Access the Executive Summary
In a survey released today by the Australasian Investor Relations
Association investor relations professionals from ASX 50 and ASX 251 –
300 companies reported the greatest increases in median remuneration
levels over the last twelve months.
ASX 50 companies reported a 20 per cent increase in their median
remuneration comparative to 2017 results, based on the highest end of
the median range*. For these professionals, median remuneration,
according to the survey results, increased from $325,000-$375,000 in
2017 to $425,000-$450,000.
Companies ranked between 251 – 300 reported a 22 per cent increase in
median remuneration, with 2018 results showing the median range for
these professionals was $250,000 - $275,000 up from $175,000 - $225,000
in 2017.
IROs working for NZX50 companies were paid in the median range of
$200,000-$225,000 in line with the median of $175,000-$225,000 last
year*.
Whilst salaries of investor relations professionals employed in
companies ranked 51 – 100 remained in line with 2017 results reported
short-term incentive payments increased from 11 – 21% in 2017 to 31 –
40% in 2018.
Long-term incentives for IR professional also increased in 2018. The
most popular form of long-term incentive was performance rights and
options continued an upward trend.
The median range of total annual remuneration for IR practitioners in
the 2018 study was $250,000– $275,000 remaining static over the last
twelve months.
Both male and female median remuneration increased by $25,000 since
2017. The study showed the median salary for both male and female is
representative of the market cap in which the majority of each gender is
employed. A higher representation of males in this study were employed
at ASX 1-150 versus a greater representation of females employed at
ASX151-300 companies.
“It is encouraging to see that the gap in remuneration increases
between genders has disappeared”, AIRA’s chief executive officer Mr Ian
Matheson said. “As we see more females moving into roles within larger
cap listed entities, we should see an increase in median remuneration
for female investor relations professionals overall.”
“We are seeing an increase in the number of both IR and non-IR staff
reporting to the Head of Investor Relations. Teams are growing and so
are responsibilities and challenges. MiFID II has impacted investor
relations and the way in which listed entities engage with the
investment community has become more of a focus for IR teams.”
The top challenges faced by IR practitioners in performing their
roles are; balancing the information and relationship needs of the
company and the market within the regulatory environment, acquiring the
resources, including time, to fulfil demand for IR services, cutting
through the communication clutter in the marketplace with clear
messages, gaining relevant, timely information about the business, and
securing senior management commitment to effective IR.
Additional challenges respondents mentioned this year included
managing structurally challenged sell-side particularly inexperienced
sell-side analysts and a lack of capital markets experience by senior
executives.
“The IR role is evolving at a faster pace”, Mr Matheson explains.
“Challenges from increasing investor communication requirements moving
further in-house, increasing focus from investors on ESG accountability
and reporting and growing teams to manage means investor relations is
becoming further embedded in the way in which listed entities operate.
That makes it all the more important that people in IR focus on
continuing professional development (CPD) by taking courses and
attending events such as those offered by AIRA.”
Other significant findings were:
- The highest paying sectors were Consumer Discretionary, Energy,
Financials, Gold, Metals & Mining, REITS, and Industrials. Health
Care, Materials, Metals & Mining, Telecommunication Services and
Utilities joined the list this year.
- Added responsibilities influence higher remuneration, for
practitioners responsible for other activities, such a corporate affairs
and corporate communications, remuneration was $100,000 higher.
- Reporting to a CEO or CFO means higher remuneration levels than those reporting to other senior executives.
- Succession planning is increasing. More than half of the respondents
in ASX51-100, ASX 300+ and NZX 50 companies had succession plans.
- Respondents were more positive about their jobs compared with those surveyed last year.
- The number expressing a desire to change jobs in the coming 12 months reduced to 35%, down from 39% in 2017.
- Essential attributes of IR included being an effective communicator;
being highly numerate and accurate with data; being trustworthy and
acting with integrity at all times; a solid understanding of business
strategy and operations, and investment market processes about needs;
having strong relationships with internal and external stakeholders.
The study was the 12th annual review of investor relations
practitioners in Australia and New Zealand. It was based on the results
of questions sent in July to 225 practitioners across a broad range of
companies listed on the Australian Securities Exchange and New Zealand
Securities Exchange. Responses were received from 85 listed entities.
Some 83% of respondents were 30-50 years old, and one-third or them were
female. Respondents had worked as an in-house IR for a median of 3-5
years.
* Note: in past studies remuneration bands were expressed in $50,000 increments, they are now expressed in $25,000 increments
End.
For more information contact:
Ian Matheson
Chief Executive Officer
T: +61 2 9872 9100
M: 0419 444 731
E: [email protected]
About AIRA
The Australasian Investor Relations Association (AIRA) was
established in 2001 to advance the awareness of and best practice in
investor relations in Australia and New Zealand and thereby improve the
relationship between listed entities and the investment community. The
Association's 160 corporate members now represent over A$1.2 trillion of
market capitalisation, over 80% of the total market capitalisation of
companies listed on ASX.
PLEASE BE ADVISED
1. The Executive Summary is available free of charge to all AIRA Members.
2. Full Survey Results are only available to Members who have completed the survey.
You will need to log-in to the AIRA website - www.aira.org.au - to download both documents.