Lehman Brothers and Merrill Lynch 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.