MARKET TRENDS & SALARY REVIEW

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1 SPRING 2015 MARKET TRENDS & SALARY REVIEW FINANCE, ACCOUNTING & COMMERCIAL

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3 3 / PERCEPTOR 2015 SPRING SALARY REVIEW WELCOME TO PERCEPTOR S SPRING SALARY REVIEW FOR 2015 We are pleased to report some positive signs in the mid to senior level market for Finance, Accounting & Commercial professionals. In particular, the Sydney market feels more confident than it has for many years, though caution still prevails. We are expecting momentum to slowly build over the next twelve months as confidence spreads across the market. In Melbourne, hiring activity is lower but quite consistent and the outlook is also positive. Movement at mid-levels has not yet extended to more senior levels. Ambitious finance professionals are becoming more confident in approaching the market to find a suitable career move rather than waiting until an internal opportunity arises. This proactive mindset is likely to spread more broadly over the next twelve months and will create more churn then we have seen for many years. So we are quietly positive about the unfolding market opportunities and will be leveraging our 16 years of Perceptor experience to provide our clients and candidates with the best possible advice on taking advantage of improving market conditions. Please contact me directly if you require further information. Ian McAlpine Managing Director Finance / Accounting / Commercial P: E: ian@perceptor.com.au

4 4 / MARKET TRENDS & OBSERVATIONS CORPORATE RESTRUCTURING & TRANSFORMATION Many large corporates have embarked on significant restructuring or transformation programs over the last twelve months. The catalyst has typically been a change in CEO or the need to drive profit growth in a challenging market. The scale of change will vary but it does lead to uncertainty for many employees and inevitably results in certain roles becoming redundant. However, this is the nature of the current business environment and we believe everyone should be realistic about the lack of certainty, and ensure they are proactively managing their careers by building relationships with trusted recruitment advisers who can provide wise counsel and access to market opportunities in volatile times. GROWTH OF BUSINESS PARTNERING We have noticed a change in the expectation of delivery by Finance professionals within the corporate environment. The term business partner is creeping into most position descriptions for mid to senior level roles, even technical and specialist roles such as Tax, Risk and Group Reporting. It is no longer acceptable for functions to operate in silos they must interact and communicate effectively across the whole business and recognise they are supporting the operational divisions and assisting them to perform. Success is dependent on clear communication and building strong internal relationships so that each financial role is adding value to the overall business in a similar way to commercial management and analytical roles which directly contribute to effective business decision-making. INDUSTRY SPECIALISATION The current cautious hiring conditions have undoubtedly led to more conservative hiring decisions, evidenced by the trend towards targeting industry sector experience for mid to senior roles. We advise against this hiring strategy as we know from experience how the majority of senior Finance professionals have moved easily across different sectors over the course of their careers. Few sectors are so complicated that a smart and motivated individual cannot learn about it over time and with support. By excluding more than 90% of possible candidates from other sectors, the chances of getting a strong shortlist of high-calibre talent are greatly reduced. We encourage hiring managers to keep an open mind on industry knowledge if they are genuinely focussed on bringing in top talent and fresh thinking.

5 5 / PERCEPTOR 2015 SPRING SALARY REVIEW OUTLOOK The outlook for mid to senior Finance, Accounting & Commercial roles continues to improve. Sentiment is firming but there is yet to be a substantial increase in activity levels across the broad market. Even high growth sectors such as Property and Construction are not adding significant headcount at the corporate level, and are mindful of keeping a tight rein on costs. The level of churn is gradually increasing, driven in part by the restructuring mentioned above as well as the increasing confidence of individuals to start exploring external opportunities. Large scale systems projects are also creating movement as companies continue to invest in technology to remain competitive. In addition, the NSW Government sector continues its transformation journey and is building on its initial success in hiring experienced corporate professionals to implement best practice management and financial techniques to the major departments. It is also notable that there are substantial cash reserves held by private equity, superannuation funds and overseas investors which are ready to be deployed in the Australian market and this will drive acquisition activity over the next few years. The pace of change and increasingly competitive market in Sydney and Melbourne will drive hiring activity for the next twelve months offering flexible, ambitious and resilient candidates good opportunities to further their careers. Global Executive Search Firms Salaries $100 K to $400 K PERCEPTOR A focused search and selection practice Volume Recruitment Agencies

6 6 / MARKET COMMENTARY & SALARIES CFO MARKET CFO candidates looking for a new role have experienced another challenging period as subdued conditions continue. The level of turnover has been low which is almost counterintuitive given the degree of change and restructuring in the corporate sector. What is clear is how the CFO role is regarded as a critical member of the leadership team with the perception of being a steady and reliable hand at the wheel battling challenging and volatile conditions. Many CFO roles have been broadened to include other functions such as IT, Risk, Procurement and Investor Relations. The versatility of the CFO continues to evolve which requires a broader mix of experience and should encourage aspiring CFOs to ensure they spend some time in non-finance roles as they progress through the ranks. Salary ranges for CFO roles have remained steady but the emphasis on short and long term incentives has resulted in high bonuses due to strong profit results, resulting in a fruitful year for many CFOs. Those who have taken a company public have for the most part emerged with lucrative salary packages subject to continued business growth. M&A activity is likely to increase this year, keeping many CFOs busy in a defensive or acquisitive mode. In this market, CFOs have to be ready for anything. LARGE CORPORATE (ASX 100 or major multinational) $,000 Group CFO Div CFO / Dep CFO $ package % STI + LTI $ package % STI + LTI MEDIUM SIZE CORPORATE (ASX 300, multinational or private / PE) $,000 Group CFO Divisional CFO $ package % STI + LTI $ package % STI + LTI

7 7 / PERCEPTOR 2015 SPRING SALARY REVIEW SENIOR MARKET $200K+ Given the limited amount of senior roles being hired by CFOs, there has been a focus on attracting top-calibre candidates who match the brief and have a strong track record of performance. There has been a lack of urgency in this market which has resulted in some slow-moving hiring processes. From a candidate perspective, patience is key. Few candidates at this level have the luxury of receiving multiple offers yet the top candidates are securing excellent roles in a reasonable timeframe (months not weeks). Activity at the senior level has included divisional CFO roles, Senior Commercial Manager roles, and Head of Shared Services roles. Financial Controller and Performance Reporting / Planning roles have also been in demand. The salary range at this level has not changed but most corporates are averaging 2-4% pay rises with good bonus payments being made. SENIOR MARKET $200K+ SYDNEY & MELBOURNE $,000 General Manager Finance $ Group Treasurer $ Chief Risk Officer / Head of Internal Audit $ Senior Commercial Manager $ Planning Manager $ Corporate Development Manager $ Financial Controller / Manager $ Treasury Manager $ The figures stated show Total Package including cash, superannuation and benefits. Discretionary components such as bonus and options are excluded. Bonus components tend to range from 10-40% of Total Package, with senior executives on the higher end. For further information on the CFO and Senior markets, please contact: Ian McAlpine P: E: ian@perceptor.com.au MID MARKET $140K - 200K+ This market has remained relatively buoyant over the last year with many companies looking for experienced talent across a number of areas. With the expansion of responsibilities falling under a CFO, Finance professionals are finding that their skills are transferable to other areas of business and are being given opportunities to test their experience in areas such as Strategy, Procurement, Business Analytics and Pricing along with other industry specific job families. To replace key vacancies created by these moves, organisations are bringing in external talent. We have seen the highest demand in the $140,000 - $200,000 market within the Commercial Finance and FP&A areas. Professionals that have experience

8 8 / TESTIMONIALS Perceptor truly understands the type of candidates I am seeking to employ; candidates that can be successful in our organisation and candidates who can also benefit from working for us. I can highly recommend Perceptor. KONRAD CFO ASIA PACIFIC MULTINATIONAL HEALTHCARE What has consistently impressed me is Perceptor s ability to truly understand the client s strategy and culture, to interpret the candidate s wants and needs; and then to focus on achieving a sustainable match for all parties involved. RICHARD HEAD OF GLOBAL FINANCE SERVICES ASX TOP 50 SERVICES

9 9 / PERCEPTOR 2015 SPRING SALARY REVIEW in successfully partnering with General Managers and Operational Leaders are well sought after. Other specialist areas such as Strategy, Corporate Development, Technical Accounting and Internal Audit have also shown some signs of life, as companies focus on reducing their reliance on professional services firms. Although there has been a continual flow of hiring at this level, salary growth has remained stable, with organisations focussing on maintaining their fixed cost base. MID MARKET $140K - 200K+ SYDNEY & MELBOURNE $,000 Senior Commercial Manager $ Planning Manager $ Corporate Development Manager $ Financial Controller / Manager $ Compliance & Controls Manager $ Tax Manager $ Project Manager $ Internal / IT Audit Manager $ Strategy Manager $ Treasury Manager $ Commercial Manager $ Corporate Reporting Manager $ Management Accounting Manager $ Corporate Finance Analyst $ Financial Accounting Manager $ Senior Tax Accountant (5 years+) $ Senior Management Accountant $ Group / Corporate Accountant $ Planning / Commercial Analyst $ The figures stated show Total Package including cash, superannuation and benefits. Discretionary components such as bonus and options are excluded. Bonus components tend to range from 10-40% of Total Package, with senior executives on the higher end. For further information on this market, please contact: James Gallagher P: E: james@perceptor.com.au

10 10 / QUALIFIED MARKET $80K - 140K+ This market has started to move and has gained good momentum. Corporates are keen to replenish the skills at this level and bring in talent with potential. Individuals are keen to capitalise on the range of good opportunities available and make a considered career move. Demand has been strong for Financial Accountants, Commercial Analysts and Management Accountants. There is greater urgency in this market as hiring managers realise they will miss out on good candidates if they delay the interview process. A structured, decisive recruitment process will not only impress candidates but is more likely to result in selecting the right candidate. Salary increases are reasonably good at this level, averaging around 5% with faster promotions enabling candidates to step up to a higher salary band. The year ahead is likely to remain very positive for the qualified market. QUALIFIED MARKET $80K - 140K+ SYDNEY & MELBOURNE $,000 Corporate Finance Analyst $ Financial Accounting Manager $ Senior Tax Accountant (5 years+) $ Senior Management Accountant $ Group / Corporate Accountant $ Planning / Commercial Analyst $ Financial Analyst (5 years+) $ Group Treasury Accountant $ Senior Financial Accountant $ Risk Analyst $ Management Accountant $ Financial Accountant $ The figures stated show Total Package including cash, superannuation and benefits. Discretionary components such as bonus and options are excluded. Bonus components tend to range from 10-40% of Total Package, with senior executives on the higher end. For further information on this market, please contact: Duncan McNeill P: E: duncan@perceptor.com.au COMMERCIAL MANAGEMENT - INFRASTRUCTURE & SERVICES The last twelve months has seen a strong market in the infrastructure space in NSW and Victoria brought about by the large number of PPP projects and major contracts coming to market from both the public and private sectors. This has created significant demand in the front end disciplines of Project Director and Bid Director to meet the high level of current and forthcoming tender activity. Conversely, the Queensland and WA markets have encountered a

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12 12 / significant slowdown in activity with the resources sector coming off the boil which has led to a certain degree of migration from these states and a subsequent oversupply of candidates in some disciplines. There has been a flow-through in demand for commercial managers both in the tender teams but also into the contract management end of commercial management as resources are redeployed to deal with these major projects. There has been strong competition for candidates with specific industry and technical competency as there has been a shortage of candidates in certain parts of the infrastructure sector due to some big peaks in project activity during parts of the year. However the broader infrastructure and services sector has seen an unprecedented level of consolidation and company restructuring throughout the last twelve months with significant M&A activity coupled with many major corporates cutting costs and making redundancies. The increased drive for efficiencies coupled with redundancies has put downward pressure on salaries in some parts of the market, particularly where there are no skills shortages. We expect there will be strong demand next year for high calibre commercial managers who can support revenue growth or drive efficiency improvements. With increasing competition to win new business in infrastructure, there will be continued demand for Bid and Strategic Development staff who have a track record of winning within the growth markets. COMMERCIAL MANAGEMENT SYDNEY & MELBOURNE $,000 Project Director $300+ Strategic Development $300+ Commercial Director $ Bid Director $ Senior Commercial Manager $ Project Manager $ Senior Bid Manager $ Commercial Manager $ Bid Manager $ Commercial Finance Manager $ The figures stated show Total Package including cash, superannuation and benefits. Discretionary components such as bonus and options are excluded. Bonus components tend to range from 10-40% of Total Package, with senior executives on the higher end. For further information on this market, please contact: Michael Studden P: E: michael@perceptor.com.au

13 13 / PERCEPTOR 2015 SPRING SALARY REVIEW INTERIM & CONTRACTING There has been a consistent level of activity for the interim market for the past year, particularly at the $100,000 $150,000 range. Businesses have taken the opportunity to hire immediately available talent in the current market across different roles, including Financial Accounting, Management Accounting, Financial Planning and Commercial Finance, either to fill a short term need or a temporary to permanent scenario that ensures a strong cultural fit. At the senior end, the market has been slightly more subdued. There is less movement and more stability given that businesses have now restructured. Internal options can offer secondment solutions for more senior interim roles, leading to positions being replaced at the lower end. Given the commercial and strategic focus of senior interim roles, specific industry and market expertise have been required when searching externally. Exclusive interim searches have proven to be successful at the senior level, with tailored, detailed and efficient processes enabling broad market coverage. There have also been interim requirements in the project space at various levels, from Business Analysts to Project Managers, with the common trend being a demand for hands-on skills for finance change positions. Fixed term contracts rather than daily rates are more prevalent given that businesses are now looking to invest in finance improvement projects and change for the long term. Qualified accountants with strong exposure to finance process or systems changes in large corporates are sought after. Rates remain comparable to permanent salaries for longer term assignments, with roles of six months or longer often remunerated on a fixed term contract basis. Daily or hourly rates are common for short term roles and candidates can still seek a slight premium for urgent requirements. Flexibility on rates and budgets helps both candidates and clients, enabling a wider range of opportunities to become available for the job seeker and offering a more varied candidate selection for the business. Immediately available candidates that are open to interim assignments have the opportunity to complement their experience with a short term contract, whilst their search for a permanent role can continue in the background. They can also consider a long term contract that can develop into permanent. The interim market remains competitive at all levels with clients still seeking specific experience and cultural fit and, with talent readily available, hiring an interim solution at all levels continues to be a viable option for businesses seeking a short or medium-term finance solution. For further information on this market, please contact: Steve Finch P: E: steve@perceptor.com.au

14 14 / RECENT ASSIGNMENTS BY PERCEPTOR EXECUTIVE Group Financial Controller ASX Top 20 Group FP&A Manager Major Infrastructure Group Commercial Manager Listed Healthcare Divisional CFO Listed Entertainment Commercial Finance Director PE backed FMCG COMMERCIAL Bid Director Multinational Services Senior Bid Manager International Project Management Senior Commercial Manager Engineering Services Commercial Finance Manager ASX Financial Services FINANCE Head of Finance Mid size Insurance Finance Manager PE backed Logistics Financial Controller ASX Technology Senior Financial Analyst Major Retailer INTERIM Finance Integration Manager Digital Marketing Commercial Finance Operations Consultant - PE backed Industrial Interim Finance Director Legal firm Financial Modeller Privately owned Training and Consulting

15 15 / PERCEPTOR 2015 SPRING SALARY REVIEW TESTIMONIALS Perceptor has been a great partner to us for many years. We have a unique culture and it takes a certain type of recruiter to really understand what we are looking for. Perceptor has delivered time and again and has truly made a difference to our business by the high calibre individuals they have placed with us. NICKI HR BUSINESS PARTNER, MULTINATIONAL MEDICAL PRODUCTS They really make the effort to understand your business, the role requirements and then identify the correct and best candidate for the position. They consistently deliver outstanding candidates and their client service standards set them apart from other recruitment firms. RICHARD CHIEF FINANCIAL OFFICER, ASX LEISURE GROUP

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