US
Following on from our contemplation of Kweku’s compensation (around 370k?), it seems apposite to look at the compensation of the other players in the sorry affair: the risk managers.
They were not earning nearly as much. We don’t know precisely how much UBS wafts in the direction of its risk professionals, but salary surveys and risk recruiters have long indicated the comparative impoverishment of everyone working in risk. Yesterday Nick Leeson popped up in the Independent saying it too:
But the role of the risk manager is of paramount importance. The individuals in that role should be of the highest calibre. They should be paid well, and they should be able to challenge people. The traders have always been almost untouchable.
How much you earn in risk depends on the kind of risk you specialize in (front office market risk pays the most, operational risk, which bear the responsibility for sniffing out fraudsters, pays the least.) and the number of people you manage.
Priya Mariannie, senior risk consultant at recruiters PSD Group, says MDs in market risk can expect a salary of 200k, plus a bonus of around 50%.
What about directors/VPs at the same level as Kweku? “A VP in operational risk would be on a salary of 100-150k and a bonus of less than 50%,” says Sheldon Paul at risk recruiter Cameron Kennedy.
In light of events at UBS, it might be time to pay operational risk professionals a bit more. Across the board, the difference between the haves and have nots in risk has widened since 2008, says another risk recruiter. “People are moving into risk from the business and getting paid a premium,” he says, “You can have people at different banks on salaries of 100k or 170k for the same role.”
The best bank for risk pay and risk empowerment is allegedly JPMorgan, where the risk consultant says everyone especially wants to work. “JPMorgan are known as a good risk house. Their risk department is valued and paid well for what they do,” he claims. “Unfortunately, they rare hire externally.”
seriously, what s the median total comp of a market risk manager VP level at a tier one?
Sheldon Paul – Risk recruiter Cameron Kennedy. I dont think so!!!
Why should we pay more to people who are clearly not doing the job they should be as its always the big banks that seem to encounter this problem. We should take a look at the smaller banks who have a very tight risk culture and we may in fact learn something.
Could you please provide salary guidence on credit risk professionals?
Your research is shocking, senior MDs in risk earn well north of 600k and rightly so. 300k quoted by the “senior” risk consultant is ED territory.
Why is it that risk jobs on EFC are always in the range of 60k for 5yrs+ experience?
All these 100K+ numbers touted for VPs and yet I never seem to be called about such packages.
Sarah how do you get into op risk? ok so this is a very sour situation but we can all learn from it right? Just like we did when there were other fools who also tried to do what he did years ago.
There will always be smarty pants liek him trying to defraud the system. Crime never pays. The likes of him get greedy- as if his earnings was’nt enough already
?????
a VP in a tier one bank in market risk can expect to earn betw 100-140k. an ED starts at 150k, dont ask for less.
Bonus can be betw 30% and 50%. Few houses at VP will pay more than 50%.
Credit Risk pays typically less than this.
I have done both mkt and quantitative credit risk in tier 1 banks.
Those numbers are light….ED level would be 250-350 all in; MD 50-100% more than that but min for MD is 400 area all in in a support function
Right but how many years experience would be required for a VP? In front office you are a VP after 4 yrs of graduation (on average). All the risk jobs seeking 5+yrs experience are offering associate level positions. Its all well and good saying VPs earn over 100K but in the middle office it seem you need about 10 yrs + experience for a VP spot.