According to Antal Russia survey about half of professionals in the banking sector (47%) got bonuses for 2009 (paid in spring 2010). The survey covered over 160 bankers primarily representing large international and Russian banks and financial companies.
Of those professionals who got bonuses, half admitted that the bonus for 2009 remained the same or decreased in comparison with previous year while 46% stated they had an increase in bonus payments.
About a half of surveyed banking professionals (49%) have changed the job for the last two years. The level of basic salary was the main reason for changing job for 41% banking managers and 12% preferred to move to a new employer who offered more interesting bonus scheme. However the main reasons for changing job for professionals of banking sector remain career development (57%) and new challenge and more interesting work (53%).
Over 40% of respondents to the Antal Russia Banking 2010 salary survey said that they were looking for a raise in base salary of more than 30%. “In part this high expectation on compensation is making up for recent pay freezes and bonuses that were small or not paid at all. Senior candidates still discuss total compensation, albeit without guarantees, but there is a perception among junior and mid level candidates that a premium is needed to leave a secure role and promises of bonuses are not as valuable to many as guaranteed pay. Candidates have memories of the firms who hired aggressively during the boom market, promised high bonuses and then laid people off during the downturn”, comments Karl Franzmann, Head of the Antal Russia Banking Practice.
“After the across the board down sizing during the crisis in late 2008 and early 2009 we are seeing a modest return to business as usual in the Russia region. During the crisis we saw a number of large commercial and investment banks cut their staff. A disproportionate number of execution staff at the Analyst and Associate levels were cut. VPs, Directors and MDs were often retained in order to originate business and rebuild the teams once the markets picked up, but often without promotions or material bonuses”, says Karl Franzmann.
Surplus talent has in the large part been consumed by Russian investment firms and boutiques who were runners up in the war for talent at the peak market and had a residual short fall in hiring. Unemployed banking professionals have often been offered equal and sometimes lower packages to get their career back on track.
“The picture on staff retention is more difficult. Ironically rather than hiring surplus talent on the cheap, the top firms who hired offered fair market compensation deals to their recent key hires. Preferring to take the best from competitors, compensation has in some firms become uneven with hereditary staff often on lower deals than new entrants. Keen to motivate and avoid staff leaving, some forward thinking firms are now offering increased benefits and realigning pay to retain key talent. Those who are not moving quickly to retain staff are starting to lose people as opportunities open up”, says Karl Franzmann.
While remaining cautious, many banks and investment companies remain long term optimistic about Russia and are slowly getting ready for a period of market growth. “In Investment Banking there were some major moves of top managers in the end of 2009 and the beginning of 2010. However, investment companies and banks are recruiting new employees on a case by case basis, filling the gaps in middle and junior levels where absolutely critical. There have also been instances of banks taking back particular people who they cut in harder times. Although there is again appetite to hire, employers in the banking sector still are not ready to offer the guaranteed bonuses often demanded and paid at the height of the market”, says Elvira Chekmareva, Principle Consultant Investment Banking of the Antal Russia Banking Practice.
Retail banks are hiring more actively now. “Banks have regained liquidity and are ready to offer credit again. Moreover the Central Bank has supported this by lowering interest rates. This has lead to a demand for strong managers who are able to build effective sales processes, ensure high profile client service, attract new clients as well as “warm up” passive client portfolios by stimulating the cross-selling of loan products such as cash, cards, mortgages and insurance. The salaries and expected bonuses of these employees have reached the pre-downturn level”, – comments Tatiana Bartiouk, Senior Consultant Retail and Commercial Banking of the Antal Russia Banking Practice.
Banking Salary Survey
May 25, 2010 at 10:55 am
[...] Salary Survey.Nearly half of surveyed bankers acknowledged the receipt of bonuses paid for 2009 &laq… [...]