Data management and financial information professionals in the U.S. and Europe who think that working in the securities industry’s largest firms will pay them the biggest bucks might want to reconsider.
The first survey on compensation for data management and information executives in the financial services industry shows that chief data officers, chief information officers and senior vice presidents at firms with 10 or fewer employees received salaries on average of $172,826, according to survey results compiled by LakeFront Data Ventures of Toronto. That compares to $133,592 for similar executives at firms with more than 1,000 employees.
And when it comes to total compensation, including bonuses and incentives, it’s still executives at small firms that hold the edge. Executives at firms with between 11 and 25 employees earned total compensation of $261,775, on average. By contrast, executives at those with more than 1,000 employees pulled in $176,058 of total compensation, on average.
Of course, the best-paid executive did come at a large firm, pulling in a whopping $1,425,000.
“The smaller firms were likely to have to pay more for experienced executives to compensate for the lack of upward mobility, higher risk or other perceived benefits,” said Dale Richards, chief executive of LakeFront and former director of data management for SunGard in New York. LakeFront defined total compensation as base salary and cash bonus with C-level data management executives having at least 16 years of experience. The study is an extension of its job board which posts available positions and resumes.
The survey of about 300 respondents was conducted in May and June by LakeFront Data on behalf of the Financial Information Services Division of the Software & Information Industry Association. The results were released today.
Respondents from sell-side banks and brokerages constituted just over 25 percent of the respondents – the largest chunk -- while custodian banks and hedge funds made up less than 5 percent. Traditional buy-side firms made up less than 15 percent Those with experience in real-time market data accounted for more than 50 percent of respondents followed by those with experience in reference data.
Here’s how total compensation stacked up by size, on average: Firms with 10 or fewer employees, $213,826; 11-25, $261,775; 26-50, $135,828; 51-100, $192,540; 101-500, $177,952; 501-1,000, $118,375; and, more than 1,000, $176,058.
Among industry sectors, the average compensation for the senior-most executives was the highest for those working on in ratings agencies ($256,400), which even beat out hedge funds ($230,000). By comparison, the average at brokerages and investment banks – the sell side -- was $178,293; and, at asset management, wealth management and other buy side fund firms, $144,273.
By gender, males outdid females in compensation and executives in North America fared better than their counterparts in Europe. Males in North America earned on average $193,212 compared to females at $170,222. In Europe, the difference was wider: $161,261 for males compared to $117,626 to females.
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