TORONTO, May 31 /CNW/ - In an increasingly complex environment, the executive management teams and boards of public companies are turning to investor relations professionals for guidance. According to a new survey released by the Canadian Investor Relations Institute (CIRI), nearly three-quarters of respondents have separate, specialized IR departments with 82% reporting directly to the C-suite. Half of the respondents are responsible for crucial areas such as governance and disclosure policies and are engaged with the board. With this expanded responsibility comes enhanced compensation with one-in-four investor relations professionals earning at least $225,000 in total cash compensation, including 12% who collected $300,000 or more.
"Our members tell us that the role of investor relations continues to expand and gain recognition within the organization as a strategic function rather than a tactical role," said Tom Enright, President and CEO of CIRI. "The survey validates this shift within the profession and the increasing demands on investor relations professionals resulting from an ever-changing regulatory environment, uncertain market conditions and increasing investor demands."
Key survey findings:
- Greater recognition of IR as a separate function
- 72% of corporate IR professionals work in separate, specialized IR
departments (up from 64% in 2007)
- 39% of corporate IR professionals are fully dedicated to IR
activities (up from 28% in 2007)
- The big are getting bigger
- 31% of the largest cap companies ($5.0 B+) employ five or more
full-time IR professionals (up from 15% in 2007)
- Comparisons with pre-recession budgets indicate fiscal restraint
among smaller companies; however, among larger cap companies
($1.0 B+) budgets have grown 13% since 2007
- 45% of companies saw IR budgets rise year-over-year (2010 vs. 2009)
- Increased seniority and influence
- 27% of IR professionals with 10+ years of experience has nearly
doubled (up from 15% in 2007)
- Almost one-third (32%) of respondents are vice presidents, senior
vice presidents or executive vice presidents (up from 18% in 2007)
- Half of respondents are being asked for guidance by their senior
management and boards
- Growing accountability and sophistication
- Two-thirds use at least one formal measure of IR effectiveness (up
from 61% in 2007) with perception studies being used by 20% of
respondents (up from 12% in 2007)
- Growing compensation despite economic uncertainty and low inflation
- Among those who spent 50% or more of their time on IR, total cash
compensation averaged $165,160, implying a 6.3% compounded annual
increase since 2007
- One-in-four investor relations professionals earned at least
$225,000 in total cash compensation, including 12% who collected
$300,000 or more
Click here (http://www.ciri.org/resources/library/ciri_publications/?item_id=1477) for full survey results.
About the Survey
The Canadian Investor Relations Institute (CIRI) and the CIRI Chapters (Quebec, Ontario, Alberta and British Columbia) sponsored the Investor Relations Compensation and Responsibilities Survey. This survey, the sixth on this topic, was fielded in the first quarter of 2010. One hundred and fifty investor relations professionals took part, including 35% of qualified CIRI corporate members.
The research objectives were to:
- track trends and changes in the roles, responsibilities, resourcing
and compensation of the IR profession in Canada; and
- provide compensation and budget information for benchmarking.
The survey was conducted by Carolyn Vose & Associates, an organization that specializes in market research for organizations operating in global capital markets.
CIRI is a professional, non-profit association of executives responsible for communication between public corporations, investors, and the financial community. For the past 20 years, CIRI has been dedicated to advancing the stature and credibility of the investor relations profession and the competency of its members. With close to 600 members, CIRI is the world's second largest society of investor relations professionals. CIRI chapters are located in Ontario, Quebec, Alberta, and British Columbia. Visit www.ciri.org for more information.
SOURCE Canadian Investor Relations Institute
For further information: For further information: Tom Enright, President & Chief Executive Officer, (416) 364-8200, firstname.lastname@example.org; Yvette Lokker Director, Communications & Professional Development, (416) 364-8200, email@example.com