Occupation Profile for Financial Managers, Branch or Department
Direct and coordinate financial activities of workers in a branch, office, or department of an establishment, such as branch bank, brokerage firm, risk and insurance department, or credit department.
Signficant Points
- Jobseekers are likely to face competition.
- About 3 out of 10 work in finance and insurance industries.
- A bachelor’s degree in finance, accounting, or a related field is the minimum academic preparation, but employers increasingly seek graduates with a master’s degree in business administration, economics, finance, or risk management.
- Experience may be more important than formal education for some financial manager positions—most notably, branch managers in banks.
Earnings
Median annual earnings of wage and salary financial managers were $90,970 in May 2006. The middle 50 percent earned between $66,690 and $125,180. The lowest 10 percent earned less than $50,290 while the top 10 percent earned more than $145,600. Median annual earnings in the industries employing the largest numbers of financial managers were:
| Securities and commodity contracts intermediation | $131,730 |
| Management of companies and enterprises | 105,410 |
| Nondepository credit intermediation | 86,340 |
| Local government | 72,790 |
| Depository credit intermediation | 72,580 |
According to a survey by Robert Half International, a staffing services firm specializing in accounting and finance professionals, directors of finance earned between $79,000 and $184,000 in 2007, and corporate controllers earned between $61,250 and $149,250.
Large organizations often pay more than small ones, and salary levels also can depend on the type of industry and location. Many financial managers in both public and private industry receive additional compensation in the form of bonuses, which, like salaries, vary substantially by size of firm. Deferred compensation in the form of stock options is becoming more common, especially for senior-level executives.
Job Outlook
Employment growth for financial managers is expected is to be about as fast as the average for all occupations. However, applicants will likely face strong competition for jobs. Those with a masters’ degree and a certification will have the best opportunities.
Employment change. Employment of financial managers over the 2006-16 decade is expected to grow by 13 percent, which is about as fast as the average for all occupations. Regulatory reforms and the expansion and globalization of the economy will increase the need for financial expertise and drive job growth. As the economy expands, both the growth of established companies and the creation of new businesses will spur demand for financial managers. Employment of bank branch managers is expected to increase because banks are refocusing on the importance of their existing branches and are creating new branches to service a growing population. However, mergers, acquisitions, and corporate downsizing are likely to restrict the employment growth of financial managers to some extent.
The long-run prospects for financial managers in the securities and commodities industry should be favorable, because more people will be needed to handle increasingly complex financial transactions and manage a growing amount of investments. Financial managers also will be needed to handle mergers and acquisitions, raise capital, and assess global financial transactions. Risk managers, who assess risks for insurance and investment purposes, also will be in demand.
Some companies may hire financial managers on a temporary basis, to see the organization through a short-term crisis or to offer suggestions for boosting profits. Other companies may contract out all accounting and financial operations. Even in these cases, however, financial managers may be needed to oversee the contracts.
Job prospects. As with other managerial occupations, jobseekers are likely to face competition because the number of job openings is expected to be less than the number of applicants. Candidates with expertise in accounting and finance—particularly those with a master’s degree and or certification—should enjoy the best job prospects. Strong computer skills and knowledge of international finance are important; as are excellent communication skills because financial management involves working on strategic planning teams.
As banks expand the range of products and services they offer to include insurance and investment products, branch managers with knowledge in these areas will be needed. As a result, candidates who are licensed to sell insurance or securities will have the most favorable prospects. (See the Handbook statements on insurance sales agents; and securities, commodities, and financial services sales agents.)
Employment
Financial managers held about 506,000 jobs in 2006. Although they can be found in every industry, approximately 3 out of 10 were employed by finance and insurance establishments, such as banks, savings institutions, finance companies, credit unions, insurance carriers, and securities dealers. About 8 percent worked for Federal, State, or local government.