not been paid enough.'

The results suggested that a director working in the financial institutions risk group at an investment bank could expect a typical salary of 80,000 to 120,000, plus a bonus of 40%-100%.

A vice president in the same area could expect a salary of 55,000 to 90,000, plus a bonus of 20% to 100%. An associate vice president could expect a base salary of 45,000 to 60,000, plus a 15% to 40% bonus.

Packages were similar for people working in credit risk, though the upper limit for directors' salaries was marginally higher at 125,000, while that for vice presidents was marginally lower, at 80,000.

In some cases, Marples said banks chose to reward associate vice presidents in risk with higher salaries and steady bonuses.

About 10% of junior staff were given a 10,000 to 15,000 salary rise, he said. 'Salaries have been frozen for two years. Some firms have decided to raise them to match current market rates for new hires.'