NIRI Survey of Investor Relations Executives

July 21, 2005 ( - The National Investor Relations Institute has released its 2005 biannual survey assessing the responsibilities and compensation for investor relations practitioners and counselors.

The survey shows investor relations continues to be considered a career position, according to a news release.   The senior IR officer is considered to have a career position by 83% of those surveyed, according to the report.   The IRO position is a career goal for 58% of respondents.

The average number of years experience as an IRO increased to 9 from 7.6 in 2003. Thirty seven percent have 10 or more years experience.   IR practitioners hold mostly senior titles, with 37% vice presidents and 42% directors.   Eighty six percent of those who spend 50% or more of their time on investor relations are the chief spokespersons for their company.

The average annual cash compensation of IROs surveyed, including salary and bonus, was $169,900 in 2004.   This is a 10% increase from 2002.   Ninety eight percent of IROs at mega-cap companies received a bonus in 2004, and 81% of IROs at small-cap companies received one.   IR counselors reported an annual average compensation of $138,200.

IROs with a professional background in finance/accounting earned 9% more than those with corporate communications or public relations backgrounds, and 21% more than those with a sales or marketing background.   By contrast, IR counselors with backgrounds in communications or PR earned 25% more than those with backgrounds in finance/accounting backgrounds and 30% more than those with sales or marketing backgrounds.

The average base pay for women IROs increased 8.5% helping narrow the gender pay gap to 2% from 26% in 2002.

The average annual budget for IR programs is $743,000, and a typical IR office employs two or three professionals, according to the survey.   Sixty nine percent of IROs report to the company’s chief financial officer and 17% report to the CEO/president/chairman.

IROs affect other areas of corporate planning.   Eighty percent report participation in disclosure committees, 73% in planning the annual shareholder meeting, 70% in crisis communication, and 43% in establishing corporate governance policies.

More about NIRI can be found at .