It’s been a while since our last Risk Talent Market Update. We’ve been too busy to produce one, which in our world is good news; but is it bad news that we have the bandwidth to get one out now? It’s hard to say yet, but summer is always a slower time, and there is a combination of low-level inflation/recession concerns and the fintech’s experiencing a “shakeout” that has eased demand for risk talent a bit. There is still solid activity, but we’ve been afforded the time to breathe again.

Talent Supply/Demand

Demand for risk talent has been the highest we’ve seen in several years. It began with a flood of openings that were on hold since 2020 (due to Covid) coming back online in 2021 alongside 2021 talent needs, then it really took off as 2021 ended, straight through Q1 and Q2 2022, making the demand line look like a hockey stick.

Demand continues to outstrip the supply of technically inclined risk, portfolio construction, and quantitative/analytical professionals at all levels. Hedge funds and crypto made up a large portion of that demand, however, we’ve been seeing demand coming from traditional asset managers as well, where there was only flat to minimal growth over the past few years. Demand for more technical risk professionals has grown there as exposure to derivatives and private assets has increased. Some of these firms have split the quants from the risk managers, perhaps in an effort to obtain appropriate talent.

The alts, on the other hand, continue to seek out “all in one” quantitative talent that understands risk, portfolios, and asset classes/markets but that can also communicate complex concepts with clients, PMs, and leadership.

Compensation Trends

Demand has pushed up comp and challenged most firms who have had to make great efforts to keep their talent from walking out the door. We are still hearing about risk leadership losing talent to 30% – 50% increases in comp. Talent was ready to jump for growth opportunities and new/exciting opportunities to build out new frameworks and teams, many times in less regulated markets with a chance for a big equity payoff in the future.

Many are seeking better work/life balance and WFH options post covid, yet the major names out there (usually the top payers) are holding strong to having staff back in the office. However, firms who are flexible with WFH or open to remote only have been able to manage compensation growth by hiring in less expensive markets or finding higher priced talent that is open to taking a pay cut to WFH and not go in on a regular basis.

Other Trends & Topics of Interest

  • Crypto/DeFi was barely mentioned in our past market updates; now, it has its own section as we see more major funds and banks considering the risks and stepping into the space (Brevan, Point72, Blackrock, etc.). We’ve seen a number of TradFi risk professionals make the move over (see below).
  • ESG and Climate Risk continues to be an important topic falling into the CRO’s sphere of influence, we’ve seen a few risk organizations add climate risk professionals (the definition of which varies widely) or add it to an existing risk leader’s mandate.
  • Post-Covid shifts in work flexibility continue to be a factor in attracting and retaining talent – candidate expectations of at least some level of flexibility have solidified, yet leadership continues to value the exposure and growth their team gains from working face to face with other people in the firm. Most of the alts and top name ibanks expectations are FT in office, the cryptos falling more into the fintech/tech arena are extremely flexible. Many of the large alternatives have found some middle ground by opening “outpost” offices in CO, FLA, and CT to provide options.
  • The shift to Florida continues – we are seeing firms either open offices in Florida or move their business there entirely. Notable firms include Icahn Capital, Blackrock, Citadel, Apollo, Elliott, and Point72. It’s a growing hub for fintech, we’ve been watching this trend for some time and excited for the potential future need for a Spire Search Partners office to work from during the cold/dark NY winter.
  • Diverse talent continues to be an important topic amongst the major banks and PE firms, but less so amongst the hedge funds and fintech. Our experience in this area continues to equip us to win searches where a diverse slate of talent is required.

Notable Market Moves

ASSET MANAGEMENT / INSURANCE

  • Jacques Longerstaey has retired from TIAA where he was EVP, Chief Risk Officer, Financial Risk & Capital Management. Trey Stenersen, Senior Managing Director and Head of Investment Risk at Nuveen transitioned into the CRO role. Mary Beth Ramsay, formerly the SVP & Actuary, Head of Client Solutions at SCOR, joins TIAA/Nuveen as EVP, Head of Risk & Compliance and Head of TIAA Financial Risk.
  • Benjamin Seidlich transitioned from SVP, Co-Head Investment Risk to sole SVP, Head Investment Risk at Franklin Templeton, replacing Suzanne Akers, who will join Alberta Investment Management Corp. as CRO.
  • Tilak Lal transitioned from Head Of Risk at Lighthouse Investment Partners to Head of Risk at Luminae Partners which is a diversified division of Lighthouse Investment Partners. Tilak was SVP and Co-Head of Investment Risk at Franklin Templeton Group.
  • MetLife promotes Claudia Cromie to CRO, MetLife Investment Management. She joined MetLife in 1990 as a credit analyst and most recently served as Managing Director, Portfolio and Risk Analytics.
  • Wolfram Peters, former Global Chief Risk Officer at Allianz Global Investors, joined Credit Suisse as CRO Asset Management.
  • Lee Marks joins Edelman Financial Engines as CRO, he joins from Willis Towers Watson where he was a CRO.
  • Andrew Peters joins NY Life Investments as MD, Head of Investment Consulting Group from Invesco where he was the Head of Alternatives Risk.
  • Sarah Williams joins Guardian Life as CRO to evolve the risk management program. She was a former deputy CRO at life insurer Global Atlantic and is now embarking on tasks including the development of asset and climate risk oversight at Guardian Life.
  • Admiral Group appoints Keith Davies as Group Chief Risk and Compliance Officer. He will report to Milena Mondini de Focatiis, Admiral’s Group CEO. He joins from Federated Hermes Limited where he was Chief Risk & Compliance Officer.
  • Tom Bolt has transitioned to Executive Vice President and Chief Risk Officer at AIG. He replaces Sabra Purtill, who was recently named Executive Vice President and Chief Investment Officer for AIG’s Life & Retirement business.
  • Jason Evans, formerly Portfolio Manager of DRW has joined Alphadyne Asset Management as CRO.
  • Dan Rodriguez, former CRO of Light Sky Macro, LLC, joins P. Schoenfeld Asset Management as CRO.

CRYPTOCURRENCY

  • Galaxy Digital appoints Felix Cua as CRO. He joins from Capstone Investment Advisors where he served as CRO.
  • Anchorage Digital Bank appoints Rachel Anderika as CRO, she joins from Silicon Valley Bank where she was the Head of Risk Governance Oversight.
  • Genesis Global Trading appoints Michael Patchen as CRO, he was formerly the CRO at AQR Investment Management.
  • Chris Davis, formerly Head of Risk of Binance.US has joined Wyre as Head of Risk & Compliance Platforms and Program Management.
  • BlockFi appoints Christopher Spicer as the Head of Credit Risk and Underwriting. He joins from Morgan Stanley where he led three global teams in Credit Risk Management. Chris Perez, formerly Managing Director of Goldman Sachs, joins BlockFi as MD Head of Market Risk and Quantitative Analysis. They both report to BlockFi’s CRO Yuri Mushkin (former ED at Goldman Sachs and CRO of The Beneficient Group).
  • Ripple appoints Barry Joseph as Chief Risk Officer. Prior to this, he was a CRO at Settle.
  • BitMEX appoints Marcus Hughes as CRO, he joins from Coinbase where he was the Managing Director, Europe and General Counsel, International.
  • Protego Trust appoints Don Andrews as CRO, he joins from City National Bank where he was a Wealth Management Chief Compliance Officer.
  • FTX US Derivatives appoints John Paul Rothenberg as Deputy CRO. He joins from the U.S. Commodity Futures Trading Commission where he was a Risk Analyst.
  • Julie Schoening, former Surveillance System Architect at Alphadyne Asset Management, joins FTX US Derivatives as CRO.
  • BitGo appoints Ali Hayat as Director of Risk Management. He joins from Ernst & Young, where he was a Manager, ITRA, FSO.
  • Robinhood appoints Jaad Barakat as Director, Operational Risk. He joins from Charles Schwab, where he served as Director.
  • Bitnomial appoints Steve Ivey as CRO, he joins from Rosenthal Collins Group where he was the CRO.