HR Survey on the Luxembourg Private Banking sector.

1. Private Banking Survey Luxembourg
Luxembourg’s private banking sector is undergoing some fundamental From September 2007 throughout September 2008, our teams
changes and is repositioning itself to address its future. The stakes, have interviewed 429 private banking professionals. This represents
the objectives and the projects are important for this sector and for approximately one third of Luxembourg’s current total (front-office)
Luxembourg. A number of initiatives have been taken, workgroups have private banking population. For each of these target individuals, we
been created, but many issues remain unsettled. Many banks order have surveyed personal, financial and economic data. We believe it to
studies as they question and think about their future. They observe the be useful to structure, summarize and communicate the results in order
emergence of new business models and new services which stimulate to provide Luxembourg’s private banking actors an additional analysis
all the players of this sector to reconsider their operating mode as well viewpoint.
as their strategic positioning. We start the presentation of our study’s results by introducing a
Our search firm is confronted daily with the recruitment issues, retention brief definition of the different job functions followed by three groups
problems and competition between the local market players. Through of statistical elements on the surveyed private banking population;
this synthetic survey, we want to bring additional objectivity and analysis socio-professional data, salary levels and economic data.
to this vast reflection and specifically in the area we know best: Talent. We conclude by synthesizing the participants’ (candidates’ and hiring
This aspect is vital for Luxembourg’s private banking development, but managers’) expectations.
sometimes underestimated or poorly handled through lack of tangible
elements.
November 2008

2. Definition of job functions
Job titles, functions and responsibilities vary according to the cultural environment and the internal organization of the private banking
institutions. For clarity and simplicity reasons, we have summarized all the variations by regrouping them into 7 major job families :
Hunter: wins new business by developing/acquiring a client prospect Desk manager: leads a team on one or more geographic markets
base on one or more specific markets without managing a client portfolio. and manages a portfolio of key accounts.
Relationship manager: manages a portfolio of wealthy clients and Portfolio manager: is in charge of the asset allocation and monitors
advises on financial and patrimonial matters (excluding asset manage- the clients’ portfolios following their desired investment strategies.
ment) without acquiring a new client base.
Estate Planner: in charge of the clients’ legal, tax and patrimonial
Private banker: manages and develops/acquires a portfolio of wealthy matters.
clients and advises on financial and patrimonial matters (excluding asset
management).
Independent Wealth Manager: officer working in an independent
wealth management company, in charge of the full cycle (including asset
management) and developing/acquiring a portfolio of wealthy clients.
Distribution by gender Age and experience
Sources : Edouard Franklin Sources : Edouard Franklin
Three quarters of the local private banking community are men, one quarter are The surveyed population holds an average 8,8 years of work experience in private
women. The female population makes up 20 % in French-speaking environments and banking and 12,8 years of total work experience.
is more widely represented in German-speaking institutions (35 %). The average age is currently 36,4 years.
Distribution by nationality
Distribution by job function
Sources : Edouard Franklin Sources : Edouard Franklin
89% of the polled individuals are front-office representatives while 11% are in the Luxembourg’s private banking professionals are predominantly Belgian, French and
middle-office. We noted that half of the front-office employees are Relationship German (72 %); this distribution is justified by the historical market structure for
Managers and that only 33% of the total front-office workforce has business Luxembourg’s private banking; Benelux, France and Germany. We observe that the
development responsibilities (Hunters, Private Bankers and Independent Wealth number of officers originating from emerging countries (Eastern countries, Middle
Managers). East, South America and Asia) is very low while these geographical zones represent
strategic development areas for the Luxembourg financial center.

3. salary levels economic Data
Excluding any fringe benefits Average portfolios and number of clients (M€)
Function Average fixed Average Average % variable/ Average total Average number Average client
salary variable total total portfolio (M€) of clients portfolio (M€)
remuneration remuneration remuneration
Hunter 104,800 € 17,500 € 122,300 € 14,31% Desk manager 76 42 1,81
Relationship 75,412 € 10,747 € 86,159 € 12,47% Relationship
Manager manager 112 165 0,68
Private 89,129 € 11,800 € 100,929 € 11,69% Private
banker banker 127 121 1,05
Portfolio 91,980 € 21,241 € 113,221 € 18,76% independent
Manager Wealth Manager 160 117 1,37
independent 99,500 € 117,500 € 217,000 € 54,15%
Wealth Manager
Desk 121,531 € 48,281 € 169,812 € 28,43%
Manager
One notes a tendency of the banks to direct themselves towards an increasingly The portfolios’ volume, the volume of the managed clients and the average assets
measurable and objective-oriented variable remuneration and towards a limitation volume are consistent with the previous data elements linked to remuneration,
of the discretionary dimension. Nevertheless, it is also to note that the share respecting the level of experience for the different job functions within of the
of the variable represents, for the three traditional front-office functions, still a market place.
pretty marginal part of the total package. The drift towards performance based This data was compiled from September 2007 through September 2008.
compensation is increasing, notably in specialized environments, but still remains
a minority situation.
canDiDates’ exPectations
Desire to join a more emphasized cultural environment with A greater flexibility in the service offering; open architecture,
• •
a strong brand identity that is recognized by their customers, multiple booking centers, dual solutions private/corporate to
coupled with a top level, original and specialized investment comply with the expectations of more demanding and wealthier
strategy. customers.
For the more senior candidates; to have their function adapted Even if remuneration doesn’t show up as the first element
• •
to a more commercial role, desire to work differently; less of motivation, expectations are on more attractive variable
administration and compliance, more independence and remuneration schemes, directly linked with the assets
diversity, more involvement in the allocation of assets. net-inflows or with the performance of their portfolios.
HiRing ManageRs’ exPectations
To attract talent coming from emerging markets; Asia, Beyond the traditional hunter’s profile, there is a will to recruit
• •
Middle East, Latin America, Mediterranean countries, Eastern more senior candidates with a more complete skill set, able
countries. Strategic will to develop these markets. to autonomously work on financial advisory, tax and estate
planning. The demand is oriented towards increasing levels of
To recruit candidates from the local Luxembourg market, whose
•
required sales and technical skills.
standard profile is to quickly bring assets, alone or in a team.
As an Executive Search firm we are less solicited to recruit
private bankers outside the country, in their home market and
who would relocate to Luxembourg.

4. EDOUARD FRANKLIN is a specialist Executive Search firm helping renowned institutions to identify, assess and recruit
the industries’ most talented professionals and leaders. We execute retained search assignments through our offices in
Luxembourg and Paris.
Our expert practice areas include: Banking Officers and Financial Officers.
The Banking Officer practice works closely with private banks, The Financial Officer practice helps clients from various
investment and wealth advisory firms as well as family offices industry sectors recruit executives with leadership skills as
to identify and recruit executives in senior-level positions well as outstanding financial credentials. We recruit qualified
such as: finance professionals for positions that include:
• Director of Wealth Management / Private Banking • Chief Financial Officers
• Desk Manager • Finance Directors
• Senior Private Banker / Wealth Manager • Senior Financial Controllers
• Senior Relationship Manager • Head of Accounting
• Portfolio Manager / Asset Manager • Internal Audit Manager
• Estate Planner • Consolidation Manager
• Risk & Compliance Manager • Treasury Manager
• Senior Legal Officer / Advisor • Tax Manager
• Head of Legal / Company Secretary
• Financial Controller
Our current team of 8 consultants, operating from our offices in Luxembourg and Paris, possess a great blend of professional
and industry expertise, working in teams, often across international boundaries that maximize sector specialization and
knowledge-sharing.
www.edouardfranklin.com
Pascal MeieR
Managing Partner
Head of Banking Practice
pascal.meier@edouardfranklin.com
LuxeMbouRg
17, rue Sigismond
gino Micucci 2537 Luxembourg
Managing Consultant
Tel : +352/24.61.62
Country Manager - Luxembourg
PaRis
gino.micucci@edouardfranklin.com
20, rue Cambon
75001 Paris
Tel : +33/1.44.50.40.40
Copyright Edouard Franklin 11/2008