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Banking & Financial Services Salary Guide 2015

Banking & Financial Services Salary Guide

05-03-2015
Submitted by global_admin on Thu, 03/05/2015 - 02:24
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Welcome to Morgan McKinley's 2015 Salary Guide for professionals working in Hong Kong.

Asset Management SalariesBanking Operations Salaries and Contract Rates | Hedge Fund and Private Equity Salaries | Investment Banking and Capital Markets Salaries | Private Banking Salaries

Asset Management Salaries

Role Analyst Associate/AVP VP/Sr.Manager SVP/Director MD
Basic Salaries (HK$ per month)
Fund Manager $45k - $55k $55k - $70k $70k - $95k $120k - $200k $250k+
Research Analyst $30k - $45k $45k - $60k $63k - $83k $92k - $150k $180k+
Retail / Institutional Marketing $15k - $25k $25k - $45k $45k - $65k $65k - $90k $150k+
RFP Writer / Investment Writer $20k - $30k $30k - $45k $50k - $70k $70k - $100k $100k+
Performance Analyst $12k - $20k $20k - $35k $35k - $45k $45k - $70k -
Retail/ Intermediary Sales $20k - $35k $35k - $50k $50k - $85k $80k - $120k $150k+
Institutional Sales $25k - $35k $35k - $60k $60k - $92k $92k - $170k $200k+
Client Relationship / Acc. Management $17k - $25k $25k - $45k $45k - $70k $70k - $100k $100k+
Execution Trader / Dealer $20k - $30k $30k - $50k $50k - $70k $70k - $120k $150k+
Product Development / Management $20k - $30k $30k - $50k $50k - $70k $70k - $120k $100k+
Product Specialist $30k - $45k $45k - $65k $65k - $92k $95k - $150 $200k+

Compared with the previous year, 2014 was a good year for the asset management industry. There was an increase in hiring across front, middle and back office functions. Movement remained highest for sales and marketing positions, and due to on-going changes in regulatory activities, there has been growing demand for supporting roles, such as product development, compliance and operations.

Replacement hires continue to dominate. However, as 2015 begins, optimism remains high with a number of expansions and new headcounts available. This will help create opportunities for new talent from other financial sectors to join the buy-side.

Regarding salaries, employers continue to be stringent in new hires, and for existing employees, modest with year-on-year salary increments. However, employers remain highly competitive in terms of retention due to the limited pool of talent within the industry.

Banking Operations Salaries and Contract Rates

Role Analyst Associate/AVP VP/Sr.Manager SVP/Director Sr. Director
Basic Salaries (HK$ per month)
Trade Support $22K - $35K $35K - $70K $80K - $100K $100K - $115K $125K - $150K
Client Services $22K - $35K $35K - $60K $70K - $90K $100K - $115K $120K - $140K
Settlements $18K - $28K $30K - $45K $55K - $80K $70K - $80K $90K - $120K
Documentation $18K - $28K $30K - $45K $55K - $65K $70K - $80K $90K - $120K
Business Analyst / Projects $30K - $40K $45K - $65K $70K - $100K $110K - $125K $125K - $150K
EQUITY FINANCE (PRIME BROKERAGE)
Prime Brokerage / Client Services $22K - $35K $35K - $60K $70K - $90K $100K - $115K $120K - $140K
Prime Brokerage / Settlements $18K - $28K $30K - $45K $55K - $65K $70K - $80K $90K - $120K
OTHER
Loans Administration $15K - $22K $22K - $35K $40K - $60K $60K - $75K $75K- $90K
Static Data Analyst $15K - $22K $22K - $35K $40K - $60K $60K - $80K $80K - $100K
Control / Reconciliations $22K - $35K $35K - $60K $70K - $90K $100K - $115K $125K - $150K
Asset Servicing $18K - $28K $30K - $45K $55K - $65K $70K - $80K $90K - $120K
Cash Management $20K - $30K $30K - $50K $55K - $70K $70K - $90K $90K - $120K

In 2015, we are expecting many companies to be making slightly more positive announcements, with regards to bonuses, as compared with the previous couple of years. Within operations, this may signify increases from negligible figures to 1-2 months’ salary. However, it is still expected to be more positive. We do not foresee big changes in base salaries and they are likely to remain around current levels, with minimal salary increases, possibly in line with inflation. Therefore, we expect total compensation in operations may be slightly above 2014.

Any significant increases within this area would likely be within the regulatory operations space. This niche area of operations is growing, and demand outweighs supply, which makes salary increases probable. The market will still be looking to pay around 15 percent increments, on average, to entice professionals to join and this trend will likely continue.

Permanent banking operations jobs

2014 saw continued offshoring within the banking operations sector. Headcounts within the back office and certain areas of middle office were repositioned in companies to low cost centres. However, 2014 still saw a significant number of replacement hires being made. Professionals moving to other areas of financial services, such as the buy-side, or leaving financial services altogether, left companies in need of high quality, highly trained individuals.

Restructuring within operations saw middle management roles being replaced with more junior hires. In some cases there are examples of management and/or strategic responsibilities being delegated upwards; and daily responsibilities being delegated downwards. Therefore, we expect 2015 to remain positive yet steady. Significant offshoring is not expected this year, as the majority of roles still based in Hong Kong are considered strategically important to remain. In the main, this is based on communication lines, and the benefit of having direct contact (and the ability to build strong relationships) with the front office or with clients.

Professionals with a good understanding of trading risk, as well as the processing side, are in growing demand. Companies are looking for energetic and adaptable people that have a strong base knowledge of the trade lifecycle, who are looking to gain more exposure within the operations space.

Contract banking operations jobs

Contracting has continued to be a steady source of hiring throughout the market last year. In 2015, the majority of businesses in Hong Kong are looking to build on their flexible workforce, with hires being made across the operations space. Contracts include maternity cover, short term projects and longer term contracts covering daily business. Experienced professionals that are able to deliver higher quality work and require less training are in demand, more so than the more junior hires seen on the permanent side. We expect this trend to continue in 2015, with a greater percentage of the workforce being contract hires rather than permanent.

Hedge Fund and Private Equity Salaries

An increasing number of private equity funds to be domiciled in Hong Kong can be observed according to Hong Kong's 2013-2014 budget. Furthermore, the current offshore exemption regulation from the government plans to amend and extend. There is approximately a growth of 23 percent on the total AUM of the Hong Kong-based funds when compared with the preceding year. At the same time with the growing focus of venture capital investment in Greater China, the region has become the largest private equity centre in Asia while Hong Kong has developed strong expertise of investing in Asia in 2014.

Despite recent negativity across the hedge fund industry, including an increased level of fund closures, the total industry assets will reach a new all-time high and is expected to rise by 7 percent, in comparison with the forecast of 2 percent in 2015. With the continuous growth of digital marketing, hedge fund managers are more efficient in delivering information and promoting the firm’s brand in the market place.

In general, the industry is positive in regards to growth and hiring in this space, and the market indicates that new job opportunities will continue in an upward trend.

Role Analyst Associate/AVP VP/Sr.Manager SVP/Director Sr. Director
Basic Salaries (HK$ per month)
Fund / Portfolio Manager $45k - $60k $55k - $70k $70k - $100k $120k - $200k $250k+
Investment Analyst $30k - $48k $48k - $70k $70k - $120k $110k - $150k $150k+
Economist / Invest. Strategist $30k - $45k $45k - $65k $70k - $120k $110k - $170k $200k+
Portfolio Construction $35k - $45k $40k - $55k $60k - $65k $70k - $85k $90k - $115k
Trader $20k - $45k $40k - $65k $70k - $100k $90k - $165k $180k+
Investor Relations $25k - $35k $35k - $50k $65k - $100k $92k - $170k $200k+
Private Equity $35k - $50k $50k - $80k $65k - $100k $90k - $130k $110k - 210k

Investment Banking and Capital Markets Salaries

CORPORATE FINANCE SALES AND TRADING
Basic Salaries (HK$ per month)
Analyst 1 $40k - $60k Sales - Institutional - Analyst $40k- $60k
Analyst 2 $50k - $70k Sales - Institutional - Associate $50k- $70k
Analyst 3 $60k - $80k Sales - Institutional - VP $130k - $160k
Associate 1 $70k - $100k Sales - Corporates - Analyst $40k - $60k
Associate 2 $80k - $110k Sales - Corporates - Associate $50k - $70k
Associate 3 $100k - $120k Sales - Corporates - VP $130k - $160k
VP $130k - $160k Trader - Analyst $40k - $60k
Director $160k - $225k Trader - Associate $80k - $120k
Managing Director $205k+ Trader - VP $130k- $160k
EQUITY RESEARCH
Research Associate $60k- $80k    
Senior Research Associate $100k - $120k    
Writing Analyst $130k- $180k    
Sector Head $180k+    

Last year saw stability across investment banking headcount following two years of decline. We expect this trend to continue into 2015, as primary market activity continues its momentum globally. In terms of positions, product and coverage teams have demand for analysts and associates with the requisite technical and linguistic skills. Furthermore, financial sponsor activity looks set to increase, with demand for professionals with leveraged finance and private equity advisory experience.

Basic salaries amongst front office professionals have remained largely unchanged since the global financial crisis, with overall compensation figures marginally down last year.

On the markets side, we anticipate China A share sales professionals, analysts and strategists will be in demand, due to Shanghai-Hong Kong Connect. There will also be continued demand for H share internet/mobile hardware and property analysts and credit market analysts as the dim sum bond market continues to mature.

Conversely, the luxury goods, gaming and natural resources sectors face significant headwinds in the first half of the year in Hong Kong and Mainland China. As a result, we expect less banking positions focusing on these sectors in the short term.

Year on year, salaries are likely to increase modestly for both primary and secondary markets professionals.

Private Banking Salaries

Role Associate Associate Director/VP Director Executive Director MD
Basic Salaries (HK$ per month)
Private Banker $40k - $55k $60k - $100k $110k - $125k $130k - $150k $160k++
Fund / Portfolio Manager $40k - $50k $50k - $70k $80k - $120k $130k - $150k $150k ++
Invest. Advisor/Consultant $35k - $50k $60k - $80k $100k - $120k $125k - $150k $150k ++
Product Specialist $35k - $50k $50k - $70k $80k - $125k $125k - $150k $150k ++
Trade / Dealer $30k - $50k $50k - $80k $80k - $100k $100k - $130k $130K+
Business Management $30k - 45k $50k - 80k $80k - 120k $130k - 150k $150k ++
Assistant Relationship Mgr. $30k - 50k - - - -
Product Dev. / Mgmt. $35k - $45k $50k - $70k $80k - $100k $100k - $120k $130k++

Hiring activity for the private banking industry in 2014 was very active across various functions. Positions that were most in demand include; relationship managers, relationship manager support and investment consultants at all levels. This demonstrates that the majority of private banks remain keen to expand their sales force in order to become the bank of choice for the growing number of high net worth (HNW) and ultra high net worth (UNHW) individuals across the region.

However, banks frustrated over limited talent pools, have become increasingly open to hiring candidates from investment banking, asset management and corporate banking divisions.

Other in-demand professionals include; markets business managers, dealers, and client documentations specialists. The job outlook of 2015 is positive, as banks seek to maintain the same level of hiring activity as 2014, so as to be in line with future growth plans.

In terms of salary, we expect an average pay rise to be between 5 – 7 percent, reflecting the business needs to retain talent.

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