Download - Investor Relations 2009-2010
-
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your condent choice
investor relations salary survey
& job market report | 09/0
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your condent choice
Contents
Introduction 3
Demographics 4
Length of Tenure 5
In-House Reporting Line 6
In-House Department Statistics 7
Career Motivations 8
Qualications & Memberships 9
Job Search Channels 10
Economic Climate 11
Reward 12
Bonus Trends 13
Remuneration Breakdown 14
Acknowledgements & Disclaimer 15
Contents
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your condent choice
EMR is delighted to present our latest salary survey and market report on theinvestor relations industry in association with The Investor Relations Society.
Now in its third year, we are able to draw comparisons with 007s and 008s
reports. By comparing length of tenure, department sizes, career motivations,
job security and bonus trends; this document provides some of the mostcomprehensive information currently available on the market. A number of
interesting ndings have been highlighted, including:
Length of tenure appears to have increased with a larger number of
individuals spending longer with their current company
There was no signicant difference between the level of bonuses in 2009 and
008 but there were greater satisfaction levels with almost three quarters
feeling satised or highly satised
The average size of IR teams across FTSE 00 and 50 organisations remained
relatively stable in 009 despite the economic downturn
Career development remains the most popular reason for moving employer
85% of responders felt secure or very secure in their current role
Whether you are looking for a new role or planning to recruit, this report offers
clear insight into key compensation trends and drivers. We hope you nd the
information and results produced useful and would welcome any comments or
recommendations for our next report.
Kind regards
Simon Bassett | Managing Director
Introduction
Introduction
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your condent choice Demographics
type of employer
FTSE 00 Company
Financial Communications Consultancy (IR/PR)
FTSE 50 Company
Internationally Listed Company
Private Equity/Hedge Fund
Investment Bank
FTSE 50 Company
AIM-Listed Company
79 investor relations professionals were surveyed over Septemberand October 009
5% of responders were female and 6% male
89% were employed permanently, % freelancing or consulting, %
interim or contracting and % were currently unemployed
79% of responders worked in-house and % for a consultancy
The length of experience with the highest representation amongst
responders was in the -6 year segment, making up 6%
job titles of sample
Executive Director
Divisional Director
Account Director
Account Manager
Account Executive
%
%
0%
7%
%
6%
%
6%
8%
%%
Director
Head of
Manager
Executive
Associate
Analyst
consultancy
in-house
%
%
%
7%
%
%
%8%
%
8%
%% %
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your condent choice 5
time in IR
Length of Tenure
Overall, there is a signcant increase in length of tenure within
the IR industry
The majority of responders at 75% from our 007 survey had up
to three years IR experience compared to 6% in both 008 and
009
The percentage of individuals with more than ten years IR
experience is also notable: in 2009, 14% had been in the industry
for this length of time compared to just % in 007
%
time in current role
A - Less than year
B - years
C - years
D - 5 years
E - 5 0 years
F - More than 0 years
009
008
007
0
5
10
15
20
25
30
35
A B C D E F
%
A B C D E
F
G
A - Less than year
B - years
C - 6 years
D - 7 0 years
E - 5 years
F - 6 - 0 years
G - More than 0 years
0
5
10
15
20
25
30
35
40
%
In general, length of tenure increased in 009, with a larger
number of IROs who had been in their roles for - and -5 years
at 8% and 8% respectively compared to 8% and % in 008 and
% and 6% in 007
However, there were fewer individuals who had been in their
current roles for longer than ve years; the strongest responsecame from the -5 year segment, representing 69% of responders
F
009
008
007
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your condent choice 6In-House Reporting Line
IR function reporting line
009
008
A - Corporate CommunicationsB - FinanceC - Ofce of CEOD - Dual to CEO and CFOE - TreasuryF - Marketing
Almost half of IR functions at 6% had a reporting line into the
nance function which is similar to 2008s results
A new development saw % of IROs having a direct reporting line
into both the CEO and the CFO
There was a growth in the number of individuals reporting into
Corporate Communications but this is still relatively small at %
compared to 9% in 008
9% of IROs felt that a high value was given to IR by their senior
management, which is not surprising considering the proximity of
IR with FDs and CEOs ofces
Half of responders believed that the IR function should report
directly into the FD
%
0
10
20
30
40
50
A B C D E F
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your condent choice 7
size of IR department
%
009
008
007
0
10
20
30
40
50
60
1 2-3 4-5 6-7 8 -1 0 1 0+
FTSE 00
FTSE 50
At 6%, the majority of IR departments consisted of - individuals
which when compared to previous years, % in 008 and 5% in
007, indicates IROs were affected by headcount reductions as
much as any industry
Also reected was a decrease in the number of IR departments
with more than 6 individuals: 20% in 2009, 22% in 2008 and 33%
in 007
As identifed in 008, the average size of IR teams across FTSE 00s
and 50s remained relatively stable during the last year with themajority of teams consisting of - individuals
There was, however, a greater discrepancy between FTSE 00s and
250s: as expected, departments in FTSE 250s tended to be smaller
with the majority, at 56%, of IR functions being carried out by
individual
Of FTSE 00s, the greatest proportion at % had - IROs and 6%
of departments had a headcount of more than 0
In-House Department Statistics
year on year comparison
FTSE 100 and 250 comparison
0
5
10
15
20
25
30
35
40
%
1 2-3 4- 5 6-7 8 -1 0 1 0+
number of staff
number of staff
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your condent choice 8
Career development has remained a stable leader as the primary
reason IROs made the move from their previous roles. This suggestsa need for line managers to invest more into developing their staff
in order to retain them
In 009, % of responders left due to redundancy which is an
increase from 9% in 008 but still relatively low considering
economic conditions
Career Motivations
top three reasons for moving acceptable salary increase to move
009
008
007
The majority of responders at 70% regarded a 5-0% increase insalary to be an acceptable incentive for a move
Just 5% would consider moving for parity with a similarly low
number who stated that more than a 5% increase would be
required
2009
2008
2007
Career Development
New Challenge/More Interesting Work 2
Higher Salary
Career Development
Internal Promotion 2
New Challenge/More Interesting Work
Career Development
New Challenge/More Interesting Work 2
Redundancy
0% 5 10 15 20 25 30
%
0
5 - 10
11 - 15
16 - 20
21 - 25
26 - 30
31+
percentage of responders
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your condent choice 9Qualications and Memberships
qualications in addition to a degree
5%
8%
%
membership of professional bodies
The IR Society
ICAEW
CFA Institute
CIMA
ACCA
IoD
SII
ACT
BIRA
CIM
CIPR
FSA
ICAS
IIRF
The Financial
Services Forum
60%
%
6%
%
%
%%
%
% %
%
MastersFully Qualied AccountantCerticate in Investor RelationsSII Certicate in InvestmentsIMCCFAMBAPhDPart Qualied Accountant
%
%
0%
9%
8%
7%7%
%
The most signicant professional membership amongst responders
was of The Investor Relations Society, held by 60%
The other signicant group was the 13% who were members of theICAEW (Institute of Chartered Accountants of England & Wales)
Other memberships included CIPD, CIM and CIPR but none of these
had more than % membership amongst our responders
One quarter of our responders were not members of a professional
body
Over three quarters of responders at 78% held a Bachelors Degree
and 8% a Masters
Of those who held a degree, 23% were qualied or part qualiedaccountants; a number that has remained relatively stable since
007
There was a division in opinion amongst responders as to whether
an accountancy qualication was a prerequisite for a career in IR
with the majority at 55% concluding that it was not
13% held the Certicate in Investor Relations
7% of responders held a Doctorate/PhD
Overall, the concentration of qualications held was relatively
similar to 008
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your condent choice 0
how current role was sourced
Job Search Channels
length of search for current role
009
008
A - Recruitment consultancy/headhunterB - Internal promotionC - Direct approachD - Personal contactE - Advertising (online)F - Professional networkG - Advertising (print)
009
008
A - Up to monthB - - monthsC - -6 monthsD - 7-9 monthsE - 0- monthsF - -8 monthsG - 9 months yearsH - Over years
7% of individuals found their current role through a recruiter or
headhunter which is a similar gure to 2008
There was an increase in the number of direct approaches at
6% compared to 0% in 008. This may align with the increasing
number of IR professionals with their own consultancy practices
Half of responders perceived recruitment consultancies to be the
most important avenue for their job search followed by personalcontacts at %. The latter is indicative of a greater emphasis on
personal networks
The most common duration of job search was less than one month
at % while 79% found their roles within three months. This is
only a % increase from 008s averages
0
5
10
15
20
25
30
35
40
%
A B C D E F G
0
10
20
30
40
50
A B C D E F G H
%
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your condent choice Economic Climate
009
008
007
A - YesB - NoC - Unsure
66% of IROs saw their long-term career within IR; only a slight
decrease on levels in 2008 and perhaps due to the difculties of
recent markets
9% of responders stated that they could not see their future within
IR and 6% were unsure
Taking a broader view, around half believed they had good career
prospects in general and 86% believed that the skills they hadgained from their current position would benet them in future
roles
Interestingly, just under half of responders saw IR as a good
stepping stone from which to move into a board level position
current job security
009
008
A - Very InsecureB - InsecureC - SecureD - Very Secure
The majority of responders at 7% rated their current situation as
secure; around double the proportion who felt this to be the case
in 008
A slightly smaller number of individuals felt themselves to be
insecure; % compared to 6% in 008
There was a far smaller proportion at the extremes of very secure
(% down from 5%) and very insecure (% down from %)
Just under half of IROs were either optimistic or very optimistic
about the 00 economy with just under one third feeling
pessimistic. These opinions are consistent with perceived levels
of job security
long-term future in the IR profession
0
10
20
30
40
50
60
70
80
%
A B C
0
10
20
30
40
50
60
70
80
%
A B C D
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your condent choice
benets currently received
A - 5 days holiday or moreB - Annual bonus schemeC - Car or car allowanceD - Flexible benetsE - Flexible workingF - Company pension schemeG - InsuranceH - Share incentive
0
20
40
60
80
100
%
A B C D E F G H
Reward
There was a great deal of variation in the perceived importance
of specic benets with the general weighting as annual bonus
scheme, 5 days or more holiday, company pension, share incentive
and insurance
Car allowances and exible benets were not regarded as key
components of future packages
The three benets most commonly found in our responders
packages were 5 days or more holiday (87%), annual bonus scheme
(8%) and company pension (69%)
009
benets assessment
0
50
100
150
200
250
300
350
400
A B C D
A - IrrelevantB - Quite ImportantC - Very ImportantD - Vital
5 days holiday or moreAnnual bonus schemeCar or car allowanceFlexible benetsFlexible workingGood company pension schemeInsurance
Share incentive
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your condent choice Bonus Trends
satisfaction with last bonusbonus as a percentage of salary
009008007
A - Highly Dissatised
B - Dissatised
C - Satised
D - Highly Satised
009008007
7% of IROs received a bonus in 009 compared to 89% in 008 and8% in 007
One quarter of responders received a bonus of 0-9% which is a
similar gure to 2008 and a signicant increase of 8% from 2007
On average, individuals reported that their 009 bonuses were at
similar levels to 008
Despite no signicant change from 2008 in bonuses paid, there wasan increase in the level of satisfaction amongst responders with
almost three quarters feeling satised or highly satised compared
to 60% in 008
Also reected was that the level of satisfaction is statistically
the same in 2009 as 2007 despite a signicant decrease in the
level of bonuses from this period. This suggests, perhaps, a shiftin expectations given 009s economic climate and it will be
interesting to see what our 00/0 report concludes
There was a large decrease in the number of people who felt highly
dissatised, 5% compared to 16% in 2008, which possibly suggests
a greater appreciation for this nancial reward during a difcult
trading period for many organisations
0
10
20
30
40
50
60
70
80
%
0 5 10 15 20 25
-9
0-9
0-9
0-9
0-9
50-59
60-69
70-79
80-89
90-00
%
%
percentage of responders
More than 00+
A B C D
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your condent choice Remuneration Breakdown
in-house
Level Min Salary Ave basicsalary fromsample
Max Salary Ave bonusfrom sample Max Bonus
IR Director 7,500 7,95 75,000 6,967 50,000
Head of IR 5,000 9,609 0,000 ,97 86,000
Senior IR Manager 0,000 6,98 9,000 ,50 7,500
IR Manager/Analyst 5,000 50,5 80,000 , 0,000
IR Ofcer 0,000 0,067 8,000 7,950 ,000
IR Executive 0,000 ,950 0,000 ,8 8,000
IR Assistant 5,000 5,089 8,000 7,6 ,000
consultancy
Level Min Salary Ave basicsalary fromsample
Max Salary Ave bonusfrom sample
Max Bonus
Executive Director/Partner 88,000 8,65 00,000 70,57 0,000
Divisional Director 59,000 87,67 5,000 ,9 65,000
Account Director 0,000 6,76 00,000 5,575 75,000
Senior Account Manager 5,000 6,750 75,000 9,07 5,000
Account Manager ,000 6,57 67,500 7,055 0,000
Account Executive 5,000 ,885 ,000 ,500 5,000
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your condent choice 5
If you spent ve minutes completing the survey then many thanks for yoursupport. If you didnt then please do take part next year.
Thank you to The Investor Relations Society for their active involvement and
support in marketing the questionnaire and ndings.
Should you be anticipating any changes or hiring within your own department
or perhaps would like to discuss your own career, please do get in touch for adiscreet conversation.
Simon Bassett
Managing Director
EMR
High HolbornLondon
WCV 7PB
[email protected] | 00 7850 600
This research was carried out by means of an electronic questionnaire. Theremuneration tables are supplemented with data and market information thatEMR has access to.
The results are provided as generic market information only. EMR does not make
any warranties regarding the use, validity, accuracy or reliability of the results
and information obtained. EMR will not be liable for any damages of any kindarising out of or relating to use of this information.
Acknowledgements Disclaimer
Acknowledgements & Disclaimer
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EMR
322 High Holborn
London
WC1V7PB
t: +44 (0)20 7850 6200
w: www.emrrecruitment.com/city
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