Mid-level executives with approximately 7 to 15 years experience saw their total compensation grow by 14% to just over 300,000 US dollars in 2005, outpacing both their less-experienced colleagues as well as those with sixteen or more years in professional practice
Michael Woodrow, President of Risk Talent Associates, stated, "The maturity of risk management and the higher level of focus on risk issues have increased the need for qualified consultants in risk management. While consulting firms have traditionally paid lower compensation rates than capital market and asset management firms, compensation levels for qualified management consultants are moving upward. These consulting professionals provide complex technical and quantitative advice to clients, and based on this survey, consulting firms are paying handsomely for this talent. We expect this trend to continue."
The survey notes that 15% of respondents reported changing employers within the last two years, a figure that is lower than the rates found in earlier industry-segmented surveys released by Risk Talent Associates. However, the majority of those who did move came from commercial and investment banking companies, as well as technology and software houses. "Weâve counseled many top risk professionals to spend a few years in consulting to round out their client-facing business skills," said Woodrow.
This is one of four compensation surveys Risk Talent Associates is scheduled to release this month, including studies of technology, energy and corporate risk managers. Risk Talent Associates has also released compensation surveys of risk professionals in the capital markets and asset management earlier this year.