Banking and Finance UK_0

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Salary Survey 2010Banking and Financial Services


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Market Outlook

The second half of 2009 saw staffing levels begin to improve as a cautious sense of optimism returned to the market.

2010 will remain challenging for the general business climate in the UK. Despite this, we believe the banking and financial services sectors are showing some strongsigns of a return to form. This optimism however may be tempered by the pace at which the general economy picks up during the second half of the year and by the

impact on the broader economy of the forthcoming general election.

Our role forecast for the year is roughly 53,000, compared to last year where there were approximately 42,000 roles released a rise of 26%. During the first quarter 2010

we have seen new roles rise by almost 121% and new candidate registrations rise by 21% over

the same period for 2009. This imbalance bodes well for candidates intending to find newopportunities.

The Candidate Liquidity diagram in Figure 1 shows the relationship between new candidate

registrations compared against new roles. Contrary to the general market perception, the

mid to senior level candidate pool decreased during 2009. We believe this is the result of two

factors present over that period: 1) the importance organisations placed on the retention ofkey skills during 2009; and 2) a general reluctance by candidates to move from the securitypresented by their existing employers.

While employers have been strategic in their approach to retention, many are operating under a

misconception when it comes to the ease with which new staff can be recruited. More recently

we have begun to see early signs that more candidates are returning to the market. However

we feel most of the surge in new registrations during Q4 2009 is the release of pent up demand

for moves from candidates who were unhappy in their existing organisations.

As the year progresses, we expect to see the candidate market stabilising after a brief period

where candidate demand is likely to outstrip supply, this will lead to a short war for talent during the second and into the third quarters. We are already seeing talent

shortages within some specific skill sets.

Whether or not the war for talent returns will depend on firms ability to incentivise and retain existing staff throughout 2010. Our view is that new candidate registration

will remain patchy and be influenced to a large extent by the number of firms in the market that fail to get retention right.

Accordingly, our forecast for the next 12 months is for a continued increase in hiring activity off the back of a sustained improvement in confidence. Those who change

jobs can expect modest increases although an increasingly significant factor will be the opportunity for progression.

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Astbury Marsden Salary Survey

Figure 1

Candidate Liquidity

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Northern RockLehmans

War for Talent

2010 Forecast

NewRegistrationsvNewRoles


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Finance

Astbury Marsden Salary Survey - Finance

2009 ReviewWith a number of people having been made redundant during 2008/9, many

experienced candidates accepted lower salaries in order to secure a role. Of thebonuses awarded during the year, most were paid with a large element of either

deferred shares or deferred cash to encourage tenure. It also became common

to see meaningful bonuses paid only at VP and above.

The second half of 2009 brought a more optimistic outlook, however, despite a

renewed appetite to hire, candidates remained cautious. This was largely the by-product of unsettled market conditions and sensational headlines. By the fourth

quarter employed candidates became disinclined to move - especially in the

absence of guaranteed bonuses. As a result, this candidate shortage led to us

seeing some salary increases through the year.

Further, with regulators placing pressure on banks to move away from largebonus schemes towards fixed compensation, base salaries have continued toincrease into 2010.

Outlook for 2010The start of the year saw a continued increase in the flow of accounting roles

especially within the controlling functions.

Confidence appears to be returning to the London market with regulatoryaccounting and equities product control teams amongst the first areas to actively

hire this year. Astbury Marsdens role flow is now at its highest levels for 20

months and the expectation is that this will continue at least for the first half, as

banks take advantage of an increasingly positive candidate pool.

However, candidates should not expect historically large bonuses and should

anticipate a continued focus on adjusting base salaries.

In this climate, candidates should be cognisant that companies will struggle to

justify large cash bonuses. As the year progresses we anticipate a shift in

candidates desire for higher earnings to be increasingly replaced by the desire

for job security and progression.

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Investment Banking


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Job TitleBase

Min ()Base

Max ()BonusMin ()

BonusMax ()

Financial Accounting

Associate 45,000 60,000 0 8,000

AVP 52,000 75,000 0 20,000

VP 70,000 95,000 7,000 40,000

Director 90,000 115,000 15,000 75,000

Accounting Policy/Technical Accounting

Associate 50,000 60,000 0 8,000

AVP 55,000 80,000 3,000 20,000

VP 75,000 95,000 15,000 50,000

Director 90,000 115,000 35,000 80,000

Legal Entity Control

Associate 45,000 60,000 0 80,000

AVP 52,000 75,000 0 20,000

VP 70,000 95,000 7,000 50,000

Director 90,000 115,000 15,000 80,000

Management Information/Financial Analysis

Associate 45,000 60,000 0 8,000

AVP 55,000 75,000 0 20,000

VP 70,000 95,000 7,000 50,000

Director 90,000 115,000 20,000 80,000

Job TitleBase

Min ()Base

Max ()BonusMin ()

BonusMax ()

Product Control (flow & cash)

Associate 50,000 60,000 0 8,000

AVP 65,000 75,000 0 20,000

VP 75,000 95,000 5,000 50,000

Director 90,000 120,000 20,000 90,000

Product Control (exotics & hybrids)

Associate 50,000 60,000 0 8,000

AVP 65,000 80,000 0 20,000

VP 80,000 95,000 15,000 65,000

Director 95,000 125,000 30,000 100,000

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FinanceInvestment Banking


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2009 ReviewHiring volumes across the Investment Management sector during 2009 were

significantly down on previous years with most asset managers reducingheadcount across their finance functions. As the year progressed hiring became

more focussed on addressing niche skill sets such as specialist regulatory

knowledge, cost control or analytical MIS skills.

During the year, salaries softened as the majority of organisations implemented

pay freezes. Bonuses were also substantially down on previous years with anumber of employees receiving no bonus at all.

Outlook for 2010Fourth quarter 2009 results brought

increasingly positive news for many of the

large Investment Management firms.

Whilst the outlook for 2010 remains difficult

to predict, the rush on redemptions seems

to have slowed. Many asset managers are

returning to positive performance and

attracting new investment mandates in the process.

Fund Management firms are also becoming more sophisticated in their demandfor management information. Accordingly cost control and management

reporting are becoming increasingly sought after skill-sets. We also anticipate

further migration of product controllers away from investment banks toward fund

accounting and control teams within hedge funds.

Job TitleBase

Min ()Base

Max ()BonusMin ()

BonusMax ()

Management Accountant

0-1 yrs PQE 45,000 55,000 0 10,000

1-2 yrs PQE 48,000 60,000 0 15,000

3+ yrs PQE 60,000 80,000 7,000 80,000

8+ yrs PQE 75,000 110,000 15,000 100,000

Financial Control

0-2 yrs PQE 48,000 55,000 0 7,000

2-5 yrs PQE 55,000 80,000 5,000 50,000

5+yrs PQE 70,000 110,000 15,000 100,000

Fund Accountant

0-1 yrs PQE 45,000 55,000 0 10,000

1-2 yrs PQE 45,000 65,000 0 15,000

3+ yrs PQE 55,000 85,000 5,000 55,000

Hedge Fund Product Control

3+ yrs PQE 60,000 85,000 0 85,000

8+ yrs PQE 85,000 110,000 15,000 150,000

Finance Director/Chief Finance Officer

8+ yrs PQE 90,000 150,000 90,000 1,000,000+

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Many asset managers

are returning to positiveperformance andattracting new mandatesin the process.

FinanceInvestment Management


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Corporate Finance, Mergers & Acquisitions


2009 ReviewThe first half of 2009 was an extremely difficult period across the corporate

finance market. Claims the bonus culture had come to an end amidst the turmoilof the global financial crisis resulted in a number of banks considerably

increasing base salaries to incentivise their senior staff.

Despite this, bonuses paid out to Analysts

in the summer months were only marginally

lower than they had been in 2007. Onaverage, people were collecting between

70% and 80% of their base with some high

performing Analysts receiving up to 100%.

At the other extreme were a number of troubled banks who paid little or no bonus.

The second half of 2009 saw the M&A market begin to pick up. Confidencereturned to the market, lending increased, lag times reduced and deals started toclose. This led directly to increased hiring within the banks.

Generally speaking, bonuses in 2009 were respectable despite the market being

in the early stages of recovery. Further challenges were laid down by the

government to limit bonuses by implementing a one-off tax on bank bonuses.

Some firms dealt with this by paying the tax directly (hence reducing profits)

while others decided to spread the impact across their global bonus pool.

On the whole, during the year most banks chose to adopt a revised approach to

bonuses by either deferring bonus payments or by paying a larger proportion of

bonus pools in stocks and shares.

Outlook for 2010The consensus is that 2010 will see the commencement of a period of strongergrowth and the market is already looking at some exciting deals, such as Kraft-

Cadbury, coming to the table.

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Job TitleBase

Min ()Base

Max ()BonusMin ()

BonusMax ()

Associate 2009 60,000 70,000 0 70,000

Associate 2008 70,000 80,000 0 80,000

Associate 2007 80,000 90,000 0 100,000

Associate 2006 65,000 100,000 0 150,000

VP 2008 70,000 110,000 0 200,000

VP 2007 75,000 120,000 0 250,000

VP 2006 80,000 130,000 0 300,000

Director 1 85,000 150,000 0 350,000

The private equity market also appears to be showing some signs of life. Newfunds are being raised as we write and a number of firms are looking for

opportunities to make investments at a discount before the market fullyrecovers.

As recovery continues to gather pace and as bonuses are paid, hiring across

investment banks and boutiques will become more active.

As a result of down-sizing during 2008/9 many banks will aim to re-build theirM&A capability. This will be set against a background of a smaller pool of

experienced, quality candidates to choose from. We predict the war for talent

is likely to be back on the board room agenda by the end of 2010.

The second half of 2009saw the M&A recruitmentmarket begin to pick up.


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Internal Audit

Astbury Marsden Salary Survey - Governance

2009 Review2009 saw a noticeable lull in hiring in the Internal Audit market space. That said,small pockets of activity remained within retail and wholesale banking and ininsurance.

Audit teams within large banks suffered fewer redundancies than other

governance functions. Further, audit bonuses compared favourably to

operational risk and compliance units. As a result, the number of internal audit

candidates actively seeking new roles during the year was comparatively low.

Our research showed that a number of firms

cash bonus payments for 2009 were split over a

period of between 1 and 2 years. In other cases,

bonuses were given partly as deferred stock or

shares instead of cash.

While many audit candidates continued to register throughout the year, the

motivation to do so appeared to be as a back up plan with most remaining

cautious about moving. Those seriously looking tended to take less interest

in bonus schemes than in previous years and sought roles which secured an

improved basic salary.

Outlook for 2010During the first quarter of 2010, we have witnessed an increase in the number

of live vacancies across all areas of investment banking. We expect a broader

spread of banks to step up their recruitment processes during the year.

In this context the outlook looks positive for Internal Audit this year. Candidates

should expect to see improved prospects to move right across the financial

services industry.

Job TitleBase

Min ()Base

Max ()BonusMin ()

BonusMax ()

Newly Qualified 45,000 65,000 0 2,000

1-3 yrs 50,000 75,000 0 2,000

3-5 yrs 55,000 80,000 3,000 7,0005-7 yrs 65,000 90,000 15,000 30,000

7+ PQE 80,000 130,000 20,000 80,000

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The outlook lookspositive for InternalAudit in 2010.


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Compliance


2009 ReviewNot surprisingly 2009 was a challenging year for the compliance recruitmentmarket. The traditional demand that occurs at the start of each year was replacedwith recruitment freezes and redundancies.

This status quo continued into the summer and new vacancies failed to keep

pace with the growing number of forced entrants into the market. However, by

the start of the third quarter, the rate of redundancies noticeably slowed and

there was a significant pick up in hiring across all areas. This was not unique tocompliance and was shared across many areas of corporate governance.

Candidates with monitoring and

surveillance experience remained

highly sought after and there was a

demand for candidates with centralcompliance experience asorganisations looked to build their

Control Room functions.

Outlook for 2010The notable demand for compliance specialists that was evident in the second

half of 2009 should continue and it is anticipated that candidates with monitoring

and surveillance experience will remain in high demand.

Compliance and regulatory reporting departments are likely to grow on the back

of potential regulation from the FSA which requires more rigorous reporting.

However, the need for additional resource to address the affects of increased

regulation may not be permanent and we expect to see an increase in the

number of temporary and contract hires made in this area.

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Job TitleBase

Min ()Base

Max ()BonusMin ()

BonusMax ()

Compliance Assistant 25,000 35,000 1,000 2,500

Compliance Associate 35,000 45,000 3,000 6,000

Assistant Compliance

Manager

45,000 60,000 5,000 10,000

Compliance Manager 50,000 65,000 8,000 20,000

Senior Compliance

Manager

55,000 75,000 10,000 20,000

Deputy Head of

Compliance

70,000 90,000 10,000 25,000

Head of Compl iance 85,000 150,000 15,000 50,000

Compliance and regulatoryreporting departments are

likely to grow in 2010 on theback of potential regulation.


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Risk


2009 ReviewThe world of Risk entered the public consciousness during 2008/9 as the globalfinancial crisis precipitated calls from the press for financial institutions to be heldmore accountable in mitigating risk.

Despite this outcry, during the first half of 2009 demand and pace slowed for risk

managers. However, during the second half of the year the role of the risk

professional evolved as corporate governance functions were given more

freedom to offer independent evaluations and push back on front office.

Credit and Market Risk:

Despite seeing some redundancies during the early part of the year, an improved

market during the second half of 2009 once again led to risk becoming a key

focus for investment in headcount. At the same time however, employers were

more scrutinous when considering candidates against job requirements.

Across credit risk, the first half of the year was

dominated by interim and contract recruitment,

especially at the more senior end of the market.

Market risk saw a slow recovery. Whilst there

were fewer redundancies in this space,

budgetary demands and waning headcountstill impacted many hiring managers. Towards

the end of 2009 there was increased demand

for control focused individuals and those with broad product knowledge

combined with market risk reporting skills. We expect this to continue into 2010.

Operational Risk:In the second half of 2009, the appetite for operational risk hiring recovered. Newrisk and control teams were embedded into several businesses as the scrutiny of

existing processes and controls became more prevalent. These new teams

typically sit separately from the independent operational risk teams and during

2010 it will be interesting to see how these teams will be consolidated.

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As expected very few candidates were able to secure an increase in theirsalary through an external move. 44% of bonuses were consistent with the year

before, 24% saw their bonus reduce by a third and 32% received no bonus.

Outlook for 2010Early indications suggest that 2010 will be a more prosperous year for risk

professionals.

With a continued focus on risk and the budgets to act, many banks will look tore-design and re-evaluate their risk management policies and models.

Inevitably, February and March has seen a lighter flow of candidates as they

hold off from their job search until bonus rounds are completed. We expect to

see an influx in candidates and new roles post April.

During the year we anticipate that a number of organisations will consolidatetheir credit and market risk functions to create a more holistic approach to risk

in their businesses.

Banks will continue to be closely monitored by the FSA and we predict

continued bonus scrutiny and new tax regulations for 2010. This means that

guaranteed bonuses in the risk arena will be few and far between in the short

term.

For banks to remain competitive and attractive to risk candidates, we expect

to see a increase in base salaries during the year. We also expect salary

packages to be structured differently, providing cash incentives on top of the

basics.

As economic recovery continues, there will be a boost in market confidence.We believe that this will bring about an increased demand for skilled risk

professionals across the banking industry.

The rst half of theyear was dominated byinterim and contractrecruitment, especiallyat the more senior endof the market.


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Job TitleBase

Min ()Base

Max ()BonusMin ()

BonusMax ()

Market Risk

Analyst 30,000 47,000 3,000 15,000

AVP 45,000 65,000 5,000 50,000

VP 60,000 90,000 10,000 75,000

Director 90,000 150,000 20,000 120,000

Quantitative Risk

Analyst 35,000 45,000 3,000 5,000

AVP 45,000 60,000 6,000 50,000

VP 70,000 90,000 10,000 85,000

Director 100,000 150,000 20,000 120,000

Operational Risk

Analyst 35,000 45,000 3,000 15,000

AVP 45,000 60,000 5,000 20,000

VP 65,000 90,000 5,000 50,000

Director 95,000 150,000 15,000 70,000

Credit Risk

Analyst 30,000 47,000 3,000 15,000

AVP 45,000 65,000 6,000 45,000

VP 60,000 100,000 10,000 80,000

Director 90,000 150,000 20,000 120,000

Risk


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Operations

Astbury Marsden Salary Survey - Operations

2009 ReviewFollowing aggressive redundancies throughout the city in 2009 employers thatwere in a position to hire had an abundance of candidates to choose from. Thiswas especially apparent with Analyst level hires at investment houses who were

building out new functions to take full advantage of more readily available talent.

In the second half of the year investment

banks looked to streamline and re-engineer

existing architecture, bringing ProjectManagers into hot demand. A large number

of first-class Project Managers were receiving

high rates within the contracting market

and as a result those within the permanent

market also commanded a premium.

Outlook for 2010The nature and volume of the operations recruitment we have seen in the first

quarter suggests market confidence continues to increase.

Policy change and an improving market will lead to increasing demand for hires

in regulatory and control within investment houses.

Client Services and Operational Asset Management roles, previously cut backduring the downturn, will be actively sought in 2010.

Following bonus rounds we are seeing a change from what was an employer-

driven market during 2009, into what is increasingly becoming a candidate driven

market in 2010. Candidates will be more selective when choosing opportunities

and we are already seeing the return of multiple offers.

As organisations which were either bought or sold during the last couple of years

come to grips with this new landscape, Operations Project Management hiring

will continue to be at the forefront of many firms priority lists. We are also

seeing movement within product development, pricing and strategic planning

and expect this to continue as the year progresses.

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Project Managementhiring in operations willcontinue to be at theforefront of many rmspriority lists.


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Astbury Marsden Salary Survey - Operations

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Job TitleBase

Min ()Base

Max ()BonusMin ()

BonusMax ()

Settlements

Analyst 32,000 45,000 1,000 8,000

AVP 45,000 65,000 3,000 10,000

VP 63,000 85,000 15,000 40,000

Director 80,000 120,000 20,000 120,000

Operations Control

Analyst 35,000 45,000 1,000 12,000

AVP 45,000 65,000 5,000 15,000

VP 63,000 90,000 20,000 50,000

Director 85,000 120,000 40,000 120,000

Corporate Actions

Analyst 35,000 45,000 1,000 12,000

AVP 45,000 65,000 5,000 15,000

VP 68,000 85,000 20,000 50,000

Director 85,000 120,000 40,000 120,000

Client Services

Analyst 35,000 48,000 1,000 12,000

AVP 50,000 65,000 5,000 15,000

VP 68,000 90,000 20,000 50,000

Director 85,000 13,000 40,000 120,000

Job TitleBase

Min ()Base

Max ()BonusMin ()

BonusMax ()

Documentation

Analyst 32,000 45,000 1,000 12,000

AVP 50,000 65,000 5,000 15,000

VP 68,000 80,000 20,000 50,000

Director 85,000 120,000 40,000 120,000

Trade Support

Analyst 38,000 52,000 1,000 12,000

AVP 50,000 65,000 5,000 15,000

VP 68,000 95,000 20,000 50,000

Director 85,000 130,000 40,000 120,000

Operations


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Astbury Marsden Salary Survey - Contracts

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Contracts

2009 ReviewThe appetite for hiring for the first half of 2009 was measured with banks resistingspeculative hiring in advance of a resource being needed. Further, line managerssought a higher degree of candidate fit than seen in previous years.

As the year progressed, the volume of contract hires

increased, especially as we moved into the second

half. A level of optimism returned as confidence in

future revenues became more evident.

Market rates for contractors stabilised during the year

after their downward spiral during 2008 with some

areas witnessing rate increases by year end, most

notably within hot spots such as market risk, counterparty risk and financial reporting.

Outlook for 2010The outlook for 2010 is undoubtedly more promising than some might have pre-

dicted. We anticipate that the contract market will remain buoyant over the course

of the year, despite a common strategy for banks to soak up demand through

direct hiring and internal moves.

As a result of the volatile market conditions of

late 2008 and early 2009 and subsequent M&Aactivity, there will be significant ongoing hiring

needed for Business & Change Analysts and

Project Managers to drive integration and cost

saving projects to completion.

Additionally, contractors are being recruited intospecialist areas to supplement existing bank workforces to address key businessissues predominately in risk, regulatory and financial reporting.

In a further development we predict that during 2010 banks will increasingly look to

capitalise on market opportunities rather than just focus on risk avoidance and cost

reduction programs.

2010 will be another challenging year for some in financial services, but will bea period of opportunity for others. With the volatility and level of change on the

horizon, the outlook is positive for the contract community.

Line managerssought a higherdegree of candidatet than seen inprevious years.

The outlook for 2010 isundoubtedly morepromising than somemight have predicted.


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Job Title Level 1( pd)

Level 2( pd)

Level 3( pd)

Change Management

Project Manager Assistant 250 300 350

PMO 350 450 550

Project/Change Manager 400 500 600

Programme Manager 550 650 750

Subject Matter Expert 500 550 600

Subject Matter Expert/BA 500 550 600

BA 500 550 600

Lead BA 550 600 650

Financial Control

Financial Analyst 250 325 400

Cost Accounting Controller 250 300 350

Regulatory Reporting Officer 250 300 400

Financial D isc losure Report ing Analys t 250 325 400

SF&I Accountant 200 280 350

Equity Derivatives Accountant 250 325 400

Inter-Group Inter-Company Analyst 250 325 400

Balance Sheet Control Analyst 220 300 400

Global Cost Controller 200 300 400

Reconciliation Analyst 150 200 350

TB Financial Controller 180 250 400

Transfer Pricing Analyst 180 250 350

BU Europe Management Accountant 250 325 400

Accounts Payable Assistant 120 180 250

Job TitleLevel 1( pd)

Level 2( pd)

Level 3( pd)

Product Control

VoI Trading Product Controller 250 320 400

Equity Derivatives Product Controller 200 300 400

Funding Controller 200 280 350

Product Controller: Integrated Credit Trading 250 350 450

FI Repo Collateral Product Controller 250 320 400

Product Control System Reconci liat ion 200 280 350

Local Markets Rates Trading Product Controller 220 300 380

Asset Securitisation Basel II Product Controller 250 350 450

Credit Exotic Product Controller 250 300 400

Risk

Market Risk Control/Analyst 300 400 500

Market Risk Manager 400 500 600

Trading Book Risk Control ler - Credit Risk 300 350 400

Banking Book Risk Controller 300 350 400

Market Risk Developer 450 550 650

Credit Risk Analyst 400 450 500

Trading Risk Control ler - Market Risk Rates 275 325 375

Trading Risk Controller 250 300 350

Basel2 Credit Risk Consultant 400 450 500

Regulatory/Monitoring Analyst 200 250 300

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Astbury Marsden Salary Survey - Contracts

Contracts


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