investor relations salary survey & job market report | 09/0

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Contents
Introduction 3 4 5 6 7 8 9 10 11 12 13 14 15

Demographics Length of Tenure

In-House Reporting Line

In-House Department Statistics Career Motivations

Qualifications & Memberships Job Search Channels Economic Climate Reward Bonus Trends

Remuneration Breakdown

Acknowledgements & Disclaimer

Contents

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Introduction
EMR is delighted to present our latest salary survey and market report on the investor 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 most comprehensive information currently available on the market. A number of interesting findings 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 significant difference between the level of bonuses in 2009 and 008 but there were greater satisfaction levels with almost three quarters feeling satisfied or highly satisfied 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 find the information and results produced useful and would welcome any comments or recommendations for our next report. Kind regards

Simon Bassett | Managing Director

Introduction

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type of employer

job titles of sample

% % % 8% % % 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

% %

in-house
8% 6% Director Head of Manager Executive Associate Analyst

6% %

8%

%

79 investor relations professionals were surveyed over September and 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%
7% 7%

consultancy
% % % % Executive Director Divisional Director Account Director Account Manager Account Executive

% % % 0%

Demographics

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time in current role

%

time in IR
%

35 30 25 20 15 10 5 0

40
A - Less than  year B -   years C -   years D -  5 years E - 5 0 years F - More than 0 years

35 30 25 20 15

%

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 009 008 007
F A B C D E F G

009 008 007

10 5 0

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 five years; the strongest response came from the -5 year segment, representing 69% of responders

Overall, there is a signficant 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

Length of Tenure

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IR function reporting line

% 50

40 30 20 10 0
A B C D E F

A - Corporate Communications B - Finance C - Office of CEO D - Dual to CEO and CFO E - Treasury F - Marketing 009 008

Almost half of IR functions at 6% had a reporting line into the finance 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 offices Half of responders believed that the IR function should report directly into the FD

In-House Reporting Line

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size of IR department
% 40
35 30 25 20 15 10 5 0
1 2-3 4-5 6-7 8-10 10+

year on year comparison

009 008 007

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 reflected 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 the majority 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

number of staff

% 60
50 40 30 20 10 0

FTSE 100 and 250 comparison

FTSE 00 FTSE 50

2-3

4-5

6-7

8-10

10+

number of staff

In-House Department Statistics

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top three reasons for moving

2009 Career Development New Challenge/More Interesting Work Higher Salary  2  2008 Career Development Internal Promotion New Challenge/More Interesting Work  2  2007 Career Development New Challenge/More Interesting Work Redundancy  2 

acceptable salary increase to move

%
0 5 - 10 11 - 15 16 - 20 21 - 25 26 - 30 31+

009 008 007

0%

10

15

20

25

30

percentage of responders

The majority of responders at 70% regarded a 5-0% increase in salary 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

Career development has remained a stable leader as the primary reason IROs made the move from their previous roles. This suggests a 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

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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

qualifications in addition to a degree

% 7% 8% % 9% 8% 0% 5% % % 7% % Masters Fully Qualified Accountant Certificate in Investor Relations SII Certificate in Investments IMC CFA MBA PhD Part Qualified Accountant

% % %

6% %

60%

The most significant professional membership amongst responders was of The Investor Relations Society, held by 60% The other significant group was the 13% who were members of the ICAEW (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 qualified or part qualified accountants; a number that has remained relatively stable since 007 There was a division in opinion amongst responders as to whether an accountancy qualification was a prerequisite for a career in IR with the majority at 55% concluding that it was not 13% held the Certificate in Investor Relations 7% of responders held a Doctorate/PhD Overall, the concentration of qualifications held was relatively similar to 008

Qualifications and Memberships

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how current role was sourced

%

length of search for current role

50
%

40 35 30 25 20 15 10 5 0
A B C D E F G

009 008 A - Recruitment consultancy/headhunter B - Internal promotion C - Direct approach D - Personal contact E - Advertising (online) F - Professional network G - Advertising (print)

40

009 008 A - Up to  month B - - months C - -6 months D - 7-9 months E - 0- months F - -8 months G - 9 months  years H - Over  years

30

20

10 0
A B C D E F G

7% of individuals found their current role through a recruiter or headhunter which is a similar figure 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 personal contacts 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

Job Search Channels

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0

long-term future in the IR profession

%
80 70 60 50 40 30 20 10 0
A B C

current job security

80

009 008 007 A - Yes B - No C - Unsure

70 60 50 40 30 20 10 0
A B C D

009 008 A - Very Insecure B - Insecure C - Secure D - Very Secure

66% of IROs saw their long-term career within IR; only a slight decrease on levels in 2008 and perhaps due to the difficulties 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 had gained from their current position would benefit 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

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

Economic Climate

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benefits currently received

100

benefits assessment
A - 5 days holiday or more B - Annual bonus scheme C - Car or car allowance D - Flexible benefits E - Flexible working F - Company pension scheme G - Insurance H - Share incentive 5 days holiday or more Annual bonus scheme Car or car allowance Flexible benefits Flexible working Good company pension scheme Insurance Share incentive

400 350 300 250 200 150

80

60

40

20

100 50

A - Irrelevant B - Quite Important C - Very Important D - Vital

The three benefits most commonly found in our responders packages were 5 days or more holiday (87%), annual bonus scheme (8%) and company pension (69%)

There was a great deal of variation in the perceived importance of specific benefits with the general weighting as annual bonus scheme, 5 days or more holiday, company pension, share incentive and insurance Car allowances and flexible benefits were not regarded as key components of future packages

009

Reward

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bonus as a percentage of salary

%
-9 0-9 0-9 0-9 0-9 50-59 60-69 70-79 80-89 90-00 More than 00 +

satisfaction with last bonus

% 80
70 60

A - Highly Dissatisfied B - Dissatisfied C - Satisfied D - Highly Satisfied 009 008 007

009 008 007

50 40 30 20 10

10

15

20

25 %

percentage of responders

7% of IROs received a bonus in 009 compared to 89% in 008 and 8% in 007 One quarter of responders received a bonus of 0-9% which is a similar figure to 2008 and a significant increase of 8% from 2007 On average, individuals reported that their 009 bonuses were at similar levels to 008

Despite no significant change from 2008 in bonuses paid, there was an increase in the level of satisfaction amongst responders with almost three quarters feeling satisfied or highly satisfied compared to 60% in 008 Also reflected was that the level of satisfaction is statistically the same in 2009 as 2007 despite a significant decrease in the level of bonuses from this period. This suggests, perhaps, a shift in 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 dissatisfied, 5% compared to 16% in 2008, which possibly suggests a greater appreciation for this financial reward during a difficult trading period for many organisations

Bonus Trends

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in-house
Level IR Director Head of IR Senior IR Manager IR Manager/Analyst IR Officer IR Executive IR Assistant Min Salary 7,500 5,000 0,000 5,000 0,000 0,000 5,000 Ave basic salary from sample 7,95 9,609 6,98 50,5 0,067 ,950 5,089 Max Salary 75,000 0,000 9,000 80,000 8,000 0,000 8,000 Ave bonus from sample 6,967 ,97 ,50 , 7,950 ,8 7,6 Max Bonus 50,000 86,000 7,500 0,000 ,000 8,000 ,000

consultancy
Level Executive Director/Partner Divisional Director Account Director Senior Account Manager Account Manager Account Executive Min Salary 88,000 59,000 0,000 5,000 ,000 5,000 Ave basic salary from sample 8,65 87,67 6,76 6,750 6,57 ,885 Max Salary 00,000 5,000 00,000 75,000 67,500 ,000 Ave bonus from sample 70,57 ,9 5,575 9,07 7,055 ,500 Max Bonus 0,000 65,000 75,000 5,000 0,000 5,000

Remuneration Breakdown

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Acknowledgements
If you spent five minutes completing the survey then many thanks for your support. 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 findings. 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 a discreet conversation. Simon Bassett Managing Director EMR  High Holborn London WCV 7PB [email protected] | 00 7850 600

Disclaimer
This research was carried out by means of an electronic questionnaire. The remuneration tables are supplemented with data and market information that EMR 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 kind arising out of or relating to use of this information.

Acknowledgements & Disclaimer

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EMR 322 High Holborn London WC1V 7PB t: +44 (0)20 7850 6200 e: [email protected] w: www.emrrecruitment.com/city

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