Options Group, a leading global executive search and strategic consulting firm, announces the release of its annual global report on hiring and compensation trends for financial services professionals. Michael Karp, co‐founder and CEO of Options Group, said, “This is the year of metamorphosis. Many banks are near completion of their multi‐year restructuring plans, shedding non‐core operations, addressing a variety of legal issues, streamlining operations, and creating a whole new approach to profitability.”
The results of the 2014/2015 Global Financial Markets Overview and Compensation Report indicate that average compensation will increase 4% in 2014 from 2013. Declines in some sectors of FICC (credit, rates, currencies and commodities) and cash equities will be offset by securitized products, emerging markets, equity derivatives, investment banking, and private wealth management. Options Group forecasts that average global compensation will decrease 1% in FICC, increase 1% in equities, increase 9% in investment banking, and increase 7% in private wealth management.
In the US, credit, rates, and foreign exchange professionals, on average, are expected to experience the largest compensation declines; while securitized products, emerging markets, equity derivatives, investment banking, and private wealth management professionals are forecasted to see the largest average compensation increases.
In EMEA, rates and foreign exchange professionals are expected to experience, on average, the largest year‐over‐ year compensation declines. Investment bankers and credit professionals are forecasted to have the largest year‐ over‐year compensation increases.
In Asia, commodities professionals are expected to have, on average, the greatest year‐over‐year compensation declines. Investment bankers and credit professionals are forecasted to have the largest year‐over‐year compensation increases.
This 160‐page report contains over 2,500 compensation data points and over 60 placement examples across six major financial regions from managing director to associate. It provides in‐depth analysis of hiring trends and the competitive landscape within key geographical regions, as well as compensation projections by asset class and product category.
The report is available for purchase exclusively to clients of Options Group.
COMPENSATION DATA ANALYSIS METHODOLOGY
Forecasts incorporate general market conditions from January 1, 2014 to October 31, 2014. The Options Group 2014/2015 Global Financial Markets Overview and Compensation Report is the culmination of twelve months of work contributed by over 120 global consultants and research professionals. It is intended to help our clients make informed compensation decisions for 2014 and to develop their human resource management plans and policies for 2015. Our Options Group Intelligence Unit (OGIU) has captured information on global business performance, key talent moves, recruitment trends and compensation practices through its extensive global database of over 500,000 industry professionals, interviews with senior executives across the industry and various other data sources.