Accounting and Finance - Banking 2016 Salary Guide

David Leithead 25.02.2016

At Morgan McKinley, we endeavor to provide up-to-date market insight and expert knowledge on your sector. Here we offer key recruiter information within the banking divisions of Accountancy and Finance, covering permanent and temporary salaries across London and South West England.

View our most up-to-date A&F in Banking Salary Guide.

Large Financial Services Firms

Regulatory, Product Control and Treasury the main hot spots

London’s leading investment and corporate banks did not show much appetite for creating new roles in 2015, with recruitment focused on backfills and replacement hires. Overall, volumes of hires were similar to 2014/2015. Any creation of new roles were focused on the AVP level within the £60-75k bracket and for recently qualified ACAs coming out of practice. At more senior levels the market has been flat.

As in recent years, the exception to the norm has been in Regulatory Reporting and Policy Advisory. There is strong pressure set by regulatory bodies (i.e. the PRA, FCA, EBA and FED) to complete required reporting, which has required banks to boost their junior level staffing, whilst advisory expertise is required to interpret the next round of regulatory requirements (i.e. Basel IV) and act as a link between the business and the regulators themselves.

In addition, a focus on Valuations/IPV has increased the demand for quantitative analysts. The majority have been within the Fixed Income space across Rates, FX and Credit. There has also been more demand on the structure/exotic side with P&L attribution skills being top of the agenda. A number of organisations now house the production elements of the role outside of London, leaving the analytics and front desk interaction to leaner, more technical teams in the Capital. Those individuals with two to three years’ experience have been most in demand, although we have seen several VP positions come to market, mostly due to internal moves and restructures.

A third growth area which will continue throughout 2016, is Treasury. Many banks have moved their liquidity reporting out of regulatory functions and into Treasury, which has caused some upheaval and restructuring. Strong treasury/liquidity individuals have therefore been in demand, with knowledge required across the ILAA framework. 

Salary structures remain strictly adhered to within the larger banks and we have seen minimal flexibility in the past year. The general exception to this is within the regulatory functions. Talent shortages have driven competition for the best individuals in the market.
 

 Permanent - London
Basic Salary (£ Per Annum)
Role Part-Qualified Newly-Qualified AVP/2-4 Years VP/5-9 Years Director/10+ Years
Product Control 35,000-45,000 45,000-60,000 60,000-75,000 75,000-110,000 110,000-175,000
Valuation Control 35,000-45,000 45,000-60,000 60,000-75,000 75,000-110,000 110,000-175,000
Business Management/COO * * 60,000-75,000 75,000-110,000 110,000-175,000
Regulatory Policy * * 60,000-75,000 75,000-110,000 110,000-175,000
Regulatory Accountant 35,000-45,000 45,000-60,000 60,000-75,000 75,000-110,000 110,000-175,000
Financial Accountant 35,000-45,000 45,000-60,000 60,000-75,000 75,000-110,000 110,000-175,000
Management Accountant 35,000-45,000 45,000-60,000 60,000-75,000 75,000-110,000 110,000-175,000
Treasury Accountant 35,000-45,000 45,000-60,000 60,000-75,000 75,000-110,000 110,000-175,000

*Typically, these roles do not exist at this level

 

SMEs, Boutiques & Brokerage Salaries

Demand buoyant at all levels

Roles in the smaller banks and brokerages are more diverse and they offer the opportunity to move into more senior positions closer to the business. This is often attractive to professionals currently working in larger houses. Compared to 2014, the increase in confidence in the market has lead to a rise in the volume of more generalist and value-add roles. This is in part due to smaller institutions  being less under the regulatory spotlight than their larger rivals.

Demand has been more evenly spread across different levels of seniority, although very senior roles rarely come onto the market, as professionals with many years of service tend to be well looked after.

SME banks are more likely to recruit contractors to help them through regulatory requirements. These posts usually entail a high degree of responsibility and as such command high day rates. 2015 saw less recruitment of more junior contractors than in previous years but we saw many temporary to permanent conversions. A contractor who is engaged for maternity leave or similar, can often make a strong case for retention, as the learning curve in a smaller bank is often quite steep, given the breadth of responsibilities. This invariably makes it difficult to lose such individuals who have proven themselves to be an asset to the organisation. 

The brokerage market went through changes in 2015 with significant consolidation leading to redundancies. Those firms that have cut too deep, may need to look to the market in 2016, once the initial cost of integration has been confirmed and accounted for.

We expect this to be a potential growth area for this year.

Permanent - London
Basic Salary (£ Per Annum)
Role Part-Qualified Newly-Qualified AVP/2-4 Years VP/5-9 Years Director/10+ Years
Chief Financial Officer * * * * 125,000-200,000
Finance Director * * * 90,000-150,000 150,000-200,000
Financial Controller * * * 75,000-110,000 110,000-150,000
Business Manager/COO * * * 110,000-150,000 110,000-150,000
Management Reporting 35,000-45,000 45,000-60,000 60,000-75,000 110,000-150,000 100,000-125,000
Financial Reporting 35,000-45,000 45,000-60,000 60,000-75,000 110,000-150,000 100,000-125,000
Regulatory Reporting 35,000-45,000 45,000-60,000 60,000-75,000 110,000-150,000 100,000-125,000
Treasury Accountant 35,000-45,000 45,000-60,000 60,000-75,000 110,000-150,000 100,000-125,000
Product Control 35,000-45,000 45,000-60,000 60,000-75,000 75,000-110,000 110,000-150,000
Valuation Control 35,000-45,000 45,000-60,000 60,000-75,000 75,000-110,000 110,000-150,000
 Temporary - London
Rate (£ Per Day)
Role Part-Qualified Newly-Qualified AVP/2-4 Years VP/5-9 Years Director/10+ Years
Chief Financial Officer * * * * 1,300-2,000
Finance Director * * * 600-900 900-1,500
Financial Controller * * * 500-800 800-1,200
Business Manager/COO * * * 450-750 750-1,000
Management Reporting 175-250 300-350 350-450 450-750 750-1,000
Financial Reporting 175-250 300-350 350-450 450-750 750-1,000
Regulatory Reporting 175-250 300-350 350-450 450-750 750-1,000
Treasury Accountant 175-250 300-350 350-450 450-750 750-1,000
Product Control 175-250 300-350 350-450 450-750 750-1,000
Valuation Control 175-250 300-350 350-450 450-750 750-1,000
 

Commodity Trading Salaries

Low levels of activity as Chinese growth falters

Commodity markets have been somewhat subdued as a result of the economic slowdown in China and the fall in global oil prices, meaning recruitment has been fairly stagnant in this sector. Many banks have pulled out of the commodities markets as profits have tumbled and there is now a surplus of professionals with strong relevant experience. A number of candidates have been eagerly snapped up by the trading houses.

Those in front office supporting roles, such as Product/Trade Control, are on similar salaries to their counterparts in banking. However, those in more general finance functions, tend to receive slightly lower total remuneration packages compared to what you’d find in a banking or broking organisation. Towards the end of 2015, we began to witness more positive sentiment within the market with many CFOs predicting investment and growth of market share in 2016. 

Permanent - London
Basic Salary (£ Per Annum)
Role Part-Qualified Newly-Qualified AVP/2-4 Years VP/5-9 Years Director/10+ Years
Chief Financial Officer * * * * 125,000-200,000
Finance Director * * * 90,000-150,000 150,000-200,000
Financial Controller * * * 75,000-110,000 110,000-150,000
Business Manager/COO * * * 110,000-150,000 110,000-150,000
Management Reporting 35,000-45,000 45,000-60,000 60,000-75,000 110,000-150,000 100,000-125,000
Financial Reporting 35,000-45,000 45,000-60,000 60,000-75,000 110,000-150,000 100,000-125,000
Regulatory Reporting 35,000-45,000 45,000-60,000 60,000-75,000 110,000-150,000 100,000-125,000
Treasury Accountant 35,000-45,000 45,000-60,000 60,000-75,000 110,000-150,000 100,000-125,000
Product Control 35,000-45,000 45,000-60,000 60,000-75,000 75,000-110,000 110,000-150,000

*Typically, these roles do not exist at this level

 

Insurance Salaries

Consolidations holding down salaries

2015 saw consolidation within both the broking and underwriting markets. Consequently there were fewer vacancies and more talent readily available. A number of companies have taken advantage of this situation by employing a large number of contractors to see them through significant periods of change. It is often difficult to get sign-off for permanent headcount in the current climate.

Despite this, finance recruitment within the insurance sector has remained fairly steady. Those with niche insurance industry experience, such as Lloyd’s Syndicate Accountants, remain in huge demand and can be difficult to entice from their current employers. 

The dust has largely settled on Solvency II with demand peaking a year or two ago, so most insurers have the skills and experience already in-house. Insurance is one of the most conservative sectors within the financial services industry and as a result there are fewer moves at senior level within finance. The majority of positions have been broadly within the £50-70k range and circa £300-350 per day for contract positions.

Salaries remained consistent throughout 2015. Recruitment activity may pick up a little in 2016 once the effects of the recent round of consolidations have been worked through and companies seek to invest in order to grow their businesses. 

Permanent - London
Basic Salary (£ Per Annum)
Role Part-Qualified Newly-Qualified AVP/2-4 Years VP/5-9 Years Director/10+ Years
Chief Financial Officer * * * * 125,000-200,000
Finance Director * * * 90,000-150,000 150,000-200,000
Financial Controller * * * 75,000-110,000 110,000-150,000
Business Manager/COO * * * 110,000-150,000 110,000-150,000
Management Reporting 35,000-45,000 45,000-60,000 60,000-75,000 110,000-150,000 100,000-125,000
Financial Reporting 35,000-45,000 45,000-60,000 60,000-75,000 110,000-150,000 100,000-125,000
Treasury Accountant 35,000-45,000 45,000-60,000 60,000-75,000 110,000-150,000 100,000-125,000
Syndicate Accountant 35,000-45,000 45,000-60,000 60,000-75,000 75,000-110,000 110,000-150,000

*Typically, these roles do not exist at this level

 

South West England 

Relocation, relocation, relocation

In 2015, a number of financial services companies relocated their finance functions to the South West, creating opportunities in cities such as Bristol and Swindon, particularly for technical accountants with knowledge of IFRS 9 and regulations such as Solvency II and Basel III. A few of these firms have been recruiting on a large scale and, as a result, there is a significant talent shortage emerging. Hiring organisations have nevertheless profited from mergers and acquisitions, which have created some uncertainty locally, and have found that they can attract candidates from further afield. Bristol and Cardiff were recently named as the best cities to live in the UK and although salaries are roughly £10k per annum lower for a recently qualified accountant than in London, the appeal of a better quality of life has been a magnet for individuals who grew up or studied in those regions.

Relocations, mergers and acquisition activity, combined with the shortage of staff for full-term hires, have also created opportunities for temporary and contract workers. In addition, projects relating to regulations have created the need for professionals with project experience. Day rates are significantly lower than in London, but for locally based accountants, shorter commuting times make a job in Bristol or other cities in the region an attractive option. This trend will continue throughout 2016.

 Permanent - South West England
Basic Salary (£ Per Annum)
Role Part-Qualified Newly-Qualified AVP/2-4 Years VP/5-9 Years Director/10+ Years
Chief Financial Officer * * * * 125,000-150,000
Finance Director * * * 80,000-100,000 100,000-130,000
Financial Controller * * * 60,000-80,000 80,000-100,000
Business Manager/COO * * * 80,000-100,000 100,000-130,000
Management Reporting 25,000-35,000 35,000-45,000 45,000-65,000 65,000-85,000 85,000-95,000
Financial Reporting 25,000-35,000 35,000-45,000 45,000-65,000 65,000-85,000 85,000-95,000
Treasury Accountant 25,000-35,000 35,000-45,000 45,000-65,000 65,000-85,000 85,000-95,000

*Typically, these roles do not exist at this level

 

David Leithead's picture
Chief Operations Officer UK
dleithead@morganmckinley.co.uk