Lehman
Brothers and Merrill Lynch to Glut IT Job Market
Janco has confirmed that there will
be over 400 high paid IT executives that will out of work by the end of
this year
Park City, UT
– In interviews with highly placed sources within
Lehman Brothers' and Merrill Lynch, Janco has confirmed that a large
number of IT professionals in both organizations will lose their jobs
before the end of the year.
By Janco's estimates there are over 230 IT
professionals at Lehman Brothers' who make $250,000 or more a year. Many
of those jobs will go away. Add to that the 180 plus IT professionals at
Merrill Lynch making over $250,000 a year and there will be a glut of
top IT professionals that will be on the street by the end of the year.
The CEO of Janco, Victor Janulaitis said, "High paying
jobs within the IT function are targeted first when companies go
bankrupt or are acquired. High paying middle layer jobs are viewed as
sources of immediate cost savings."
In Janco's June 2008 IT Salary Survey found the IT
compensation was up slightly for most positions in the Information
Technology function. Victor Janulaitis said, "Hiring was up across the
nation as companies begin to focus on business expansion with an
cautious eye towards the economy. However with the recent events that
outlook has changed drastically."
The summary findings in Janco 2008 IT Salary Survey
were:
The mean compensation (which includes bonuses)
for all executive IT positions surveyed now is $143,847 in large
enterprises and $128,730 in mid-sized enterprises. (Large
enterprises have over $500 million in revenue and mid-sized have are
$100 to $499 million in revenue).
Hiring demand has increased for executives
(especially in mid-sized enterprises). In the last twelve (12)
months the greatest increases in compensation were at the executive
levels of large enterprises.
CSOs (Chief Security Officers) executives are in
high demand in large as well as line IT executive management in
enterprises of all sizes.
The mean compensation for Chief Information
Officers (CIOs) in mid-size enterprises has decreased with a
significant increase in demand. This typically means that
enterprises feel their existing CIO are not worth what they are
being paid and they are willing to hire new CIOs at significantly
higher levels of compensation that will be worth the additional
cost.
The positions in the highest demand are at the
executive levels of mid-size enterprises with the focus continuing
to be line operations and mandated security requirements such as
Sarbanes-Oxley, HIPAA and PCI.
Mid-sized enterprises are searching for Network
Control Analysts, Systems Programmers, Production Control Analysts,
Change Control Analysts, and Web Analysts.
In mid-sized enterprises the mean total
compensation has moved risen slightly from $75,076 to $75,362. At
the same time in large enterprises the median compensation has also
moved up from $80,078 to $81,631.
Baby boomers’ are now starting to retire.
The new target top compensation CIOs now is over
$2,000,000 a year (data source SEC filings of public corporations)
continues to increase.
A free summary of the IT salary survey
can be found on the Janco web site
http://www.e-janco.com.
IT Median Salaries June 2007 vs June 2008
June '07 Mean
June '08 Mean
Total
Base
Total
Base
Total
Change
Executives
$127,620
$143,106
$128,491
$144,645
1.08%
Middle Managers
$75,143
$78,845
$76,073
$79,777
1.18%
Staff
$63,146
$66,517
$63,186
$66,433
-0.13%
Large Enterprise
$76,518
$81,532
$77,063
$82,108
0.71%
Executives
$116,838
$131,321
$116,666
$131,793
0.36%
Middle Managers
$71,009
$74,645
$70,949
$74,701
0.08%
Staff
$58,352
$60,442
$58,647
$60,736
0.49%
Mid-Size Enterprises
$71,284
$75,601
$71,361
$75,810
0.28%
IT Averages All
$73,901
$78,567
$74,212
$78,959
0.50%
The positions that
have the greatest change in demand are listed below. The positions that show an
increased demand tend to have significantly higher offering salaries. This in
turn, inflates the level of compensation for individuals who remain in those
existing positions.
In those positions
that are facing decreasing demand, increases in compensation are normally based
on “time-in-grade” or tenure within the enterprise.
Positions with
Increased Demand
Positions with
Decreased Demand
Large Enterprises
VP – Information Service
Director Systems & Programming
Manager Data Warehouse
Computer Operations – Shift
Manager
Voice Wireless Communications
Manager
Manager Wireless Communications
Data Center Facility
Administrator
VP –
Consulting Services
Project
Manager Systems
Network
Services Administrator
Network
Technician
Software
Engineer
Systems
Programmers
Mid
Sized Enterprises
VP –
Security (CSO)
Director
Systems & Programming
Director
IT Planning
Computer
Operations – Shift Manager
Computer
Operations – Shift Supervisor
Change
Control Analyst
VP –
Technical Services
Manager
Operating Systems Production
Production Services Administrator
Project
Manager Applications
Network
Service Administrator
Fringe Benefits
About
Janco Associates, Inc
Janco is Mountain States
based consulting firm that publishes the HandiGuide® series of book used by
IT, HR and other professionals as the source of information on topics from
PC Polices to job positions and responsibilities. In addition to its
electronic book and survey publishing, Janco also publishes award winning
business software.
