Risk professionals in the capital markets saw their average total compensation increase by 9 percent in 2006 over 2005, with an 8 percent compound average growth rate (CAGR) since 2003.
While growth in salary has been a more modest 4 percent over the last four years, double-digit growth in cash and non-cash bonuses has resulted in extremely healthy total compensation.
The figures were reported in the new “Professional Compensation Survey” by Risk Talent Associates, a leading risk management executive search firm.
In addition to compensation, this year’s survey features trends in hiring for risk organizations. Seventy-two percent of survey respondents report they are considering changing jobs in the next two years – 27 percent say they will change jobs and 45 percent say they may change jobs. That is dramatically higher than the 17 percent who report having changed jobs in the last two years.
“Increased emphasis on risk management by firms, regulators, media and investors is causing experienced risk professionals to look externally in order to ensure that their current compensation reflects their market value,” said Michael Woodrow, president of Risk Talent Associates.