FDs scrambling up and down the greasy pole

Posted by Janice McGinn in Strategy & Planning, Management & Execution, Time out on Tue, 15/12/2009 - 15:16

Research from the Reward Technology Forum shows that number of FTSE100 FDs and CFOs jumping ship in past year has escalated compared to previous years.

The number of FTSE 100 FDs who stayed with existing employers was only 79, markedly down from the previous year’s 94. Reasons vary but include the ripple effect of recession and redundancies alongside a marked demand for certain skills. Peter Newhouse, co-author said those “with mobile skills across different industries are in demand.”

Talking to the wallet works
The average FD remuneration including bonuses and pensions dropped by 16% to £487,531 although the average salary increased by 3.8% to £475,602 and the increase in changi8ng jobs almost certainly reflected better short or long term remuneration. Newhouse said, “it’s no surprise that staff turnover in this key position has increased dramatically."

A separate survey of FTSE 100 and Fortune directors in the UK and US by the FT and McKinsey Rogers illustrated a different picture.
  
“While financial skills are important in the recession, the four top skills for recovery are leadership, strategy innovation and sales. Financial skills came only fifth.”

The Bottom Line:If Mr Cable has his way...

"If Mr Cable had his way, all the big banks would be broken up and bonuses would be virtually eliminated - a sure-fire way in my view of guaranteeing an end to the UK’s ability to compete as an international financial centre. Let’s not forget that this is a man who is on record as saying that everyone who works in a bank has an ‘aristocratic lifestyle’ clearly demonstrating his lack of understanding of the sector." A tough line on bankers’ bonuses could make a brain drain of financial talent a distinct possibility, warns Paul Marsden. Read more

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