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Insolvency and restructuring sees most pay rises in accounting says Marks Sattin

Insolvency and restructuring sees most pay rises in accounting says Marks Sattin

- 75% of accountants specialising in insolvency and restructuring saw their salaries rise last year – higher than any other industry sector

Insolvency and restructuring professionals received the most salary rises in the accounting industry last year.

According to research by accountancy and finance recruiter Marks Sattin, three quarters of accountants specialising in insolvency and restructuring work saw their pay rise over the last year – more than transactional specialists and financial analysts of whom 73% and 70% received rises respectively.

Shaila Verma, executive consultant of the restructuring and insolvency division at Marks Sattin said: “A tough year for UK businesses has put a premium on the value of accountants with experience in dealing with insolvency and restructuring. The ability of administrators to effectively manage failing companies’ debts is currently essential in the push to minimise corporate risks and to streamline operations to ensure profitability in hugely challenging markets.

“The popularity of accountants with these skills is also a symptom of the ongoing uncertainty of the economic outlook. In practice, employers are pushing to ensure they have the best possible talent available to take on a high workload if the recession deepens as a result of the fall out from what looks certain to be a hard landing for the eurozone and its peripheral economies. This means there’s strong competition for those with a solid track record in insolvency and restructuring work, which has pushed up both salaries and bonuses”.

Annual salary bumps for accountants with insolvency experience are rising by as much as 17.5%. The highest level of competition is for those with greater experience, meaning senior managers and directors are seeing the biggest increases. Bonuses in the sector have reached an average of 15%, pushing the average insolvency and restructuring salary to more than &pound63,100. This trend is especially common in boutiques which are generating the highest pay rises and bonus payouts. Employers are overwhelmingly backing qualified accountants to do their insolvency and restructuring work, with 97% of insolvency positions advertised seeking a qualified accountant for the role.

Shaila Verma continues: “Salaries and bonuses for insolvency practitioners are on the rise and this is set to continue into the end of 2012. The average bonus level of 15% last year was healthy, but the level of competition for those with expertise in this area means it’s very likely the 2012 bonus will be higher, meaning there’s currently huge scope for anyone with the right skills to significantly boost their earnings.

“It’s also significant that the vast majority of employers are looking for qualified accountants when looking to hire insolvency specialists. The skills of accountants in forensically assessing corporate assets and finding comprehensive solutions to companies’ financial struggles are highly prized and this means those with the necessary qualifications are currently in a great position.

“Many accounting firms are responding to the boom in insolvency work by moving people from audit work into insolvency. As the year goes on and economic uncertainty prevails, we would expect this trend to continue and expand. For those prepared to be flexible, the rewards are potentially huge”.

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