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Transcription

1 SALARY SURVEY 2014

2 Introduction from Stephen O Donnell, the Chairman of Chartered Accountants Ireland Leinster Society In June 2014, those members of the Leinster Society of Chartered Accountants who were in salaried employment (i.e. excluding self-employed accountants) were sent a questionnaire asking for details of their salary as of 31 st of January We received 1,170 valid responses from accountants in full-time employment (1,344 responses in 2013). We received responses from eight unemployed accountants compared to 16 last year; eight people on career breaks; and 42 accountants employed on a part-time basis compared to 67 last year. These responses were excluded from the results. We are indebted to Paul McArdle of The Panel for his assistance in compiling the survey. Our Recruitment Services: For a more comprehensive and confidential discussion in relation to the salary survey and market trends please contact Karin Lanigan, Manager, Careers Advisory and Recruitment Service with Chartered Accountants Ireland on or careers@charteredaccountants.ie. A conversation with us can be of huge benefit if you are in the process of planning or conducting salary reviews or indeed you are due to have a salary review yourself. If you are seeking to recruit a Chartered Accountant we can also assist you through our Recruitment Service. Alternatively, if your firm is interested in taking on a trainee, please contact our Training Support Unit, caroline.conlon@charteredaccountants.ie. Careers service: Events for your diary: The Leinster Society, which represents in excess of 10,000 members, is the largest district society of Chartered Accountants Ireland. The committee of the Leinster Society provides brand awareness, educational and social services for its members. As well as monthly luncheon meetings, the following are our main upcoming events: Business Luncheon with Ivan Yates 4 th September 2014 GPA Leinster Society Event, Croke Park 19 th September 2014 PAA (Published Accounts Awards) 20 th November 2014 Leinster Society Christmas Lunch 12 th December 2014 Charity Valentines Ball 14 th February 2015 Annual Rugby Luncheon 27 th February 2015 To view all Leinster Society events please go to: You can contact the Leinster Society on /8 or leinstersociety@charteredaccountants.ie Stephen O Donnell (Chairman) Chartered Accountants Ireland - Leinster Society

3 Interpreting the tables Using Table 4 as an example: TABLE 4 REMUNERATION OF HEAD OF FINANCE DEPARTMENT INDUSTRY AND COMMERCE (148 RESPONSES) EMPLOYEES BASE SALARY % WHO RECEIVED % RECEIVING A CAR CAR % WITH CARS YOQ SALARY LOWEST % % % Year HIGHEST 1 50 (47) 90, , , ,160 25, ,000 Employees people responded who work in companies employing a maximum of 50 people. Average Base Salary - 90,607 Total of the 47 respondents base salaries in this category, divided by 47. % who received bonus - 64% - 30 respondents got a bonus, equating to 64%. Average bonus received 14,716 The average bonus received by those who have received a bonus. % receiving a car allowance - 9% - Sum of total number of respondents (4) who received a car allowance. Average car allowance received - 12,875 The average car allowance received by those who received a car allowance. % with cars In this example, 5 respondents had a car (as opposed to a car allowance), so percentage is 11%. Average YOQ Average year of qualification. Average Salary Package, 102,160 The total compensation (base salary, bonuses, car allowances and cars (allocating a value of 10,000)) of all respondents divided by total number of respondents. Where someone receives a car as distinct from a car allowance, we have given it a value of 10,000. For example, if someone has a basic salary of 60,000, a bonus of 5,000 and a company car, the total salary package is 75,000 ( 60, , ,000).

4 Salary Survey 2014 The overall trend for 2014 is positive for Chartered Accountants according to our survey. Some findings: The Average Base Salary of a Chartered Accountant in the Leinster region (Footnote 1) increased this year by nearly 2% from 87,500 in 2013 to 89,042 this year. The Average Base Salary (Footnote 2) for a recently qualified (2013) Chartered Accountant is now just over 49,784 ( 49,580 for Chartered Accountants (2012)). The Average Salary Package for a Managing Director increased by 15% in the past year from 179,793 to 205,340 in The Average Salary Package in nearly all categories is up on 2013 or close to 2013 figures. Almost 2 out of 3 (61% in 2014 as opposed to 48% in 2013) of Chartered Accountants received a salary increase in the last three years, while 43% reported receiving a promotion (up from 40% in 2013). In the last three years 62% of respondents have had a salary increase, 27% stayed on the same package while 11% of respondents took a pay cut. A further 93% of respondents expressed feeling confident or very confident about their job security heading into Roughly 30% of respondents work in indigenous Irish business and 30% in multinationals. Big 4 firms consistently pay more than Non Big 4 across the board. Big 4 Audit Managers and Directors salaries are also on the increase this year. Consistent with other years, Chartered Accountants in Financial Services are better paid than their counterparts. A higher percentage gets Fringe Benefits and their holidays are greater by two days on average. Heads of Finance in Industry had their best year salary wise in the last six years. Heads of Finance salaries in Financial Services continue to rise. One in five Chartered Accountants get a car allowance; one in 17 get a company car. Company cars are getting less commonplace year by year. The proportion of Chartered Accountants who have the cost of professional development covered by their employer has risen from 46% to 48%. Close to half the Chartered Accountants surveyed have a car parking space, institute subscription paid, a pension scheme and health insurance paid. The number of respondents who categorised themselves as unemployed members has reduced. One in seven Chartered Accountants receive share options, down from one in five in Footnote 1: All the BASE salaries of all respondents divided by the total of respondents gives us the Average Base Salary. Footnote 2: All the BASE salaries of all respondents who qualified ACA in 2013 divided by the total of respondents (qualified ACA in 2013) gives us the Average Base Salary. Paul McArdle, Managing Partner The Panel Recruiting ACAs for over 25 years.

5 Content relevant to everyone Table 1 Table 2 Table 3 Average Salary Package for all Chartered Accountants - 6 Year Summary Percentage of Total Respondents Receiving Fringe Benefits Average Salary Package by Year of Qualification If you work in Industry and Commerce Table 4 Table 5 Table 6 Table 7 Table 8 Remuneration of Head of Finance Department Remuneration of No. 2 Position in Finance Department Remuneration of No. 3 Position in Finance Department Remuneration of Other Positions Annual Leave and Fringe Benefits If you work in Financial Services Table 9 Table 10 Table 11 Table 12 Remuneration of Head of Finance Department Remuneration of No. 2 Position in Finance Department Remuneration of Other Positions Annual Leave and Fringe Benefits If you work in Practice Table 13 Table 14 Remuneration in Practising Firms Annual Leave and Fringe Benefits

6 INDUSTRY & COMMERCE TABLE 1 SALARY FOR ALL CHARTERED ACCOUNTANTS 6 YEAR SUMMARY Head of Finance 136, , , , , ,200 No.2 in Finance 91,445 84, ,020 88,900 97,509 96,200 No.3 in Finance 74,099 74,790 65,278 72,200 73,900 74,700 Managing Director* 205, , , , , ,600 FINANCIAL SERVICES Head of Finance 165, , , , , ,200 No.2 in Finance 102,060 99, ,171 99, ,500 98,700 No.3 in Finance 75,729 72,204 90,644 87,800 71,500 85,800 Managing Director* 256, , , , , ,600 BIG 4 FIRMS Seniors/Assistant Managers 46,871 44,602 47,794 45,700 45,900 52,600 Audit Managers and Directors 86,747 77,805 81,793 80,900 84,300 80,900 Tax Managers and Directors 79,034 80,407 75,133 75,700 81,600 83,300 Other Managers and Special 89, ,739 98, , ,300 79,000 NON BIG 4 FIRMS Seniors/Assistant Managers 38,606** 44,555 40,786 39,700 43,600 46,800 Managers 73,783 79,757 67,059 65,700 71,200 75,300 *The range of salaries for Managing Directors is much larger than for other categories. As a result of this wide range and the small sample size, the Average Salary Package fluctuates considerably from year to year. **The Average Salary Package for Non Big 4 Seniors and Assistant Managers are down on last year; this is because more Seniors than Assistant Managers took part in the survey.

7 TABLE 2 PERCENTAGE OF TOTAL RESPONDENTS RECEIVING FRINGE BENEFITS (1,147 RESPONSES) % % % % % % Institute Subscription Pension Scheme Health Insurance Share Options Club Subscriptions Subsidised Loans Company Cars Car Parking Car Allowances* Sponsored Personal Development** * The percentage of respondents receiving car allowances was measured separately for the first time in 2012 ** The percentage of respondents receiving Sponsored Personal Development was measured separately for the first time in 2013

8 TABLE 3 SALARY BY YEAR OF QUALIFICATION Year of Qualification Industry & Commerce Financial Services Practice Not for Profit ,215 67,671* 46,119 53, ,007 65,891* 57, ,355 58,147 54,319 48, ,116 68,742 56, ,693 74,600 72,714 65, ,249 70,693 76,281 53, ,315 94,969 92,361 97, , , ,414 79, , , , , , ,092 96, , , , , ,092 Number of valid responses Not for Profit includes those working in voluntary bodies, hospitals, colleges and the public service. It was not meaningful to analyse these responses separately. Those working in not for profit organisations earn less than their colleagues in commerce and practice. They also get fewer fringe benefits. * One salary was significantly higher than their peers in both 2013 and 2012 and brought the average up considerably.

9 EMPLOYEES TABLE 4 REMUNERATION OF HEAD OF FINANCE DEPARTMENT INDUSTRY AND COMMERCE (148 RESPONSES) BASE SALARY % WHO RECEIVED % RECEIVING A CAR CAR % WITH CARS YOQ SALARY LOWEST % % % Year HIGHEST 1 50 (47) 90, , , ,160 25, , (29) 106, , , ,010 39, , (32) 118, , , ,539 87, , (13) 129, , , ,457 80, , (14) 144, , , ,857 70, , (13) 148, , , ,615 73, ,000 Overall , , , ,318 25, ,000 YOQ SALARY LOWEST HIGHEST Year Overall ,318 25, ,000 Overall ,961 27, ,000 Overall ,893 20, ,000

10 EMPLOYEES TABLE 5 REMUNERATION OF NO.2 POSITION IN FINANCE DEPARTMENT INDUSTRY AND COMMERCE (108 RESPONSES) BASE SALARY % WHO RECEIVED % RECEIVING A CAR CAR % WITH CARS YOQ SALARY LOWEST HIGHEST % % % Year 1-50 (21) 59, , , ,908 35, , (15) 70, , , ,353 50, , (16) 79, , , ,250 38, , (10) 81, , , ,740 45, , (13) 86, , , ,677 45, , (33) 94, , , ,920 51, ,666 Overall , , , ,445 35, ,000 YOQ SALARY LOWEST HIGHEST Year Overall ,445 35, ,000 Overall ,475 33, ,000 Overall ,020 35, ,000

11 EMPLOYEES TABLE 6 REMUNERATION OF NO.3 POSITION IN FINANCE DEPARTMENT INDUSTRY AND COMMERCE (62 RESPONSES) BASE SALARY % WHO RECEIVED % RECEIVING A CAR CAR % WITH CARS YOQ SALARY LOWEST HIGHEST % % % Year 1-50 (6) 57, , , ,636 38,000 93, (8) 58, , ,410 37,000 82, (11) 60, , , ,803 52,500 88, (3) 48, , ,833 48,000 56, (3) 69, , ,167 49,000 85, (31) 74, , , ,233 50, ,125 Overall , , , ,099 37, ,125 YOQ SALARY LOWEST HIGHEST Year Overall ,099 37, ,125 Overall ,790 41, ,000 Overall ,278 37, ,000

12 BASE SALARY TABLE 7 REMUNERATION OF OTHER POSITIONS INDUSTRY AND COMMERCE % WHO RECEIVED % RECEIVING A CAR CAR % WITH CARS YOQ SALARY LOWEST % % % Year HIGHEST Managing Directors , , , ,340 60, , , , , ,793 48, , , , , ,029 66, ,000 Other Categories , , , ,302 39, , , , , ,773 30, , , , , ,119 40, ,000 Other Categories include: Internal Auditors, Consultants, Treasurers, etc.

13 INSTITUTE SUB TABLE 8 ANNUAL LEAVE AND FRINGE BENEFITS INDUSTRY AND COMMERCE SPONSORED PERSONAL DEVELOPMENT PENSION SCHEME HEALTH INSURANCE SHARE OPTIONS CLUB SUBS LOANS CARS CAR PARKING ANNUAL LEAVE % % % % % % % % % Days Head of Finance No. 2 Finance No. 3 Finance Managing Directors Other

14 TABLE 9 REMUNERATION OF HEAD OF FINANCE DEPARTMENT FINANCIAL SERVICES (49 RESPONSES) EMPLOYEES BASE SALARY % WHO RECEIVED % RECEIVING A CAR CAR % WITH CARS YOQ SALARY LOWEST % % % Year HIGHEST 1-50 (18) 115, , , ,733 64, , (8) 105, , , ,238 40, , (8) 112, , , , , , (2) 139, , , , , , (4) 167, , , , , , (9) 162, , , , , ,000 Overall , , , ,890 40, ,000 YOQ SALARY LOWEST HIGHEST Year Overall ,890 40, ,000 Overall ,858 41, ,200 Overall ,292 61, ,000

15 TABLE 10 REMUNERATION OF NO. 2 POSITION IN FINANCE DEPARTMENT FINANCIAL SERVICES (41 RESPONSES) EMPLOYEES BASE SALARY % WHO RECEIVED % RECEIVING A CAR CAR % WITH CARS YOQ SALARY LOWEST % % % Year HIGHEST 1-50 (14) 87, , , ,811 45, , (3) 87, , ,750 75, , (5) 101, , ,780 66, , (1) 70, , ,000 78,000 78, (11) 86, , , ,207 45, , (7) 76, , , ,540 61, ,006 Overall , , , ,060 45, ,000 YOQ SALARY LOWEST HIGHEST Year Overall ,060 45, ,000 Overall ,892 44, ,000 Overall ,171 43, ,000

16 TABLE 11 REMUNERATION OF OTHER POSITIONS FINANCIAL SERVICES BASE SALARY % WHO RECEIVED % RECEIVING A CAR CAR % WITH CARS YOQ SALARY LOWEST HIGHEST No. 3 in Finance % % Year , , , ,729 45, , , , , ,204 39, , , , , ,644 40, ,600 Managing Directors , , , , , , , , , ,499 60, , , , , , ,900 1,300,000 Other Categories , , , ,024 37, , , , , ,269 40, , , , , ,119 42, ,000 Other Categories include: Internal Auditors, Consultants, Treasurers, etc.

17 INSTITUTE SUB TABLE 12 ANNUAL LEAVE AND FRINGE BENEFITS IN FINANCIAL SERVICES SPONSORED PERSONAL DEVELOPMENT PENSION SCHEME HEALTH INSURANCE SHARE OPTIONS CLUB SUBS LOANS CARS CAR PARKING ANNUAL LEAVE % % % % % % % % % Days Head of Finance No. 2 Finance No. 3 Finance Managing Directors Other

18 TABLE 13 SALARIES IN PRACTISING FIRMS (254 RESPONDENTS) SALARY LOWEST SALARY HIGHEST SALARY Big 4 Seniors & Assistant Managers ,871 40,000 66, ,602 37,000 52, ,794 40,000 63,589 Big 4 Audit Managers & Directors ,747 45, , ,085 52, , ,793 54, ,000 Big 4 Tax Managers & Directors ,034 50, , ,407 42, , ,133 45, ,000 Big 4 Other Managers, Directors & Specialists ,956 45, , ,379 52, , ,743 51, ,000 Non Big 4 Seniors & Assistant Managers ,606 28,000 60, ,555 28, , ,786 25,000 70,000 Non Big 4 Managers ,783 40, , ,757 27, , ,059 31, ,000 Partners in practising firms were not included in the survey as they are employers and not employees, and as such they are not paid a salary.

19 TABLE 14 ANNUAL LEAVE AND FRINGE BENEFITS PRACTISING FIRMS INSTITUTE SUB SPONSORED PERSONAL DEVELOPMENT PENSION SCHEME HEALTH INSURANCE CLUB SUBS CARS CAR PARKING ANNUAL LEAVE % % % % % % % Days Big 4 Seniors & Assistant Managers Big 4 Audit Managers & Directors Big 4 Tax Managers & Directors Big 4 Other Managers & Directors Non Big 4 Seniors & Assistant Managers Non Big 4 Managers

20 Employment Status 3% 3% 1% 1% Full-time permanent 92% Full-time temporary 3% Part-time 3% 92% Unemployed 1% Career break 1%

21 How confident are you that you will be in a job this time next year? 26% 7% 67% Very confident 67% Fairly confident 26% Not confident 7%

22 Gender of respondents 39% 61% Male 61% Female 39%

23 In what sector are you employed? Other Services, 10% Not for Profit, 9% Other Business, 8% Big 4 Practising Firm, 10% Non Big 4 Practising Firm, 12% Manufacturing, 3% FMCG, 3% IT & Telco, 8% Financial Services, 27% Construction & Property, 4% Pharmaceutical, 4% Food Industry, 2%

24 Ownership of Company 28% 10% 30% Business unit of an Irish plc 10% Private Irish company 30% 32% Subsidiary of a foreign owned multinational 32% Other 30%

25 Salary change in the last three years Decreased over 25% 2% Decreased by 10% to 25% 4% Decreased by up to 10% 6% Same 27% Series1 Increased by up to 10% 22% Increased by 10% to 25% 19% Increased over 25% 20% 0% 5% 10% 15% 20% 25% 30%

26 Have you been promoted in the last three years? 57% 43% Yes 43% No 57%

27 Appendix 1 - Salary Survey 2014 questions: 1. In what year did you pass the final exam? 2. In what year were you admitted to the Chartered Accountants Ireland as a member? 3. What is your employment status? Full time permanent Full time temporary Part-time Unemployed Self employed Career Break 4. Gender: 5. In what sector are you employed? Big 4 practising firm/non Big 4 practising firm/financial Services/Manufacturing /Construction & Property/Other Services/FMCG/Food/IT & Telco/Pharmaceutical/Other Business/Non for profit (government, education) 6. Number of employees? 7. Ownership of company (e.g. subsidiary of a foreign owned multinational, private Irish company, Business unit of an Irish plc, etc.)? 8. For those employed in practice, your title: Audit Senior in a practising firm/tax Senior in a practising firm/other Senior in a practising firm Audit Manager/Director in a practising firm/tax Manager/Director in a practising firm Other Manager/Director in a practising firm

28 9. Your level of responsibility (for those not employed in practice): Managing Director/Head of Finance/No 2 in Finance reporting to No 1 in Finance/No 3 in Finance/Other 10. What was your basic salary as at 31st January 2014? 11. Do you have a company car? 12. If you have a car allowance, how much is it? 13. What is your expected bonus for 2014? 14. How many days of annual leave are you entitled to (excluding public holidays)? 15. Which of the following fringe benefits do you have (please tick all that apply)? Car Parking Space/Preferential Loans/Health Insurance/Club Subscriptions/Pension Scheme/Share Options/Institute Sub/Sponsored Personal Development 16. How has your total remuneration changed in the last three years? Increased/Same/Decreased 17. How confident are you that you will be in a job this time next year? Very confident/fairly confident/not confident