Frozen pay and smaller bonuses for Irish financial sector

25 November 2008

3 minute read

Frozen pay and smaller bonuses for Irish financial sector

Irish financial sector workers will face a year of static salaries and shrinking bonuses in 2009, according a new salary survey.

The survey, the latest from recruiters Brightwater, understandably paints a quite different picture to this time last year, when those in financial services were experiencing rapid pay hikes as firms tussled over a limited talent pool.

The good news is that salaries aren't likely to deteriorate, but there isn't a sector within the financial industry that should expect any significant pay hike, according to the survey.

Estelle Davis, manager of the financial services division at Brightwater, tells us: "We have heard of a number of firms who have told their staff that while salaries won't be decreasing, their bonuses will certainly be smaller than last year."

Within accountancy in financial services, for instance, bonuses have typically been 8-20% of salary for those with up to five years' experience, and 20-35% for those with more. You should not expect the same next year.

Entry-level accountants could actually earn less next year. This is in contrast with 2007, when entry-level candidates were enjoying big pay hikes. The average salary now is €50k-€55k, down from around €60k in 2007.

In the fund servicing space, only the management level has seen any pay appreciation. A senior fund accounting manager can now expect to earn €70k-€90k, up from €68k-€85k last year.

The banking sector is experiencing tumbling bonus levels, reduced levels of recruitment and frozen salaries, according to the survey. However, those with compliance, risk management and portfolio management skills remain in demand.

Joanne McCarthy, manager of the banking division at Brightwater, says that some firms are viewing the downturn as a chance to bag top sales people, and those with headcount freezes are taking on experienced risk professionals and credit analysts on a contract basis.

"Where there have been salary increases, there certainly haven't been any dramatic surges," she says.

What are you worth?

FUND SERVICES

Senior fund accounting manager €70-90k

Fund accounting/admin manager (3-5 yrs' exp.) €55-65k

Fund accounting supervisor/team leader €45-55k

Senior fund accountant (2 yrs' exp.) €35-45k

Fund accountant (1 yr's exp.) €30-35k

Fund accountant/administrator €27-30k

Head of shareholder services €90-110k

Shareholder services manager €55-75k

Senior shareholder services administrator €35-55k