Financial Services Compensation Mostly Higher

January 9, 2003 ( - Financial services industry chief executive officers enjoyed a 16% cash compensation hike last year while chief financial officers got 5% more in their paychecks, two new surveys found.

Not only that, but the two surveys by Buck Consultants also found that the 2003 financial services industry picture is relatively bright given the struggling economy. Firms are projecting an average 2003 merit increase of 4.3% for investment management professionals, compared to 3.8% in other industries, the Buck surveys found.

Salary structure adjustments (formal salary ranges with set minimums and maximums) are also anticipated to be higher than average in financial services this year – 3.3% for investment management professions, compared to 3.1% for other general industries

The surveys, conducted with Greenwich Associates, indicate that investment professionals’ compensation varies by the asset mix their companies handle.For example, average total cash compensation for a senior equity portfolio manager declined by 12% in 2002 compared to 2001, and the average cash compensation for the same position on the fixed income side increased by 10%, Buck said.  A similar pattern emerges for other professionals in the fixed income and equity areas.

The surveys, compiled in the third quarter of 2002, covered nearly 40 investment management operations nationwide.