Investor Relations Professionals Demonstrate Strategic Value to Management and Boards of Canadian Issuers, According to CIRI Survey

TORONTO--()--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.

“Over the past 12 months, CIRI has seen many changes in the Canadian capital markets, which have impacted the roles, responsibilities and compensation of IR professionals in Canada,” commented Yvette Lokker, President and Chief Executive Officer of CIRI. “Despite these macro economic changes, we are pleased to see that our findings continue to show the strategic value and insights IROs bring to their issuer organizations, which is also reflected by higher compensation.”

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 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%).
  • IROs increase strategic influence by providing insights to management and Boards
    • 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).
    • 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.
  • IR compensation is on the rise
    • 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.

Click here for full survey results.

About the Survey
The Canadian Investor Relations Institute (CIRI) conducted the eighth Investor Relations Compensation and Responsibilities Survey during the fourth quarter of 2014. One hundred and eighty-nine investor relations professionals took part, including 55% of qualified CIRI corporate members.

The research objectives were to:

  • provide members, non-members and industry professionals with budget information for benchmark analysis; and
  • track key trends in the roles, responsibilities, resourcing and compensation of IR professionals in Canada.

The survey was conducted by NovaShare Solutions, a technology firm that provides public companies and corporate advisors with enterprise shareholder communications and corporate governance research tools.

About CIRI
CIRI is a professional, not-for-profit association of executives responsible for communication between public corporations, investors and the financial community. CIRI contributes to the transparency and integrity of the Canadian capital market by advancing the practice of investor relations, the professional competency of its members and the stature of the profession. With more than 500 members and four chapters across the country, CIRI is the voice of IR in Canada. For further information, please visit www.CIRI.org.

Contacts

Canadian Investor Relations Institute (CIRI)
Yvette Lokker, 416-364-8200
President & Chief Executive Officer
ylokker@ciri.org

Release Summary

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 CIRI survey.

Contacts

Canadian Investor Relations Institute (CIRI)
Yvette Lokker, 416-364-8200
President & Chief Executive Officer
ylokker@ciri.org