Salaries for investor relations (IR) professionals working for
ASX51-100 companies increased in 2017 and the ASX50 provided equal pay
to both men and women, according to a study released today by the
Australasian Investor Relations Association (AIRA).
ASX50 companies paid a median fixed pay of $325,000-$375,000 to both
genders. Median fixed pay remained static in this band over the last
twelve months. However fixed pay in the ASX51-100 has risen to a median
of $275,000-$325,000, up from $225,000-$275,000 last year.
IROs working for NZX50 companies were paid in the median range of
$175,000-$225,000, below the rate of those employed in the ASX150.
“While it is very encouraging to see that the gap in remuneration
between genders has disappeared among large companies, there is some way
to go amongst smaller companies” AIRA’s chief executive officer Mr Ian
Matheson said. “However, it would appear when people have the same level
of experience, they are now commanding the same remuneration.”
“Pay has risen in part because more people are joining IR ranks from
outside the industry, such as from stockbroking firms, where they
typically have received higher remuneration,” Mr Matheson said.
“The IR role is becoming more and more demanding. No longer do they
simply deal with fund managers and stockbroking analysts. They work in
the front-line dealing with tough environmental, social and governance
(ESG) issues for senior management and boards, and, also have to handle
increasing demands from asset owners and independent research houses,
often with tight resources.” That makes it all the more important that
people in IR focus on continuing professional development (CPD) by
taking courses such as those offered by AIRA.
Pay was bolstered by a hike in short term bonuses, with a record 88%
of respondents saying they qualified for such a reward. Long term
incentives were paid to fewer respondents than in past studies.
Other significant findings were:
The median salary range for male IROs was $225,000-$275,000 and the median range for women was $175,000-$225,000.
- The highest paying sectors were consumer staples, energy, financials excluding REITs and industrials.
- Some 76% of respondents report to the CEO or CFO. Most heads of IR
reported to a CFO when they worked for a company in the ASX1-150 and
NZX50.
- The median bonus range was 11-20% of fixed salary. Performance rights and shares were the most popular forms of incentive pay.
- A record 39% of respondents said they wanted to change jobs up from 32% in 2016.
- The main performance indicators for IR were quality marketplace
relationships; accurate analyst and media reports on company; and timely
and accurate information into the market.
- IR succession plans existed for 37% of respondents, with ASX50 and ASX150-200 the most forward-looking.
- Top challenges for IR were balancing the information and
relationship needs of the company and market within the regulatory
environment; acquiring resources, including time, to meet demand for IR
services; cutting through the communication clutter; gaining relevant,
timely information about the business; and securing senior management
commitment to
effective IR.
- 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 11th annual review of investor relations
practitioners in Australia and New Zealand. It was based on the results
of questions sent in June to 242 practitioners across a broad range of
companies listed on the Australian Securities Exchange and New Zealand
Securities Exchange. A record number of responses were received from 89
listed entities. Some 83% of respondents were 30-50 years old, and 64%
were male. Respondents had worked as an in-house IR for a median of 3-5
years.
To download the Media Release in PDF Format, please click here.
To downloade the Executive Summary or Full Results from the Survey, please click here.
(please
note, the Executive Summary is available to all AIRA Members. The Full
Results are only available to AIRA Members who completed the survey -
you will need to log-in to the AIRA website to access the documents).
End.
For more information contact:
Ian Matheson
Chief Executive Officer
T: +61 2 9872 9100
M: 0419 444 731
E:
[email protected]