Hiring Rebounds In Wealth Management Industry

After two years of contraction, hiring in the asset and wealth management industry rebounded in 2010 and compensation increased modestly, according to Russell Reynolds Associates.

"There was a shift at the beginning of 2010. Firms said, 'we have a huge expense which is IT and is highly siloed," relates Justin Cerilli, a member of the information officers within the technology sector at Russell Reynolds Associates. "Companies were feeling cost pressures. But there was a dramatic change. Firms said, yes we need to be cost conscious but we also need to drive value."

While compensation across the industry showed minimal increases in 2010 - with 0-20% raises - hiring is on a roll. It is set to continuing growing in 2011 and the number of searches at the top level of organizations will increase, Cerilli says. "And technology will get a better seat at the executive table. "

Cerilli notes that at the beginning of 2010, chief architects and heads of infrastructure were in high demand as firms were focusing on service improvement, creating shared services, and creating a strategy that could lay the foundation for growth.

As 2010 progressed however, firms focused more on product development and research and as a result hiring activity around CIOs and CTOs increased.

"Firms are looking to recruit, CIOs, CTOs and heads of operation that can really drive business performance," Cerilli says. "The CIOs and CTOs we look for are ones that don't just keep operations running well but ones that are actually driving business. CTOs are the next level of CIOs who are thinking more about product base."

Demand for CEOs with investment backgrounds continued into 2010, but finding qualified individuals with the desired mix of leadership and technical skills proved increasingly elusive, according to a Russell Reynolds report.

Meanwhile, chief investment officers were in high demand this year as endowments, foundations, pension funds, family offices, sovereign wealth funds and asset and wealth managers were in the market for talent, Russell Reynolds said in its 14th annual report, "Navigating the New Terrain in the Asset & Wealth Management Industry - 2010 Recruiting and Compensation Trends."

Cerilli points out that many larger companies have started outsourcing T&O functions rather than expanding in-house.

"In the asset management industry, they're looking to outsource providers for some commodity services - heads of operation, infrastructure, vendor management. Ones who know to automate services for our clients are in high demand," he says.

Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio