Compensation and Market Trends

Mid-Year Report 2016Internal Audit

Welcome to Barclay Simpson’s 2016 Internal Audit Compensation Market Trends ReportBarclay Simpson has been producing corporate governance market reports since 1990. As usual, this year we are producing two internal audit reports. We use our Mid-Year Report to update our Annual Report and as an opportunity to focus primarily on compensation. This report seeks to provide insight and guidance into compensation within internal audit. It is supported by a comprehensive survey of internal audit professionals registered with Barclay Simpson in June 2016. Clearly the approximately 400 respondents are not entirely representative, as they are internal auditors who have registered with a recruitment consultancy and have taken the time to complete the survey. There are no doubt many internal auditors who go through their entire career without doing either. Nonetheless, the results make interesting reading and comparisons with previous years provide useful insights into the changing shifts within internal auditing. Comparable reports exist for all other areas of corporate governance. They can be accessed in section 6 of this report (“About Barclay Simpson”) or at www.barclaysimpson.com.

We place great value on the professional reaction to our reports and would appreciate your comments and any further requests for clarification or information.

BARCLAY SIMPSONCOMPENSATION AND MARKET TRENDS REPORT

2016INTERNAL AUDIT

1 ExECUTIvE SUMMARY p 12 MARKET ANALYSIS p 23 MARKET COMMENTARY p 34 SECTOR ANALYSIS p 45 SALARY GUIDE AND COMPENSATION SURvEY p 7 5i KEY CONCLUSIONS p 8 5ii OvERvIEW p 95iii GENERAL RESULTS p 135iv SALARY GUIDE p 23

6 ABOUT BARCLAY SIMPSON p 26

CONTENTS

OfficesLondonNew YorkDubaiHong KongSingapore

DisciplinesInternal AuditRiskComplianceSecurity LegalTreasury

Living with Brexit uncertainty

We wrote at the start of the year about the value of stability and the way it lifts demand for internal auditors. Like many others in the recruitment industry, we were anticipating that any demand suppressed by the uncertainty of Brexit would result in an uptick in demand as the vote was settled in favour of the status quo. Clearly this did not come to pass and the result has only increased the level of uncertainty. For both clients potentially looking to recruit and candidates looking to change job the result increases the value option, at least in the immediate aftermath, of doing nothing.

Banks more exposed?Our expectation, provided a serious economic reversal can be avoided, is that after a period of uncertainty, the broader recruitment market will live with Brexit. Ultimately, even in periods of uncertainty, recruitment decisions need to be taken by both candidates and clients. However, some sectors are likely to be hit harder than others. The Tier 1 banks based in London, for example, may well become victims of strategic decisions which are likely, in turn, to reduce the number of internal auditors employed. There may be some comfort that many of these banks were already rationalising before Brexit and a potential positive for the internal audit recruitment market is that it will be less dominated by these banks.

The consequences of Brexit will no doubt have become clearer by the time we produce our annual market report at the start of 2017. In the meantime, as usual, this report focuses on compensation and the results of our annual survey.

Our survey was conducted before Brexit and it is possible that some of the sentiments expressed may subsequently have changed. The compensation data will not.

Earnings still upAt the start of 2016, real earnings and overall employment numbers were still growing strongly. In spite of this, our survey found a modest slowdown in the number of internal auditors changing jobs and, in common with some other areas of corporate governance, an uptick in the percentage of internal auditors reporting they were not working. However, given the value companies place on retaining high quality internal auditors, even in more subdued recruitment market conditions, average salary increases in internal auditing, have exceeded those in the wider economy.

Salaries have risen from 5.5% in 2015 to 5.7% in 2016. In a low inflation environment this is a good result and one acknowledged in our survey as more internal auditors reported they felt adequately compensated.

What is important to internal auditors? In this year’s survey we included some questions about how internal auditors feel. Whilst there was a strong sentiment that their skills are becoming more valuable, which is certainly reflected in salary increases, there is not a universal belief that their employment is becoming more secure; something Brexit will have done little to enhance. Whilst salary is important to internal auditors, so is career development and work / life balance. These are sentiments that Heads of Audit looking to retain their staff should recognise.

ExECUTIvE SUMMARY1

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“After a period of uncertainty and deferred decision making, the broader recruitment market will live with Brexit. Ultimately, even in periods of uncertainty, recruitment decisions need to be taken by both candidates and clients.

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MARKET ANALYSIS2

Vacancies

vacancy generation falls backvacancy generation increased during the second half of 2015 and, when asked at the start of the year, 85% of Heads of Audit anticipated a need to recruit externally during the course of 2016. In terms of vacancy generation this confidence has followed through with one notable exception which has affected the total number of vacancies generated. We have previously reported the scale of many Tier 1 bank internal audit departments and their ability, when they continuously have multiple vacancies, to distort the recruitment market. Many of the banks driving this weight of demand are now looking to rationalise. This has changed, possibly for the better, the composition of demand in the recruitment market.

Outside of these major banks, the financial services industry has continued to recruit and the number of internal audit vacancies across commerce and industry has increased. Whilst there was already strong demand from the consultancy sector, which remains determined to recruit and retain internal auditors, there has also been a notable uptick in demand from the public sector, albeit from low levels. Given this, whilst the absolute number of vacancies has fallen, overall, internal auditors are facing a more representative range of vacancies and a market that will be less distorted by the influence of a relatively small number of Tier 1 banks.

Rate of placementsRate of placements decliningTo provide a better insight into the dynamics of the recruitment market, this graph plots the rate at which placements have been made across the last four years. It reflects the rate at which vacancies are actually being filled. At the start of 2016, 73% of Heads of Audit reported they were finding it difficult to recruit. This was little different from 2015. However, during the first six months of 2016 the rate of placements slowed further. The response from our survey indicates that the percentage of internal auditors reporting to have changed job in the last 12 months has fallen from 32% in 2014, to 29% in 2015 and down to 28% in 2016.

This year there has been a significant fall in the number of internal auditors in banking changing jobs and a compensating rise in commerce. Internal audit departments however, remain highly selective. Getting internal auditors with in demand skills who often have multiple opportunities to accept and start new positions is frequently problematic. This is not news, but, notwithstanding the experience and skill sets required which can often be quite specialist, attracting internal auditors with the necessary interpersonal skills remains a key challenge. Internal audit departments are keen to retain their expertise, resulting in frequent counter offers which can include both salary increases and promotions. It is ironic that internal auditors in the recruitment market often find themselves with either multiple offers or none at all.

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- Placement rate

- New vacancies- Outstanding vacancies

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MARKET COMMENTARY3

More pay, less security

Earnings in the wider economy have been increasing at the fastest rate for some years. These rises are certainly reflected in the internal audit recruitment market, where they are being driven by the chronic shortage of internal auditors with the skills required. The increase in salaries for both internal auditors who have stayed with their existing employer or moved are both up. For those who stay, salary increases are often wrapped in promotions that in the short term are more likely to encourage internal auditors to remain with their current employer.

Internal auditors are more satisfiedGiven these increases, it is not surprising that a higher percentage of internal auditors report they feel adequately compensated. Up from 58% in 2014, to 63% in 2015 and now 66% in 2016. Whilst salary remains a key issue, in this year’s survey, for the first time we invited internal auditors to report on what they would most like to change about their job. 28% chose salary, another 28% career development and 20% work / life balance. Clearly work satisfaction is not simply about salary.

No simple message In this year’s survey we also gave internal auditors the opportunity to share what they might like to say to their employer. If we were hoping for a clear simple message, this was not forthcoming. Responses focused on the issues above, with subsidiary messages objecting to the amount their internal audit departments spent on external consultants and the lack of recognition some internal auditors

felt for the work they undertook. There was, however no seething hotbed of resentment and many were grateful to their employers, enjoyed their job and were satisfied with their employment relationship. Given many Heads of Audit are limited in what they can spend in terms of a strategy to retain their internal auditors, career development, recognition and flexible working would be good places to start. In spite of this, there are clearly many occasions when internal auditors simply outgrow a department and for career development reasons need to move.

Rise in internal auditors not workingThe surprise of our survey was the rise in the percentage of internal auditors not working. This rise stands out against the recent history of our surveys and our day to day experience of the recruitment market. Whilst not out of line with the results from our other corporate governance surveys, it was still surprising. Explanations are possibly to be found in banking, where a number of larger banks have looked to rationalise, leading to internal audit casualties. There are also comparatively high levels of outsourcing, near sourcing and off shoring as companies in the wider economy have looked to re-organise their internal audit capabilities. Internal auditors who are not working also report they are finding it more difficult to secure a new position than anticipated. The majority report they have been looking for over three months. Unemployment is proportionately higher in internal audit than IT audit and outside of London than in it. By way of explanation, there is frequently little between an internal auditor having a background that is in demand and one who has not. As ever, IT auditors are proportionately in higher demand and, whilst there is a drift

in audit departments away from London by some of the larger banks and financial services groups, the lower number of vacancies outside of London and the commuting distances involved can make it difficult for internal auditors in the regions to find alternative opportunities.

Less security?Two new questions in this year’s survey asked internal auditors if they felt more or less secure than a year ago and if they perceived their skills had become more or less valuable. Surprisingly, 23% of respondents felt they had become less secure, which was broadly consistent across sectors and between internal and IT audit. Against that, 61% believed their skills had become more valuable, with only 9% reporting less so. Again the responses were consistent across sectors and between internal and IT audit. It seems a little at odds that whilst internal auditors believe their skills are becoming more valuable, a significant minority feel less secure. Whereas 45% of internal auditors who have not changed job in the last year feel less secure, this figure falls to only 21% for those who have changed job. As might be expected, changing jobs should usually allow internal auditors to feel more secure.

“The surprise of our survey was the rise in the percentage of internal auditors not working.

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SECTOR ANALYSIS4

BANKING AND FINANCIAL SERVICES

Possibly one of the most eye catching results of our survey was the slowdown in the number of internal auditors working in the sector who reported to have changed job in the last year. This figure was down from 35% in 2015 to 23% in 2016, with most of the slowdown concentrated in banking. Whilst salary remains a key driver for internal auditors working in banking and financial services, the increase achieved through changing jobs has fallen from an average of 19.6% in 2015 to 15.8% and, for the first time, fallen below the overall average.

Demand from the traditional London banking market has fallen back, with far fewer Tier 1 banks having the multiple vacancies that were common last year. These banks are recruiting to replace, rather than to increase the number of internal auditors they employ. However, on the positive side there has been strong demand from challenger banks and larger regional banks including those looking to establish support functions away from London. It is perhaps too early to predict the effect Brexit will have on the sector, although in the short term it is unlikely to be positive for more internationally focused banks.

Delivery level roles, as ever, are in high demand and the number of manager level roles are increasing. Specific expertise in demand includes large change and transformation projects, regulation and subject matter experts in areas such as credit risk, financial crime, finance and treasury. Applicants with subject matter expertise but no audit experience are also being actively considered by a number of banks. Internal auditors with capital markets and investment banking products

experience remain difficult to recruit, with smaller banks and asset managers frequently in a better position to offer the type of flexibility in the offers they make to secure such candidates.

The introduction of the new approved person requirements for senior level audit staff is slowing offer / acceptance processes and making the appointment of Heads of Audits more protracted.

Demand for internal auditors within the asset and wealth management sectors remains strong and the number of internal auditors employed in the sector and their caliber continues to grow. This is substantially regulatory driven, as UK, European and even global legislation comes into effect. However in response to increasing costs there has been consolidation in the sector with groups merging or being taken over. Demand is notably strong from smaller companies in the sector as they look to build out what are sometimes only recently established internal audit departments.

Co-sourcing remains popular and the Big 4 are increasing salaries in their search to recruit experienced asset management auditors.

Mergers in the insurance sector have resulted in redundancies, although most recently new roles have been generated from the resulting combined groups. The impact of the Senior Manager Regime is having an effect with some Heads of Audit strengthening departments to help protect themselves.

As usual, the main weight of recruitment remains at senior auditor level and applicants from practice with say 1-2 years’ relevant experience are in significant demand. Candidates with this type of background are invariably in short supply.

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There has been strong demand from challenger banks and larger regional banks. It is perhaps too early to predict the effect Brexit will have on the sector, although in the short term it is unlikely to be positive for more internationally focused banks.

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COMMERCE AND MULTINATIONAL GROUPS

The average salary increase achieved by internal auditors who have changed job in the sector is 16.1%, beaten only by the consultancy sector. Gratifyingly, a particularly high 79% of internal auditors working in the sector report they are satisfied with their remuneration and only 17% report that salary was the most important aspect they would like to change about their job. Closer analysis reveals that salary increases were larger from companies outside of the FTSE 100. This is surprising, as usually we would expect bigger companies to pay higher salaries. By way of an explanation, smaller UK centric groups may be benefiting from greater flexibility to vary the salaries they are able to offer. How that will develop post Brexit remains to be seen.

Notwithstanding the high level of internal reorganisations already highlighted, there has been comparatively strong demand within manufacturing, TMT and, perhaps surprisingly, the retail sector. Commerce is benefiting from the slowdown in demand in the banking sector which so often diverts candidates away from it. There has been an interesting reversal, with internal auditors in commerce reporting that they are far more likely to have moved than those in banking and financial services. Lead or senior internal auditor roles with highly competitive salaries are currently common, with an uptick in demand for Head of Internal Audit roles. Good financial / operational audit experience together with any exposure to IT audit is in demand. There is also a common requirement for prospective recruits to be qualified accountants and follow the two year passage through internal audit and into

a line role. Given the shortage of Big 4 qualified accountants, companies in the sector have been prepared to consider mid-tier candidates as well as European internal auditors willing to relocate to the UK. There is currently increasing evidence that a number of companies, particularly in the TMT sector, are prepared to pay above average sector salaries to attract the candidates they require.

PUBLIC / NFP SECTORS

Demand is rising and internal auditors in the sector are feeling more secure. In fact, no public sector internal auditor reported entering the recruitment market because of job insecurity. Recruitment freezes are being lifted and both the salary increases enjoyed by internal auditors either staying with their existing employer or moving are rising. A curious finding in our survey was that, when asked what they would most like to change about their job, 17%, a much higher percentage than any other sector, reported their manager. Public sector internal auditors appear less concerned about career development than in other sectors.

Notwithstanding the general recovery in the sector, it remains at risk of losing staff to internal audit providers, particularly those auditors who are qualified or approaching qualification. Whilst there is still no consistency in demand from the public sector, key vacancies are now more likely to go out to external recruitment. Within Central Government, the GIAA has become dominant as they build out capacity from the current 400 internal auditors up to 600. Their recruitment is not just attracting public sector auditors, but, with a new agency style of working, also those from the private sector.

IT AUDIT

According to our survey, 71% of IT auditors believe their skills are becoming more valuable and, at 18.1%, they continue to benefit from higher salary increases when changing job than their colleagues in general audit. A higher salary is also what they would most like to change about their job. Surprisingly, they do not feel any more secure than their colleagues in general audit. Cyber security, data and IT outsourcing are high on the regulatory agenda and are therefore on many internal audit department’s priority lists. Application auditors with specific product knowledge are still in demand, as are more junior infrastructure specialists. Both are also in short supply. The Big 4 and consultancies are using a combination of salary increases, promotions, secondments and training opportunities to retain staff.

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Cyber security, data and IT outsourcing are high on the regulatory agenda and are therefore on many internal audit department’s priority lists.

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Internal audit departments are generally more keen to recruit cyber security professionals into audit, although this can be problematic given the already high demand in security. Auditors with IT and change audit experience are also in demand. These roles are often appealing due to their variety and are also less sector specific. Given the scale of demand, there has been an increase in candidates from the EU filling these vacancies, although tier 2 visa sponsorships are still unlikely to be offered to those outside the EU.

CONSULTANCY

There is still strong demand from the Big 4 and they continue to use retention strategies that include accelerated promotions and highly competitive salaries. Mid-tier consultancies are currently engaged in comprehensive recruitment campaigns and remain constantly at risk of losing staff to in-house recruitment departments. At 9.2%, which is far higher than any other sector, the average salary increase achieved by internal auditors staying with their employer reflects this. In spite of this, only 37% of internal auditors working in the sector are satisfied with their salary and 34% list salary as the thing they would most like to change about their job. These percentages are far higher than other sectors and, given that internal auditors in the sector believe that their skills are becoming more valuable, it indicates that if consultancies wish to retain their internal auditors, salary pressures within the sector are likely to continue. This is borne out by the fact that, according to our survey, as in the public sector, no internal auditor entered the recruitment market as a result of job insecurity.

THE CONTRACT MARKET

Demand for internal audit contractors slowed in the first half of 2016 and our survey confirms that contractors are more likely to believe the market for their skills has deteriorated. They do, however, report slightly higher satisfaction with their current contracts. The run up to Brexit caused uncertainty and given the decision to leave this is likely to continue. However, this uncertainty may ultimately benefit the contract market, as many companies choose to hold off permanent recruitment and decide in favour of the contract opion.

Currently, demand is weighed towards the financial services sector, with particular demand for contractors with investment and retail banking and insurance industry experience. Demand from commerce and industry is relatively flat with lower demand from the consultancy and public sectors. Regional demand is currently stronger, most of which appears to be back-filling permanent vacancies given the extended time it can take to fill these roles.

Regulatory pressure within financial services is leading to more sustained demand for specialist day rate internal auditor contractors. In fact, the trend towards fixed term contracts, rewarding contractors on a pro-rata salary basis, has reversed with traditional day-rates now usual. This is the preferred option for ‘career contractors’ and is a positive for the contract recruitment market.

Within IT audit, demand has been focused on auditors with data security, cloud, data loss prevention and systems development experience. Within banking there has been specific demand for IT general controls and applications experience to support trading activities and the trade process lifecycle.

The run up to Brexit caused uncertainty and, given the decision to leave, this is likely to continue. However, this uncertainty may ultimately benefit the contract market, as companies many choose to hold off permanent recruitment and look for contract solutions.

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Our Mid-Year Report provides an in depth section on salaries and compensation, designed to give a much fuller picture of overall remuneration packages.

Most internal auditors are keen to know their market worth. This is not always easy to address. Two otherwise similar internal auditors may enter the recruitment market and accept materially different salaries. We provide this caveat because we are aware that the internal audit recruitment market is sufficiently diverse that it defies simple categorisation. However, internal and IT auditors, along with their employers want guidance and this is what we attempt to provide.

As recruitment consultants we are involved in the negotiations that take place between employers and prospective employees. We are aware that whilst salary is usually the most important factor, there are a number of others that go to make up total remuneration. In addition to the data we gather from the placements we make and the recruitment work we do, including contact with internal audit and human resources departments about salary and other benefits, we have also conducted a Compensation Survey to provide specific detail on all different types of remuneration within internal audit.

This is a survey of internal auditors registered with Barclay Simpson and was conducted in June 2016.

Covers both permanent and contract marketsIn addition, we also conducted an Interim Compensation Survey focusing on the contract market. We have incorporated the key findings into this report to make it as easy as possible to understand the full picture for internal audit.

We hope that you find the results interesting. This report provides the key highlights of the Survey. If you would like more detail about your specific sector or role, please call Adrian Simpson on 020 7936 2601 (as@barclaysimpson.com).

This section is broken down into 4 parts:

1. Key Conclusions – Key conclusions from the Internal Audit Compensation Survey

2. Overview – Commentary on the major trends in the salaries and other benefits paid to internal auditors

3. Compensation Survey – Results of Compensation Survey completed by internal auditors

4. Salary Guide – Guide to salaries for specific internal audit roles and positions

Internal Audit2016 SALARY GUIDE AND COMPENSATION SURvEY

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General satisfaction with remunerationp 66% satisfied with current level of remuneration, up from

63% in 2015

p Bonuses almost universal, increasing in level and are now 17% of base salary

p Pension benefits increasing (average contribution up from 9% in 2015 to 10% in 2016)

p At £4,300, the value of other benefits continues to be significant and little changed from 2015

Proportion of women continues to increasep The percentage of women working in internal auditing is

steadily increasing: 22% in 2014, 25% in 2015, 27% in 2016

p 24% of managers are women, against an overall representation of 27%

p The proportion of women working in consultancy and IT Audit is lower

Recruitment activity broadly stablep 28% of internal auditors have changed job in the last 12

months, down from 29% in 2015

p Activity has increased in commerce and industry (up from 30% in 2015 to 41% in 2016) and dropped in banking and financial services (down from 35% to 23%)

Moving job remains key to salary increasesp Average salary increases for internal auditors staying with

their employer up slightly to 5.7%, from 5.5% in 2015

p Average salary increase for those changing employer up to 16.1% from 15.1% in 2015

Potential positives and negativesp 61% believe the value of their skills is increasing, with just

9% feeling they are decreasing

p Increase in percentage of internal auditors reporting they are not working (up from 2% to 4%)

p 23% feel less secure than a year ago and are more likely to enter the recruitment market as a result.

Work / life balance increasingly importantp Significant increase in flexible working (up from 62% to 68%)

p 67% would like even more flexible working

p Work / life balance together with salary and career development are key to what internal auditors would like to change about their job

Positive but mixed sentiments from the contract marketp Contractors marginally less likely to believe they are

adequately compensated - down from 74% in 2015 to 72% in 2016

p Overall, contractors are more likely to report they are satisfied with their current contract - up from 74% in 2015 to 79% in 2016

p Salary increases for IT auditors changing job (18.1%) are significantly more than for general auditors (15.3%)

p However, general auditors are less satisfied with their remuneration than IT auditors (59% v 68%)

p IT auditors are less likely to have changed job (20% v 31% in general audit)

IT audit

The results of the Barclay Simpson 2016 Internal Audit Compensation Survey reveal internal auditors are becoming more satisfied with their compensation. However, the attitudes and rewards of internal and IT auditors between different sectors, regions, genders and other classifications are many and various. We hope you find the results interesting.

5iKey Conclusions

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Whilst salary is not the primary motive for internal auditors seeking another job, most will not unreasonably expect to better their salary. Our survey indicated that 73% (a decline from 76% in 2014) of internal auditors who had changed employer in the last 12 months were now content with their salary against 59% of those who had not changed employer.

Motivation for potentially entering the recruitment marketWe asked this question for the first time last year. It is useful to have comparatives and the response this year is consistent with last year. Whilst career development remains the most likely reason, 34% of internal auditors cite salary, up from 17% of those internal auditors who have actually changed job. We suspect that salary is a bigger motivation than internal auditors “post move” are prepared to admit.

Q - If you were to look for another job or go for an interview, what would be the most likely reason?

Motivation for entering the recruitment market This analysis looks at what motivated internal auditors to change employer in the last 12 months. Career development remains the key driver, followed by a better work / life balance. Job security as a motivation has crept up which we ascribe to more companies than usual currently looking to relocate, merge or otherwise reorganise their internal audit departments. Downsizing in banking, as many of the larger established banks rationalise or relocate departments, is another source of insecurity amongst internal auditors. However, it is eye-catching that no internal auditors working in either consultancy or the public sector reported job security as a motive.

Career development as a motivation remains particularly high in banking and financial services and a staggering 80% of internal auditors working in consultancy reported career development as their principal motivation for entering the recruitment market. An interesting twist this year is that we have previously reported that men are far more likely to enter the recruitment market for career development reasons, whilst women are more likely to cite a better work life balance. This year, for the first time, a higher proportion of women changed job for career development reasons than men.

Q - What was your primary motivation for looking for another job?

5iiOverview

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Salary increases achieved without changing employerAccording to our survey, the average increase for internal auditors who stayed with their existing employer rose from 5.5% in 2015 to 5.7% in 2016. Given the low inflation environment, this represents a significant real increase in earnings. However, averages can be misleading as many of the internal auditors who stayed with their employer will have benefited from promotions.

As our comparatives demonstrate, the distribution of increases is similar to 2015. We were surprised last year that 18% of internal auditors reported they received no increase and are only mildly less surprised this has now fallen to 15%, a still seemingly high percentage. As we explained last year, the answer does not lie in the public sector as instances of zero salary increases occur across all sectors. The answer may well lie in those employers who recognise that where internal auditors do not have marketable skill sets, they do not have to offer salary increases to retain them. We can only speculate what that might do for an internal auditor’s motivation.

This year, yet again, the average increase in the consultancy sector was not only higher but significantly higher than any other sector. Retaining internal auditors that consultancies have frequently trained in-house against an ongoing onslaught of offers for them to leave is a significant challenge for the sector. Their response is not simply salary increases, but also accelerated promotions. In spite of reported high levels of contentment, at 3.9%, the average increase in commerce and industry has again lagged other sectors.

Q - Which option best describes your salary increase in the last year?

Salary increases achieved by changing employer The survey indicates that the average salary increase achieved by internal auditors changing job is 16.1%, which is an increase from the 15.1% achieved in 2015 and the highest for five years. However, looking back over the last four years, the overall average has been consistently in the 15% to 16% region.

There is a significant difference between the 16.1% increase in salary achieved by changing job and the 5.5% average achieved by staying with an existing employer. However, analysing the average, as we do every year, reveals a wide range of increases. It is particularly instructive that whilst 16.1% may be taken as the average, only 37% (up from 29% last year) of internal auditors actually accepted a salary increase between 10% and 20%. There are a wide range of considerations that go into the decision to accept a position and, whatever the resulting salary increase, the results of our survey indicates it is unlikely to be the average of 16.1%.

In terms of the salary increases secured by men and women, there is no material difference. Whilst managers fare marginally better than non-managers, unlike 2015 there is a significant difference between general and IT auditors. The average for general auditors is 15.3%, which rises to 18.1% for IT auditors.

Q - What best describes how your current salary compares with your previous salary?

June 2012

June 2013

June2014

June2015

June 2016

12.8% 15.7% 15.8% 15.1% 16.1%

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Interestingly, the number of internal auditors accepting positions for the same or lower salary has fallen from 24% in 2015 to 13% in 2016. This has certainly been a contributory factor in pushing the overall average up. Internal auditors may move for the same or less money when relocating away from London or moving between sectors. Equally, internal auditing is drawing in people with, for example change or project management experience or experience of other corporate governance disciplines, who have no direct experience of internal auditing but are looking to develop their career. Whilst until recently these people may have been prepared to accept the same or lower offers, after an extended period of economic growth and chronic candidate shortages, such instances are becoming less frequent.

However, there will also always be those who are prepared to accept a better work / life balance which consistently gets significant support as a key motivation for changing job. Some do not necessarily want a bigger job, but a better one that involves less pressure and possibly less exposure to what they perceive to be corporate politics. There are older internal auditors who appear keen to trade salary for a better work life balance. The attraction of part time work is frequently mentioned. Furthermore, whilst base salary is the most compelling element of any offer, there are also other benefits such as pensions, bonuses and holiday entitlement.

Salary v Remuneration Base salaries always catch the headlines. However, offers of employment invariably include other benefits. On average, these additional benefits tend to make up around 30% of total remuneration in internal auditing. Here is an overview of the other benefits that internal auditors might expect to receive.

BonusesThe incidence of internal auditors receiving bonuses is rising. 83% of internal auditors reported they had received a bonus in 2016 (up from 80% in 2015 and 76% in 2014). After falling last year, the average value of bonuses in 2016 rose from 16.6% in 2015 to 17.3%. 35% of internal auditors reported receiving a higher bonus and only 18% a lower one.

The average bonus, however, is not the typical bonus. 39% of internal auditors reported they received a bonus of less than 10% whilst only 30% received a bonus of over 20%. The most common bonus level received by 22% of internal auditors was between 5-10%. Higher bonuses are far more prevalent in banking and financial services than other sectors.

Bonuses are almost universally paid in banking and financial services and 86% of internal auditors working in commerce and industry reported receiving a bonus. Whilst they are becoming more common in the public sector, only 37% of public sector internal auditors report receiving a bonus. Although there has historically been no material difference between IT and general auditors and managers and non-managers, this year both general auditors and managers reported they were more likely to have received a bonus.

Bonuses, whilst potentially a good way of retaining and motivating staff, are almost invariably an inefficient way of attracting them. An issue with bonuses is that whilst an internal auditor entering the recruitment market who has benefited from a bonus may add it to their base salary, they are more inclined to discount bonuses when discussing expected salary. This goes some way to explaining what can otherwise be relatively high increases in the base salaries achieved by internal auditors moving between employers.

Bonuses are usually non-contractual, often discretionary and may be paid on the basis of corporate or personal performance or a combination of the two. There is often a qualifying period.

Bonuses vary considerably and often a typical offer made to an internal auditor will contain a non-contractual offer of a bonus. Given the difficulties that it tends to engender, bonuses are now more likely to begin accruing from the time that employment starts rather than accruing from the start of an annual qualifying period.

Pensions Given that work-place pensions have now become mandatory, there is really little point in asking internal auditors if they are entitled to an employer pension contribution. In 2016 we have therefore asked if their employer paid above the statutory minimum. 82% reported they did, ranging from 90% in banking and financial services down to 53% in consultancy. The average pension contribution made by employers rose to 9.6% in 2016, up from 8.9% in 2015. The public sector had the highest level of contributions at 13.7% and, in the private sector, the banking and financial services sector leads the way. The typical employer contribution, enjoyed by 44% of respondents to our survey, is between 5-10%.

For new recruits, final salary pensions no longer exist in the private sector. Those who still benefit from these appreciate they are valuable and the cost of giving them up to join a new employer can be prohibitively expensive. Pension schemes in the private sector are invariably money purchase where the employer commits to making a contribution based on a percentage of salary.

Whilst there can be a short qualifying period before contributions commence, work-place pension legislation requires all companies to enrol an employee in a pension scheme within three months of employment commencing. For those who elect to stay enrolled, minimum employer and employee pension contributions based on an employee’s salary are now mandatory. Most companies pay above these minimums based on a fixed percentage of an employee’s base salary. The employee may or may not be required then to match it. Frequently, employers will be prepared to match additional contributions made by the employee up to a fixed percentage. The percentage may increase with the age of the employee, their length of service and management status.

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Other benefitsCars or car allowances have become a less common benefit, although they can still be expected where a role requires significant travel and also for senior hires. In terms of overall remuneration, a car allowance is frequently offered in lieu of a car and is generally considered as non-pensionable salary. Travel or housing allowances can be paid, but are not usually a standard part of a remuneration package. The most valuable other benefit is Critical Illness Cover, which is expensive to provide and is usually restricted to senior roles. However, Private Health Insurance is common and is often extended to all immediate family members.

Life Assurance, usually linked to a pension scheme, is usual, as is payment of at least one professional subscription. Other benefits may include season ticket loans, gym membership, subsidised dental care, personal and accident insurance and staff discounts. These are generally low value benefits.

81% of internal auditors report that they receive other benefits with an average value of £4,300, which is little changed from £4,340 in 2015. There are no significant differences within the private sector, but, at £2,670, the value of other benefits is significantly lower in the public sector. At £4,950, managers also have significantly higher benefits than the £3,130 enjoyed by non-managers.

Holiday entitlement The most common number of days’ holiday, enjoyed by 39% of internal auditors, is 25 days, with 55% of internal auditors reporting they receive between 24-27 days holiday. The average in the survey was 26 days, (down from 27 days in 2015). Whilst the average number of days’ holiday in banking and finance is 26 days, and 25 days in commerce and industry and consultancy, it rises to 28 days in the public sector, where 62% of internal auditors have over 28 days and 31% over 30 days. Holiday entitlement, regardless of sector, is more likely to be enhanced by the number of years worked rather than seniority. As a strategy, it represents a good way of rewarding loyalty and retaining staff but a poor way of attracting new employees.

An increasingly popular benefit is to provide employees with the opportunity to buy additional holidays. This is usually limited to an additional 5 days, purchased through salary sacrifice.

Flexible working Flexible working is the opportunity to vary your hours of work or to work from home and is a popular benefit. This year, 68% of internal auditors reported that they benefited from flexible working, up from 62% in 2015. The level of flexible working between banking and financial services, consultancy and the public sector is consistent, at approximately 75%. However, within commerce and industry it falls to a low of 58%. At 74%, women are more likely to benefit from flexible working than the 66% of men who do so. There is little difference between managers and non-managers.

67% of internal auditors would like the opportunity to work more flexibly and, when asked what they would most like to change about their job, 20% reported the option to work more flexibly.

Offers of employment in the private sector will list core hours and an employment base which is usually not formally negotiable. However, in internal auditing, more employers are prepared to be flexible once employment has started. An interesting development in 2016 is that historically there was a material difference in flexible working between internal auditors who had changed job in the last year and those who had not. In 2015, only 54% of internal auditors who had changed job benefited from flexible working against 65% who did not. In 2016, there was no difference, implying that employers are more prepared to offer flexible working either immediately or soon after an internal auditor has started work.

Clearly, the opportunity to work flexibly is important to internal auditors and those employers who wish to both recruit and retain them should be prepared to recognise this. As a result, many employers are ultimately more concerned with output rather than simply office attendance during preset hours.

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The composition of the sample ranged across all areas of general and IT audit. Here are some key statistics:

Sample

p Majority of respondents are general auditorsp virtually identical to 2015 (78% v 22%)

p Percentage of women working in internal auditing is steadily increasing - 22% in 2014, 27% in 2016

p Percentage of women working in IT audit remains proportionately lower at only 16%

p Women slightly less well represented in consultancy but no real difference between other sectors

p Little change between 2015 and 2016p 24% of women are managers, slightly below their

overall representation in internal auditing, which is 27%

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Sector analysis – management responsibility

p The UK internal audit recruitment market remains London centric

p Jobs in banking and financial services disproportionately represented in London, in spite of some banks looking to re-locate internal audit departments to the regions

5iiiGeneral Results

Q - How long have you worked in auditing?

Q - Are you currently working?

General findings

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Slight increase in people with less than 2 years’ experience

Rise in percentage not working

p Average time in auditing 10.9 years v 10.6 years in 2015

p Public sector highest level of experience at 11.7 years and consultancy lowest at 9.2 years

p Men 11.3 years v women 9.8 yearsp 12% of women have worked in auditing for less than

2 years against only 6% of menp No material difference between general and IT

auditors or between London and rest of UK

p Percentage of internal auditors not working has risenp 65% of internal auditors not working are finding it

more difficult to find a new job than anticipated and only 7% easier

p 61% have been looking for over 3 months

Q - Have you changed employer in the last 12 months?

Recruitment activity

Fewer internal auditors report changing job

p Recruitment activity marginally down on 2015 following larger fall on 2014

p IT auditors (20%) far less likely to change job than general auditors (31%), a significant change on 2015 (29% and 33%)

p Auditors outside of London (32%) are more likely to have changed jobs than those in London (25%)

p Non-managers (38%) are more likely to have changed job than managers (23%)

p Women (26%) marginally less likely to have changed job than men (29%)

p Surprising rise in the increase of internal auditors in commerce and industry moving (30% to 41%) versus a fall in banking and fnancial services (35% to 23%)

Sector analysis 2016

Q - What was your primary motivation in looking for another job?

p Job security, having remained at the same level in 2014 and 2015, has risen to 12% in 2016

p Salary has become more important and work / life balance less important

Job security rising in importance

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Sub-group Salary Work / Life Balance

Career Development

Job Security

General Audit 17% 55% 17% 11%IT Audit 15% 46% 24% 15%Men 19% 52% 19% 10%Women 11% 58% 16% 15%Banking & Financial Services 20% 60% 10% 10%Commerce & Industry 18% 43% 21% 18%Consultancy 16% 80% 4% 0%Public Sector 2% 41% 57% 0%Overall average 17% 18% 53% 12%

Q - If you were to look for another job or go for an interview what would be the most likely reason?

p Potential reasons to look for another job remain broadly similar between 2015 and 2016 although slight tradeoff between career development and work / life balance

p Career development remains the key reason, particularly in commerce and industry, with job security relatively low

Sub-group Salary Work / Life Balance

Career Development

Job Security

General Audit 34% 18% 45% 3%IT Audit 35% 16% 43% 6%Men 35% 17% 43% 5%Women 32% 20% 46% 2%Banking & Financial Services 38% 13% 47% 2%Commerce & Industry 20% 22% 52% 6%Consultancy 37% 26% 33% 4%Public Sector 35% 22% 35% 8%Overall average 34% 18% 44% 4%

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Q - Which band best describes your base salary?

Q - Which option best describes your salary increase in the last year?

Salaries

Average base salary in survey £79,800

Average salary increase for non-movers up slightly to 5.7%

Sub-group Average Salary

General Audit £73,500IT Audit £80,350London £81,400Rest of UK £66,700Banking & Financial Services £83,800Commerce & Industry £72,900Consultancy £66,700Public Sector £65,400Overall average £79,800

Sub-group Salary Increase 2015

Salary Increase 2016

Banking & Financial Services

6.5% 6.7%

Commerce & Industry 3.8% 3.9%Consultancy 7.9% 9.2%Public Sector 4% 4.1%Overall average 5.5% 5.7%

p Average salary increase up from 5.5% to 5.7% in 2016 p Consultancy again has the highest increase at 9.2%,

up from 7.9% in 2015

Q - Which best describes how your current salary compares to your salary in your previous role?

Average salary increase for job movers up to 16.1%

Sub-group Salary Increase 2015

Salary Increase 2016

Banking & Financial Services

19.6% 15.8%

Commerce & Industry 15.1% 16.1%Consultancy 9.8% 16.2%Public Sector 9.5% 12.3%Overall average 15.1% 16.1%

p Average increase achieved by internal auditors changing job was 16.1%, up from 15.1% in 2015

p Increase in consultancy now greater than all other sectors

p Only 13% moved job for the same or less in 2016, sharply down from 24% in 2015

p In 2016, average increase for IT auditors (18.1%) significantly more than for general auditors (15.3%)

p No material difference between men and women

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Q - Overall do you believe you are adequately compensated?

Further increase in satisfaction with remuneration

Sub-group Satisfied with renumeration

2015

Satisfied with renumeration

2016

General Audit 63% 59%IT Audit 63% 68%Men 64% 68%Women 61% 59%Managers 66% 65%Non-managers 58% 66%London 62% 63%Rest of UK 64% 70%Changed employer (12 months) 73% 81%Not changed employer 59% 60%Earning >£100k 79% 73%Earning £50-100k 68% 67%Earning <£50k 43% 56%Banking & Financial Services

68% 63%

Commerce & Industry 66% 79%Consultancy 60% 37%Public Sector 58% 76%Overall average 63% 66%

p Continued increase in satisfaction with remuneration – 66% in 2016 up from 58% in 2014

p Men (68%) more likely to believe they are adequately compensated than women (59%)

p IT auditors (68%) more content than general auditors (59%)

p High level of satisfaction in commerce and industry (79%)

p Bonuses becoming almost universal

Q - Does your employer pay a bonus?

BonusesFurther increase in number of employers paying bonuses

Sub-group Paid Bonus 2015

Paid Bonus 2016

General Audit 80% 84%IT Audit 81% 78%Managers 81% 85%Non-managers 79% 78%Large companies 86% 87%Medium sized companies 72% 68%Small companies 68% 84%Banking & Financial Services

94% 96%

Commerce & Industry 86% 86%Consultancy 69% 69%Public Sector 36% 37%Overall average 80% 83%

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Q - Which of these as a percentage of your salary best describes your last bonus?

Increase in level of bonuses

Sub-group % Bonus 2015 % Bonus 2016

Banking & Financial Services

19.2% 19.4%

Commerce & Industry 17.4% 17.5%Consultancy 11.7% 11.6%Public Sector 10.3% 9.8%Overall average 16.6% 17.3%

p Increase in level of bonuses – 17.3% in 2016 up from 16.6% in 2015

p Most common bonus level was 5-10%, received by 22% of respondents (23% in 2015)

p Bonuses remain highest in banking and financial services (19.4%)

Q - Does your employer provide you with any pension benefits above the statutory minimum?

Pensions

Additional pension benefits almost universal

Sub-group Pension Benefits

Managers 84%Non-managers 78%Large companies 79%Medium sized companies 88%Small companies 83%Banking & Financial Services 90%Commerce & Industry 81%Consultancy 53%Public Sector 83%Overall average 82%

Q - What contribution to your pension as a percentage of your salary does your employer make?

Average contribution up to 9.6%

Sub-group Contribution

Managers 9.9%Non-managers 9.1%Large companies 9.4%Medium sized companies 10.3%Small companies 9.3%Banking & Financial Services 10.2%Commerce & Industry 7.7%Consultancy 6.9%Public Sector 13.7%Overall average 9.6%

p Only 53% of internal auditors in consultancy recieve additional pension benefits versus 90% in banking and financial services

p Average pension contribution in 2016 was 9.6%, up from 8.9% in 2015

p Typical pension contribution in 2016 was 5-10%, received by 44% (40% in 2015)

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Q - What is the approximate monetary value of any other benefits such as health, travel or car allowances?

Q - What is your holiday entitlement?

Other benefits

Quality of life

Average value of other benefits almost identical to 2015

Slight drop in holiday entitlement

Sub-group value of Benefits

Managers £4,950Non-managers £3,130Large companies £4,300Medium sized companies £4,350Small companies £4,150Banking & Financial Services £4,650Commerce & Industry £4,410Consultancy £4,140Public Sector £2,670Overall average £4,300

Sub-group Holiday

Banking & Financial Services 26 daysCommerce & Industry 25 daysConsultancy 25 daysPublic Sector 28 daysOverall average 26 days

p Average value of other benefits £4,300 in 2016, versus £4,340 in 2015

p Average holiday entitlement has fallen from 27 days in 2015 to 26 days in 2016

p Most common holiday entitlement is 25 days (39%)p 56% of internal auditors have between 24

and 27 days p Number of days’ holiday rises with both seniority

and experience - for those with over 10 years’ experience, the average is 28 days

p Holiday entitlement greatest in the public sector

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Q - Does your employer provide you with the opportunity to work flexibly to any significant level?

Continued increase in flexible working

p Flexible working up on 2015 although rather less common in commerce and industry

p Women more likely to work flexibly than menp No difference between managers and non-managersp Changing job does not appear to change the

incidence of flexible working

Sub-group Flexible Working

Men 66%Women 74%Managers 69%Non-managers 68%Large companies 69%Medium sized companies 67%Small companies 71%Changed employer (12 months) 68%Not changed employer 69%Banking & Financial Services 72%Commerce & Industry 58%Consultancy 75%Public Sector 76%Overall average 68%

Q - Would you like the opportunity to work more flexibly?

Clear desire for even more flexible working

p Desire particularly strong from women and those working in IT audit

Sub-group Desire to Work Flexibly

General Audit 63%IT Audit 79%Men 64%Women 77%Managers 70%Non-managers 62%Overall average 67%

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Q - What would you most like to change about your job?

Work / life balance a key issue

Q - Do you feel your skills have become more or less valuable?

General consensus that value of skills is increasing

p Feeling about value of skills strongest in consultancy and weakest in the public sector

Sub-group More Same Less

General Audit 58% 33% 9%IT Audit 71% 19% 10%Banking & Financial Services

62% 31% 7%

Commerce & Industry 62% 26% 12%Consultancy 66% 22% 12%Public Sector 52% 41% 7%Overall average 61% 30% 9%

Sub-group Salary Work / Life Balance

Job Content Career Development

Job Security My Manager Recognition

General Audit 27% 18% 8% 30% 4% 7% 6%IT Audit 31% 24% 0% 23% 8% 9% 5%Men 28% 18% 6% 29% 6% 6% 7%Women 29% 22% 7% 24% 3% 12% 3%Banking & Financial Services 33% 16% 4% 30% 5% 6% 6%Commerce & Industry 17% 20% 7% 31% 8% 10% 7%Consultancy 34% 35% 6% 22% 0% 0% 3%Public Sector 28% 17% 7% 21% 3% 17% 7%Overall average 28% 20% 6% 28% 5% 7% 6%

p Although career development and salary come top, work / life balance is not far behind and is clearly an issue in consultancy

p Surprising consistency across most sectorsp Greater dissatisfaction with direct manager in the public sector than any other sector

p No difference betweeen general and IT auditorsp Changing jobs brings a significant increase

in confidence

Q - Do you feel more or less secure than a year ago?

How people are feeling

23% report feeling less secure

Sub-group More Same Less

General Audit 29% 49% 23%IT Audit 29% 49% 23%Changed employer (12 months) 45% 36% 19%Not changed employer 21% 25% 54%Banking & Financial Services

29% 51% 20%

Commerce & Industry 31% 42% 27%Consultancy 25% 53% 22%Public Sector 21% 51% 28%Overall average 28% 49% 23%

Q - Do you think the market for your skills is improving or deteriorating?

Q - Do you believe you are adequately compensated? Q - Are you satisfied with your current contract?

Q - When considering a new contract, what is the most important consideration?

Contractors in work

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Q - Do you feel more or less secure than a year ago? Q - Do you think the market for your skills is improving or deteriorating?

Contractors looking for work

BIG 4 GENERAL AUDIT LONDON

IT AUDIT LONDON

GENERAL AUDIT REGIONAL

IT AUDIT REGIONAL

Associate (1-3 yrs exp) £30 – 40,000 £30 – 50,000 £28 – 35,000 £26 – 38,000

Senior Associate (3-5 yrs exp) £44 – 52,000 £45 – 60,000 £38 – 46,000 £34 – 43,000

Manager (5-7 yrs exp) £52 – 65,000 £60 – 75,000 £50 – 58,000 £45 – 60,000

Experienced Manager (7-10yrs exp) £54 – 65,000 £65 – 85,000 £50 – 62,000 £55 – 70,000

Senior Manager (8-12 yrs exp) £75 – 110,000 £80 – 120,000 £65 – 75,000 £70 – 90,000

Director (12 yrs exp) £100,000+ £100,000+ £75,000+ £85,000+

Barclay Simpson analyses the salary data that accumulates from the placements we make in the UK. This provides a guide to salaries for internal audit professionals.

The salary ranges quoted are for good rather than exceptional individuals and take no account of other benefits in addition to salary, such as bonuses, profit sharing arrangements and pension benefits.

MID-TIER GENERAL AUDIT LONDON

IT AUDIT LONDON

GENERAL AUDIT REGIONAL

IT AUDIT REGIONAL

Consultant (1-3 yrs exp) £28 – 42,000 £28 – 42,000 £26 – 35,000 £24 – 34,000

Senior Consultant (3-5 yrs exp) £40 – 48,000 £40 – 55,000 £35 – 43,000 £35 – 43,000

Manager (5-7 yrs exp) £46 – 56,000 £55 – 65,000 £42 – 52,000 £42 – 52,000

Experienced Manager (7-10 yrs exp) £50 – 62,000 £60 – 75,000 £48 – 55,000 £50 – 63,000

Senior Manager (8-12 yrs exp) £65 – 85,000 £72 – 90,000 £60 – 75,000 £63 – 80,000

Director (12 yrs exp) £85,000+ £90,000+ £75,000+ £80,000+

5ivSalary Guide

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COMMERCE AND INDUSTRY GENERAL AUDIT LONDON

IT AUDIT LONDON

GENERAL AUDIT REGIONAL

IT AUDIT REGIONAL

Auditor (1-3 yrs exp) £32 – 48,000 £28 – 42,000 £32 – 42,000 £32 – 45,000

Senior Auditor (3-5 yrs exp) £45 – 60,000 £38 – 60,000 £38 – 48,000 £38 – 50,000

Lead Internal Auditor / Assistant Manager (5-7 yrs exp)

£52 – 68,000 £55 – 70,000 £45 – 55,000 £48 – 60,000

Experienced Manager (7-10 yrs exp) £65 – 80,000 £65 – 80,000 £50 – 65,000 £52 – 70,000

Senior Manager (8-12 yrs exp) £75 – 90,000 £75 – 100,000 £60 – 80,000 £65 – 85,000

Divisional Head (12 yrs exp) £85 – 110,000 £95,000+ £80 – 100,000 £90 – £110,00

Group Head / Director (12 yrs exp) £120,000+ £100,000+

BANKING - IT AUDIT AND REGIONAL IT AUDIT LONDON

GENERAL AUDIT REGIONAL

IT AUDIT REGIONAL

Auditor (2-4 yrs exp) £42 – 56,000 £28 – 35,000 £32 – 47,000

Senior Auditor (3-6 yrs exp) £50 – 73,000 £35 – 48,000 £39 – 50,000

Lead Internal Auditor / Assistant Manager (5-7 yrs exp) £66 – 85,000 £40 – 52,000 £47 – 60,000

Experienced Manager (7-10 yrs exp) £80 – 105,000 £50 – 60,000 £57 – 70,000

Senior Manager (8-12 yrs exp) £90 – 120,000 £60 – 75,000 £65 – 90,000

Director (12 yrs exp) £110,000+ £75,000+ £80,000+

INVESTMENT BANKING GENERAL AUDIT LONDON

Analyst £40 – 50,000

Associate £50 – 80,000

Assistant vice President £65 – 85,000

vice President £80 – 100,000

Director / Senior vice President £100 – 130,000

Executive Director £110 – 150,000

Managing Director £150,000+

RETAIL BANKING GENERAL AUDIT LONDON

Auditor £30 – 40,000

Senior Auditor £40 – 55,000

Audit Manager £55 – 70,000

Senior Audit Manager £70 – 100,000

Head of Audit £100 – 140,000

Director £120,000+

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ASSET MANAGEMENT GENERAL AUDIT LONDON

Senior Auditor £40 – 65,000

Audit Manager £65 – 100,000

Director £90 – 150,000

Managing Director / Head of Audit £100 – 250,000

INSURANCE - LLOYDS MARKET GENERAL AUDIT LONDON

Senior Auditor £50 – 60,000

Audit Manager £60 – 90,000

Managing Director / Head of Audit £90 – £175,000

SMALL INSURANCE - LIFE AND NON-LIFE GENERAL AUDIT LONDON

GENERAL AUDIT REGIONAL

Senior Auditor £50 – 55,000 £32 – 45,000

Audit Manager £60 – 70,000 £48 – 55,000

Senior Manager £80 – 90,000 £60 – 70,000

Head of Audit £90 –130,000 £65 – 90,000

LARGE INSURANCE - LIFE AND NON-LIFE GENERAL AUDIT LONDON

GENERAL AUDIT REGIONAL

Senior Auditor £50 – 55,000 £35 – 45,000

Audit Manager £60 – 70,000 £50 – 60,000

Senior Manager £80 – 100,000 £65 – 85,000

Head of Audit £140,000+ £90,000+

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Barclay Simpson is an international corporate governance recruitment consultancy specialising in internal audit, risk, compliance, security, business continuity, legal and treasury appointments. Established in 1989, Barclay Simpson works with clients in all sectors throughout the UK, Europe, Middle East, North America and Asia-Pacific from our offices in London, New York, Dubai, Hong Kong and Singapore.

We add value by using our unique focus on corporate governance, our highly experienced specialist consultants and access to both the local and international pools of corporate governance talent. Our strength lies in our ability to understand client and candidate needs and then to use this insight to ensure our candidates are introduced to positions they want and our clients to the candidates they wish to recruit.

For more in-depth coverage, comprehensive reports and compensation guides exist for the Internal Audit, Risk, Compliance, Security and Legal recruitment markets. These can be accessed from the links below.

We also produce other specialist reports, each of which can be accessed for free on our website: www.barclaysimpson.com

www.barclaysimpson.com/mid2016markettrends/auditwww.barclaysimpson.com/mid2016markettrends/riskwww.barclaysimpson.com/mid2016markettrends/compliancewww.barclaysimpson.com/mid2016markettrends/securitywww.barclaysimpson.com/mid2016markettrends/legal

ABOUT BARCLAY SIMPSON6Barclay SimpsonBridewell Gate, 9 Bridewell PlaceLondon EC4V 6AWTel: 44 (0)20 7936 2601Email: bs@barclaysimpson.com

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If you would like to discuss any aspect of the reports please contact the following divisional heads:

Corporate Governance Adrian Simpson as@barclaysimpson.comInternal and IT Audit Tim Sandwell ts@barclaysimpson.comRisk Dean Spencer ds@barclaysimpson.comCompliance Tom Boulderstone tgb@barclaysimpson.comSecurity Mark Ampleford ma@barclaysimpson.comLegal Jane Fry jf@barclaysimpson.com

To discuss our international services please contact:Europe Tim Sandwell ts@barclaysimpson.comMiddle East Chris L’Amie cla@barclaysimpson.comAsia Pacific Russell Bunker rb@barclaysimpson.comNorth America Daniel Close dc@barclaysimpson.com