SALARY SURVEY 2014
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 2014. 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 01 637 7331 or email 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, email caroline.conlon@charteredaccountants.ie. Careers service: http://www.charteredaccountants.ie/members/your-institute/careers-and-recruitment-service/employersbusiness-services/ 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 01 6377219/8 or email: http://leinster.charteredaccountants.ie/ leinstersociety@charteredaccountants.ie Stephen O Donnell (Chairman) Chartered Accountants Ireland - Leinster Society
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) 90,607 64 14,716 9 12,875 11 1998 102,160 25,000 235,000 Employees 1-50 - 47 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 + 5,000 + 10,000).
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 2014. 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 2014. 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 2012. 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. www.thepanel.com
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
INDUSTRY & COMMERCE TABLE 1 SALARY FOR ALL CHARTERED ACCOUNTANTS 6 YEAR SUMMARY 2014 2013 2012 2011 2010 2009 Head of Finance 136,318 129,961 132,893 133,200 130,200 126,200 No.2 in Finance 91,445 84,475 100,020 88,900 97,509 96,200 No.3 in Finance 74,099 74,790 65,278 72,200 73,900 74,700 Managing Director* 205,340 179,793 173,029 185,900 144,400 146,600 FINANCIAL SERVICES Head of Finance 165,890 147,858 161,292 161,300 143,100 168,200 No.2 in Finance 102,060 99,892 114,171 99,900 104,500 98,700 No.3 in Finance 75,729 72,204 90,644 87,800 71,500 85,800 Managing Director* 256,210 203,499 288,731 234,100 268,600 186,600 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 89,596 101,739 98,743 115,300 107,300 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.
TABLE 2 PERCENTAGE OF TOTAL RESPONDENTS RECEIVING FRINGE BENEFITS (1,147 RESPONSES) 2014 2013 2012 2011 2010 2009 % % % % % % Institute Subscription 79 78 83 87 75 82 Pension Scheme 69 70 76 70 70 69 Health Insurance 47 46 46 42 45 44 Share Options 15 15 19 16 17 18 Club Subscriptions 14 13 12 15 15 17 Subsidised Loans 5 5 3 6 6 6 Company Cars 6 6 7 8 8 11 Car Parking 50 49 53 48 50 48 Car Allowances* 19 20 21 - - - Sponsored Personal Development** 48 45 - - - - * 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
TABLE 3 SALARY BY YEAR OF QUALIFICATION Year of Qualification Industry & Commerce Financial Services Practice Not for Profit 2013 52,215 67,671* 46,119 53,550 2012 57,007 65,891* 57,281-2011 57,355 58,147 54,319 48,500 2010 65,116 68,742 56,925-2009 73,693 74,600 72,714 65,239 2008 77,249 70,693 76,281 53,886 2003-2007 105,315 94,969 92,361 97,115 1998-2002 130,029 129,293 105,414 79,110 1993-1997 164,655 191,178 103,731 104,300 1983 1992 154,773 215,092 96,533 102,310 1973 1982 170,057 160,970 113,500 101,092 Number of valid responses 501 314 252 100 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.
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) 90,607 64 14,716 9 12,875 11 1998 102,160 25,000 235,000 51 100 (29) 106,291 59 15,991 21 10,999 21 1997 120,010 39,000 250,000 101-250 (32) 118,825 72 30,563 22 11,700 22 1996 145,539 87,500 250,400 251 500 (13) 129,219 85 27,290 31 13,975 38 1996 160,457 80,000 240,000 501 1000 (14) 144,643 86 46,333 29 12,750 29 1995 190,857 70,000 550,000 1000+ (13) 148,462 85 39,045 38 17,700 23 1998 190,615 73,000 442,000 Overall 2014 113,366 70 25,980 20 13,160 20 1997 136,318 25,000 550,000 YOQ SALARY LOWEST HIGHEST Year Overall 2014 1997 136,318 25,000 550,000 Overall 2013 1996 129,961 27,300 415,000 Overall 2012 1994 132,893 20,000 880,000
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) 59,827 62 8,977 10 11,000 5 2008 66,908 35,000 147,000 51-100 (15) 70,573 60 10,189 7 10,000 0 2005 77,353 50,000 152,000 101-250 (16) 79,481 63 14,380 10 9,500 0 2005 90,250 38,000 285,000 251-500 (10) 81,450 40 25,500 20 9,000 10 2002 85,740 45,900 172,500 501-1000 (13) 86,308 92 16,283 20 11,133 8 2004 104,677 45,000 175,000 1000 + (33) 94,975 70 12,817 30 12,240 3 2001 107,920 51,200 215,666 Overall 2014 80,161 66 13,301 17 13,017 4 2004 91,445 35,000 285,000 YOQ SALARY LOWEST HIGHEST Year Overall 2014 2004 91,445 35,000 285,000 Overall 2013 2004 84,475 33,000 385,000 Overall 2012 2001 100,020 35,000 304,000
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) 57,860 67 5,639 17 6,100 0 2008 62,636 38,000 93,600 51-100 (8) 58,909 75 2,002 0 0 0 2007 60,410 37,000 82,050 101-250 (11) 60,073 91 4,703 9 6,000 9 2009 65,803 52,500 88,000 251-500 (3) 48,333 100 2,500 0 0 0 2011 50,833 48,000 56,000 501-1000 (3) 69,333 67 4,250 0 0 0 2007 72,167 49,000 85,000 1000+ (31) 74,900 77 10,472 16 11,800 3 2005 85,233 50,000 178,125 Overall 2014 67,002 81 6,978 11 10,157 6 2007 74,099 37,000 178,125 YOQ SALARY LOWEST HIGHEST Year Overall 2014 2007 74,099 37,000 178,125 Overall 2013 2006 74,790 41,600 146,000 Overall 2012 2007 65,278 37,000 125,000
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 2014 152,266 74 58,750 37 14,800 41 1991 205,340 60,000 569,000 2013 151,114 55 37,500 36 12,717 36 1990 179,793 48,000 360,000 2012 147,361 43 42,469 24 14,400 38 1989 173,029 66,000 460,000 Other Categories 2014 77,535 73 16,115 16 15,688 5 2005 92,302 39,000 285,000 2013 83,574 72 17,596 23 13,233 6 2003 99,773 30,000 559,000 2012 90,528 66 18,847 18 11,957 6 1999 105,119 40,000 414,000 Other Categories include: Internal Auditors, Consultants, Treasurers, etc.
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 80 36 70 48 20 8 3 20 68 24 No. 2 Finance 82 55 74 56 19 7 2 4 61 23 No. 3 Finance 82 55 71 58 26 11 0 6 63 23 Managing Directors 89 59 78 70 22 19 0 41 67 25 Other 83 59 84 57 27 12 1 5 51 25
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) 115,917 83 33,500 28 15,640 6 1998 148,733 64,000 390,000 51-100 (8) 105,113 63 18,000 13 17,000 38 1996 122,238 40,000 160,000 101-250 (8) 112,600 100 24,625 63 11,100 0 1998 144,163 103,000 176,000 251-500 (2) 139,000 50 55,000 100 14,337 0 1989 153,337 167,500 194,174 501-1000 (4) 167,750 100 59,589 75 14,733 0 1995 238,389 125,500 381,000 1000+ (9) 162,611 56 78,600 89 17,313 11 1996 222,778 112,500 550,000 Overall 2014 127,361 78 38,838 49 15,086 10 1997 165,890 40,000 550,000 YOQ SALARY LOWEST HIGHEST Year Overall 2014 1997 165,890 40,000 550,000 Overall 2013 1996 147,858 41,000 313,200 Overall 2012 1993 161,292 61,000 403,000
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) 87,918 86 17,632 29 9,875 7 2006 104,811 45,000 215,000 51-100 (3) 87,417 100 16,333 0 0 0 2008 103,750 75,750 125,000 101-250 (5) 101,100 100 25,680 0 0 0 2002 126,780 66,400 200,000 251-500 (1) 70,000 100 8,000 0 0 0 2005 78,000 78,000 78,000 501-1000 (11) 86,480 45 19,400 36 13,500 0 2002 100,207 45,000 163,100 1000+ (7) 76,071 71 8,050 57 11,750 0 2004 90,540 61,008 123,006 Overall 2014 84,499 78 17,984 27 12,227 2 2004 102,060 45,000 215,000 YOQ SALARY LOWEST HIGHEST Year Overall 2014 2004 102,060 45,000 215,000 Overall 2013 2003 99,892 44,370 180,000 Overall 2012 2001 114,171 43,000 508,000
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 2014 69,300 58 6,675 21 10,170 4 2005 75,729 45,000 120,000 2013 65,719 63 9,280 6 10,950 0 2007 72,204 39,000 149,000 2012 78,973 48 12,750 45 11,144 9 2001 90,644 40,000 295,600 Managing Directors 2014 172,295 81 95,824 43 12,578 10 1992 256,210 100,000 508,000 2013 166,441 76 40,615 41 14,569 0 1993 203,499 60,000 340,000 2012 182,257 73 139,031 41 12,300 0 1995 288,731 113,900 1,300,000 Other Categories 2014 88,864 61 22,359 35 11,446 5 2003 107,024 37,000 750,000 2013 88,948 58 18,105 37 12,045 4 2003 104,269 40,360 630,000 2012 90,911 52 22,674 41 12,410 5 2001 107,119 42,500 715,000 Other Categories include: Internal Auditors, Consultants, Treasurers, etc.
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 88 55 86 78 31 35 14 10 73 26 No. 2 Finance 88 50 85 65 40 25 10 2 43 26 No. 3 Finance 86 43 81 62 5 19 14 4 24 26 Managing Directors 95 65 100 90 40 40 5 10 85 27 Other 80 53 85 62 15 27 18 5 40 26
TABLE 13 SALARIES IN PRACTISING FIRMS (254 RESPONDENTS) SALARY LOWEST SALARY HIGHEST SALARY Big 4 Seniors & Assistant Managers 2014 46,871 40,000 66,000 2013 44,602 37,000 52,000 2012 47,794 40,000 63,589 Big 4 Audit Managers & Directors 2014 86,747 45,400 155,000 2013 77,085 52,500 121,000 2012 81,793 54,000 180,000 Big 4 Tax Managers & Directors 2014 79,034 50,000 160,000 2013 80,407 42,000 140,000 2012 75,133 45,000 140,000 Big 4 Other Managers, Directors & Specialists 2014 89,956 45,000 202,000 2013 101,379 52,500 252,500 2012 98,743 51,500 205,000 Non Big 4 Seniors & Assistant Managers 2014 38,606 28,000 60,000 2013 44,555 28,000 130,000 2012 40,786 25,000 70,000 Non Big 4 Managers 2014 73,783 40,000 230,000 2013 79,757 27,300 360,000 2012 67,059 31,500 180,000 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.
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 76 39 58 55 21 0 39 25 71 29 26 44 9 0 15 22 82 46 79 54 18 0 61 27 76 48 59 52 7 0 17 24 65 27 5 5 0 0 30 21 Non Big 4 Managers 69 42 20 0 2 0 38 23
Employment Status 3% 3% 1% 1% Full-time permanent 92% Full-time temporary 3% Part-time 3% 92% Unemployed 1% Career break 1%
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%
Gender of respondents 39% 61% Male 61% Female 39%
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%
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%
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%
Have you been promoted in the last three years? 57% 43% Yes 43% No 57%
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
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