Now Available! CIRI's 2014 IR Compensation and Responsibilities Survey
The role of investor relations is increasingly being recognized for its strategic value as more IROs are counseling management as well as presenting to the Board. According to a new survey released by the Canadian Investor Relations Institute (CIRI), almost two-thirds of respondents are engaged with the Board while 82% have provided strategic counsel to management over the past year. With this expanded responsibility comes enhanced compensation with over one third of respondents earning at least $225,000 in total cash compensation, including 19% who earned $300,000 or more. The average total cash compensation for IROs was $188,500.
Key survey findings:
Investor relations is a valued corporate function
- Three-quarters of IROs work for companies with separate IR departments, in line with 2012.
- While many IROs have good proximity to the key decision makers, their proximity to the CEO/CFO has decreased from the last survey.
- Average IR budgets are $967,000 (excluding allocated overhead, but including compensation), up 5% from 2012.
IROs increase strategic influence by providing insights to management and Boards
- IROs are highly educated with almost half (49%) of respondents having a designation, the most common being the CFA (16%), CPIR (11%) and CPA, CA (8%).
- 82% of respondents have counseled management within the last 12 months, up from 79% in 2012.
- 64% of respondents are responsible for making presentations to their Board, up from 57% in 2012.
- In order to provide capital market insights, more IROs are responsible for conducting research (88% monitor share ownership, up from 83% in 2012; 85% analyze stock and competitor information, up from 82% in 2012).
IR compensation is on the rise
- As the key contact for institutional shareholders, IROs are the ‘go to’ person when putting forward a proposal to the Board, being contacted 70% of the time.
- Total cash compensation for IROs averaged $188,500.
- Over one third of respondents earned at least $225,000, up from 24% in 2011, while 19% of respondent IROs earned more than $300,000, up from 15% in 2011.
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