As ACA results are announced this week, research shows that remuneration packages for newly qualified ACAs have once again risen to record levels. The average total compensation package offered by investment banking and financial services employers in London is now worth up to 65,000 a year according to Morgan McKinley.
ACA qualified product controllers within investment banking can now command an average basic annual salary of 52,000, up 6% on 2005 and 22% on 2003 levels. Average bonus payments are adding a further 13,000 onto pay packets, bringing their total average take home pay to 65,000 per annum. The same upward trend has been seen for those newly qualified ACAs working in financial control and internal audit within investment banks with total compensation packages averaging 58,800 and 54,000 respectively.
The growth pattern in remuneration packages witnessed over the last four years for newly qualified ACA accountants (up to two years experience) has been driven by rising demand from Londonís financial institutions in conjunction with reduced levels of availability. Cutbacks in graduate intake numbers by the large public practice firms in 2002/2003 is continuing to affect the size of the 2006 candidate pool and in turn the levels of remuneration these individuals can command.
Robert Thesiger, Chief Executive, Morgan McKinley, comments:
ìThe ACA qualification has always been held in high regard by financial organisations in the City. The continual rise in total compensation packages for these individuals is testament to the value they place on the qualification as well as the desire to secure these individuals in what is an extremely tight candidate market.
ìInternal audit has definitely moved up the corporate agenda over the last few years with the increase in related regulation but due to the simultaneous expansion in banking activity weíve not seen internal audit salaries soar above those of financial and product controllers.î
ìThe level of remuneration recently qualified ACAs will receive will be dependant on their experience and while the average salary for a product controller may be 52,000, exceptional individuals will push the 57,000 mark. If they work for one of the best performing banks, this could be topped up by a 30% bonus.
ìThere are also new routes into investment banking opening up for newly qualified ACAs. For example, corporate finance and equity research divisions are now willing to hire talented newly qualified ACAs at entry level and train them into roles. In the past, ACAs wanting to forge careers within these areas would have had to have had previous banking experience behind them first. ACAs are in an enviable position right now as there are a host of career paths open to them. However they should think carefully about their next career move and consider all options to ensure they take the right route from the outset.î
