Financial Services Accounting & Finance 2012 Salary Guide

Helen Firth 09.01.2012

Asset Management

Permanent

Asset management accounting recruitment showed some positive signs in the early part of 2011, but continued to be a challenging market in H2.

Strong regulatory and control environments continue to be a theme for large and small asset managers alike, but basic salaries have remained relatively static and will remain so throughout 2012. We have seen spikes in the need for qualified experienced auditors and financial accountants but the part qualified market has been quiet.

There has been a particular need for finance professionals in the private equity sector and we expect to see this continue.

Overall there has been growing concern across all levels from professionals moving roles in the current climate, resulting in an extended time period for recruitment processes and organisations protecting their existing talent. We expect this to be a continuing theme in 2012.

 

BASIC SALARIES (PER ANNUM)

Role: Part Qualified Newly Qualified AVP/2-5 years VP/5-7 years Director/10+ years
Financial Accountant £25k - £45k £45k - £52k £50k - £70k £65k - £80k £75k - £100k
Management Accountant £30k - £45k £45k - £52k £50k - £75k £75k - £85k £80k - £95k
Financial Controller * £45k - £65k £60k - £80k £75k - £90k £85k+
Fund Accountant £25k - £40k £40k - £55k £50k - £65k £65k - £85k £85k - £100k
Internal Auditor £30k - £35k £45k - £50k £50k - £70k £65k - £90k £85k - £120k
Regulatory Accountant £30k - £35k £40k - £55k £50k - £65k £60k - £80k £80k - £100k
Business / Finance Analyst £30k - £35k £45k - £60k £55k - £75k £70k - £90k £85k+

*Typically, these roles do not exist at this level

Temporary

There was increased demand for experienced asset management finance contract professionals in 2011, particularly in H1, which is in line with historical trends. This upsurge was mainly due to a need to increase controls and improve reporting frameworks creating opportunities for internal, external and fund reporting specialists. There was also demand for finance analysts who were involved in planning and budgeting.

Market uncertainty over the summer months caused hiring volumes to decrease as firms focused on replacement hires and cover only. While the larger institutional asset managers’ hiring volumes decreased as processing roles moved to regional locations, the smaller firms (particularly hedge funds and private equity organisations) increased their hiring. The skill sets in demand tended to be for qualified accountants with good technical skills and commercial acumen.

This trend is set to continue in 2012. As firms look to retain key contractors, the demand for the best candidates continues. Firms are encouraged to plan their hiring and act swiftly to ensure they attract and retain the best talent. Rates remain stable and are expected to continue to stay flat moving into 2012, mainly due to a cost reduction focus and the increased candidate pool available.

 

 

RATES (PER DAY)

Role Part Qualified Newly Qualified AVP / 2-5 years VP / 5-7 years Director/ 10+ years
Financial Accountant £150 - £220 £200 - £250 £250 - £350 £300 - £400 £400+
Management Accountant £150 - £220 £230 - £270 £250 - £350 £300 - £400 £400+
Financial Controller * * £300 - £350 £350 - £450 £450+
Fund Accountant £150 - £200 £200 - £250 £200 - £300 £250 - £350 £350+
Regulatory Accountant £150 - £250 £230 - £250 £250 - £350 £300 - £400 £400+
Business / Finance Analyst £200 - £250 £250 - £300 £300 - £350 £350 - £450 £450+

*Typically, these roles do not exist at this level

Banking 

Permanent

At the junior end of banking finance, the market saw a resurgence in demand for accountants with practical banking experience, a shift from the demand for newly qualified accountants back in 2010. In particular, qualified accountants from Big Four firms with working experience in finance at an investment bank – anywhere from two months to two years PQE – were heavily targeted by banks to help supplement established teams that had become top heavy. This increase in

demand meant that a qualified accountant with limited banking experience could earn between £60,000 and £70,000. Meanwhile, demand for talented newly qualified accountants decreased in direct correlation, although salaries at this level remained consistent with 2010 levels. The beginning of 2011 also saw a strong demand for experienced professionals at the senior end of the market. However, this was more of a ‘focused demand’ in contrast to the ‘get people through the door’ policy of

the previous year. Senior candidates with specific technical product / accounting skill sets were targeted for ‘exotic’ roles in IPV, P&L / risk and accounting policy. There was continued hiring within the regulatory space, both in terms of line and change roles. Base salaries remained consistent with 2010 with slightly more flexibility at the top of the VP scale for those with complex banking knowledge and skill sets.

 

 

BASIC SALARIES (PER ANNUM)

Role: Part Qualified Entry Level Newly Qualified AVP/2-5 years VP/5-7 years Director/10+ years
Product Controller £35k - £50k £50k - £59k £59k - £75k £80k - £110k £125k - £200k
Financial Controller £35k - £47k £47k - £58k £58k - £75k £80k - £110k £110k - £180k
Legal Entity Controller £35k - £47k £47k - £58k £58k - £75k £80k - £110k £110k - £165k
Management Accountant £35k - £47k £47k - £58k £58k - £75k £80k - £110k £110k - £165k
Regulatory Reporter £35k - £47k £47k - £59k £59k - £75k £80k - £110k £110k - £180k
Business Analyst / Project Manager £35k - £48k £48k - £59k £59k - £75k £80k - £120k £125k - £200k
Business Manager / COO £35k - £48k £48k - £59k £59k - £85k £80k - £120k £125k - £200k
Valuations £35k - £48k £48k - £59k £59k - £85k £80k - £110k £125k - £200k

Temporary

The accountancy and finance market in the first half of 2011 carried on the trend from 2010 of recruiting heavily, especially in cost / revenue accounting along with strong demand in product control.

Confidence was renewed and projects were proceeding full steam ahead, until the summer of 2011 when the market contracted and professionals started having to accept reduced rates and become more open in their search for a position.

The number of available roles dropped by approximately 15% during this period.

Newly qualified professionals from accountancy practice have found it tough to secure a role in financial services as candidates with banking experience have been the preferred option.

The senior contract market grew in 2011, which we expect will continue as banks look to secure talent for key integration and structure change projects.

However, with banks uncertain of how economic conditions will change in the short to medium term, hiring is for essential roles only and rates have reduced due to budget constraints.

 

 

RATES (PER DAY)

Role: Part Qualified Newly Qualified AVP/2-5 years VP/5-7 years Director/10+ years
Product Controller £200 - £250 £250 - £285 £300 - £380 £380 - £450 £450+
Legal Entity Controller £200 - £250 £250 - £285 £300 - £375 £375 - £450 £450+
Management Accountant £200 - £250 £250 - £285 £300 - £400 £400 - £500 £450+
Business Analyst £250 - £350 £300 - £400 £400 - £500 £500 - £600 £650+
Financial Accountant £200 - £250 £250 - £285 £300 - £350 £350 - £450 £450+
Finance Business Partner £200 - £250 £250 - £285 £300 - £400 £400 - £500 £450+
Financial Planner and Analyst £200 - £250 £250 - £285 £300 - £400 £425 - £500 £500+

Commodities

Permanent

Over the past 12 months hiring has been sluggish across the commodities finance market as the focus on cost reductions has increased and candidates have been less inclined to move roles in such uncertain times. Some areas are bucking the trend: product controllers with strong analytical capabilities and risk awareness are still in short supply and continue to demand a premium.

There has been a general trend across the board to cut some senior and middle management to lower costs and pass greater responsibility to other staff, but this has had only a ‘trimming’ effect on overall headcount. Remuneration levels for 2012 are likely to remain fairly stable. If bonus levels are as low as anticipated, the increased supply of professionals is unlikely to be matched by a marked increase in job vacancies.

However, in the investment banking world there is currently strong demand for individuals with solid physicals experience as this looks like an area set to expand over the next few years. The continued spiking of prices in the softs market largely due to supply concerns is likely to result in an increased headcount requirement as this space remains lucrative. Overall, improved confidence in the market will drive recruitment at all levels.

 

 

BASIC SALARIES (PER ANNUM)

Role: Part Qualified Newly Qualified AVP/2-5 years VP/5-7 years Director/10+ years
Product Controller £35k - £50k £50k - £59k £59k - £75k £80k - £120k £125k - £200k
Financial Controller £35k - £47k £47k - £58k £58k - £75k £80k - £110k £110k - £180k
Legal Entity Controller £35k - £47k £47k - £58k £58k - £75k £80k - £110k £110k - £165k
Management Accountant £35k - £47k £47k - £58k £58k - £75k £80k - £110k £110k - £165k
Regulatory Reporter £35k - £47k £47k - £59k £59k - £75k £80k - £110k £110k - £180k
Business Analyst / Project Manager £35k - £48k £48k - £59k £59k - £75k £80k - £120k £125k - £200k
Business Manager / COO £35k - £48k £48k - £59k £59k - £85k £80k - £120k £125k - £200k
Valuations £35k - £48k £48k - £59k £59k - £85k £80k - £120k £125k - £200k

Insurance (Life & non-life)

Permanent

The jobs market for finance in insurance in 2011 was exceptionally busy. Momentum picked up early in the year and job flow steadily increased month on month with no sign of slowing.

Much the same as 2010, many clients looked to up-skill their teams but found a shortage of exceptional candidates on the market. Recruitment processes have therefore taken longer than previous years.

Solvency II and corporate governance have remained high on the list of recruitment priorities with new positions regularly being created. As a result, Morgan McKinley has developed specialist teams with consultants purely recruiting into both of these areas.

Moving into 2012 growth is still a hot topic and companies are keen to get ahead of the competition when it comes to hiring.

Consequently, many hiring managers in this sector are reviewing their companies’ benefits structures and bonuses to ensure they are competitive within the industry.

 

 

BASIC SALARIES (PER ANNUM)

Role: Part Qualified Newly Qualified AVP/2-5 years VP/5-7 years Director/10+ years
Financial Accountant £25k - £40k £40k - £55k £52k - £75k £65k - £95k £90k - £200k
Syndicate Accountant £25k - £45k £45k - £55k £50k - £70k £70k - £90k £90k+
Management Accountant £25k - £45k £40k - £55k £52k - £70k £65k - £95k £90k - £180k
Business Partner / COO £35k - £45k £45k - £55k £52k - £75k £70k - £110k £95k - £200k
Internal Auditor / Governance Controller £25k - £40k £40k - £55k £50k - £75k £65k - £90k £90k - £150k
Business Analyst / Project Manager £28k - £45k £40k - £58k £55k - £80k £75k - £100k £90k - £180k
Solvency II Technician £30k - £45k * £55k - £80k £75k - £110k £100k - £200k

*Typically, these roles do not exist at this level

Temporary

The market for temporary accounting and finance roles in the insurance sector remained strong in 2011.

The increased demand for permanent talent had a positive impact on demand for temporary staff. With the continued implementation of Solvency II technically competent professionals are in demand.

As a result of the high volume of roles contractor rates continued to increase throughout the year.

Moving into 2012, the outlook for contractors specialising in insurance remains relatively good. If bonus levels within the permanent space are as low as anticipated, there may be an increased supply of professionals entering the temporary market.

However, this is unlikely to be matched by a marked increase in new job roles.

New projects will need to be implemented which will see a steady flow of positions released for job seeking professionals in this sector. The extension of the Solvency II deadline will continue to keep contractors in place and the ever growing governance of the industry will ensure that qualified accountants remain in high demand.

 

RATES (PER DAY)

Role: Part Qualified Newly Qualified AVP/2-5 years VP/5-7 years Director/10+ years
Financial Accountant £120 - £250 £230 - £250 £220 - £300 £300 - £550 £400+
Management Accountant £150 - £250 £230 - £250 £220 - £320 £300 - £400 £400+
Financial Controller * * £250 - £350 £300 - £550 £450+
Fund Accountant £120 - £210 £210 - £250 £200 - £280 £250 - £300 £350+
Regulatory Accountant £150 - £250 £230 - £250 £220 - £350 £250 - £400 £400+
Business / Finance Analyst £200 - £250 £250 - £300 £250 - £350 £320 - £450 £400+
Solvency II Technician £200 - £250 * £250 - £500 £350 - £750 £500+

*Typically, these roles do not exist at this level

Helen Firth's picture
Senior Manager
hfirth@morganmckinley.com

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