AS THE THREATS faced by businesses continue to grow ever-more complex, the spectrum of responsibilities handled by risk managers widens in tandem. And while that greatly expanding
portfolio of challenges is not necessarily reflected in ballooning
compensation packages, salaries in the field do remain
steady—and job satisfaction remains high.
NU’s annual Risk Manager Compensation Survey,
conducted in partnership with Logic Associates, a premier
executive-recruiting firm for risk managers, gathered data on
compensation packages and professional perks and also
inquired about other vital elements of their risk-management
jobs, such as reporting structures and education levels.
Overall average salaries, the survey revealed, are up
just slightly ($1,000) to $120,375, while average bonuses
increased $6,868 to $27,911.
Bill Perry, president of Logic Associates, says one way
risk managers can stand out in the marketplace and
command a salary premium is by having ample experience
managing global risks: “It all comes back to international.
All risk managers should strive to get international
experience and exposure.”
BY
GENDER Mind the (Gender) Gap
$104,587
FEMALE
$23,761
AVG
SALARY
AVG
BONUS
MALE
$131,187
$30,578
$128,348 TOTAL $161,765
The salaries of female risk
managers—who comprised
41 of the survey pool
who chose to reveal their
sex—continue to lag far
behind their male counterparts. In the good-news
department, women are
making about $10,000
more than last year
($118,174). Less positively,
the divide between men
and women actually grew
to $33,417—from just
under $29,000 last year.
AVG
SALARY
AVG
BONUS
TOTAL
$105,946 $6,888 $112,834
$140,273 $38,338 $178,611
$115,007 $16,528 $131,535
$93,350 $1,500 $94,850
$155,986 $42,736 $198,722
$108,580 $8,611 $117,191
$135,138 $22,643 $157,781
$117,500 $625 $118,125
$127,738 $21,536 $149,274
$95,250 $6,333 $101,583
Industry Index
BY INDUSTRY
Service
Retail
Insurance
Government
Manufacturing
Health Care
Construction
Education
Utility
Real Estate
The 10 industry sectors above are listed in the order of the
most respondents to the survey. Risk managers at manufacturing concerns—who oversee an array of challenging risks,
not least of which are serious employee injuries—sit atop the
money list, with an average package just shy of $200,000.
On the Rebound
$150,000
$21,043
TOTAL
$140,418
TOTAL
$148,286
$27,911
$120,375
$119,375
$100,000
SALARY
BONUS
$50,000
2011
2012
The salary news last year was grim: The 2011 survey saw salaries
down more than $10,000 from 2010 levels, and overall compensation, with bonuses, dropped more than $8,000. In line with a generally improving economy, the news this year is marginally brighter:
Risk managers got back all the income they lost and a little bit more,
seeing about a 1.3% gain over the total two years ago ($146,406).
Hardly a figure to be dancing in the streets about—but that’s risky
behavior anyway.
Less than $500 million
$500 million-$1 billion
$1-2 billion
$2-4 billion
$4-7 billion
$7-12 billion
More than $12 billion
COMPANY SALES VOLUME
Bigger Is Better
BIGGEST GET THE BONUSES
AVG
SALARY
$102,993
$105,920
$136,251
$145,829
$166,200
$152,080
$127,967
AVG
BONUS
$28,270
$17,942
$21,087
$26,329
$39,000
$36,924
$53,653
TOTAL
$131,263
$123,862
$157,338
$172,158
$205,200
$189,004
$181,620
To get on the most-recent Fortune 500 list required companies to do
at least $4.3 billion of business—and those risk managers working
at firms at that revenue range and higher are the best paid. But in a
trend that continues from last year, risk managers at the largest tier
of companies no longer enjoy the greatest total compensation—but
their bonuses still dwarf the competition.
