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 www.niri.org .