AIRA Releases the 2018 Remuneration Results.

TO DOWNLOAD THE EXECUTIVE SUMMARY OR A COPY OF THE FULL RESULTS PLEASE CLICK HERE TO DOWNLOAD THE EXECUTIVE SUMMARY OR A COPY OF THE FULL RESULTS PLEASE CLICK HERE

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: This email address is being protected from spambots. You need JavaScript enabled to view it.
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.