Investor Relations 2009-2010

8/3/2019 Investor Relations 2009-2010

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investor relations salary survey

& job market report | 09/0
http://www.emrrecruitment.com/cityhttp://www.ir-soc.org.uk/http://www.emrrecruitment.com/cityhttp://www.emrrecruitment.com/city


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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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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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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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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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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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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

e: [email protected]
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Investor Relations 2009-2010

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