Risk Managers Keep an Eye on Rising Pay

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Risk management professionals working in capital markets saw their pay rise almost 10% last year, according to a new survey.

Average pay for risk managers working in capital markets in investment banks, commercial banks and other financial institutions, rose 9% to $374,000 in 2004.

Cash bonuses accounted for 30% of the total, and non-cash bonuses such as stock and options accounted for 25%, with salaries accounting for the remainder.

The survey covered more than 300 risk professionals at firms operating in the capital markets and was conducted by Risk Talent Associates, an executive search firm.

Michael Woodrow, Risk Talent president, says rising pay reflected strong demand: 'A lot of firms have been adding staff. New positions are being created to do deal with regulatory issues and managing value at risk (VAR).'

Pay last year rose most rapidly for junior staff, the survey found. Associates and senior associates saw increases of 14%, taking total compensation to $128,200. Vice presidents saw pay rise 13%, to a total $378,800.

Managing directors fared the worst on a percentage basis, with pay rising just 3%, but dollar-value packages came in at a healthy $697,300.