CFA poll indicates bonus reduction, layoff and workload increase

CFA Institute, the global association for investment professionals,released the results of a global member poll on these two questions:

1.What impact has the crisis had/may it have on your career and/or your firm?
2.Professionally speaking, could you have done anything to help mitigate the current crisis for your firm or your clients?

Nearly 1,700 members responded to the poll. On the first question, 71 percent of respondents said their bonus had been or might be reduced or eliminated, 39 percent said their firm had laid off or might lay off others, and 57 percent said their workload had or was likely to increase. Only 3 percent said the crisis had had no impact.

Regionally, there are a few significant and notable differences. In general, those in the Americas (Canada, United States, and Latin America) region and the Europe/Middle East/Africa (EMEA) region seemed to have been impacted to a greater extent than members in the Asia Pacific region when it comes to increase in workload, layoffs in the firm, losing clients, and firm acquisitions and shut downs. A significantly higher proportion of those in the EMEA region indicated their bonus had been or might be reduced/eliminated (77 percent) compared to those in the Americas (68 percent) region.

“Undoubtedly this is a tough period for the entire world. Career opportunities cannot be compared with those in the past. This means that investment professionals would need to stay competitive and be adaptive to changes, including the possibility of relocation, probably more so than ever before. Hopefully this is a time when CFA Institute can especially help our local members by providing them with more lifelong learning opportunities and connection with the global CFA Institute membership network,” said Dr. Ashvin P. Vibhakar, CFA, managing director, Asia-Pacific Operations, CFA Institute.

As to the second question, 40 percent of the respondents said there was nothing they could have done to help mitigate the crisis, but 40 percent said they could have better understood the various risks in the market. Only 12 percent said they could have exerted greater clarity in communications to others about security attributes.

A significantly lower proportion of members in the Asia Pacific region indicated there was nothing they could have done to help mitigate the current crisis for their firm or clients (23 percent) compared to the Americas (45 percent) and EMEA (38 percent) regions. The Asia Pacific members indicated they could have had a better understanding of the various risks in the market and could have done better research on underlying investments.

“The historic meltdown of the global capital markets is the result of a number of factors, including the actions, and inactions, of a variety of market participants. In many ways, the current collapse echoes the mistakes made in past crises: ignorance of risk coupled with widespread use of leverage,” said Dr. Vibhakar.