CIMA Irelandqualified salary survey 2011

Table of contents

Foreword 1

Executive summary 2

Economic context 3

Main findings 5

Overview of remuneration packages and the career ladder 5

Satisfaction with current pay and conditions 9

Expectations for future pay and conditions 11

Improving employability and opportunities 15

Attracting candidates and retaining employees 16

Special report – the strength of multinationals in Ireland 20

One word to describe...management accounting 24

Appendix 25

Table of salaries and bonuses 25

Technical information 27

Further information 27

Acknowledgements 27

Global offices 28

1

Foreword Welcome to our third global members’ salary survey. Each year, we ask Chartered Management Accountants to give us an insight into their working lives and their outlook for the year ahead. Despite another rollercoaster year, the global CIMA community has shown notable resilience to the ongoing turbulence in the global economy. Although the number of global members who are satisfied with their current salary (68%) has not changed since our 2010 survey, their overall outlook on Job security and career development has improved. Almost one third (30%) are expecting a salary increase in the next 12 months and two-fifths are considering alternative job opportunities in the next two years. In terms of general business confidence, significantly fewer expect their employers to impose freezes and cuts than when asked in 2009. But the fact remains that the proportion of members expecting corporate cutbacks in jobs, salaries and budgets is still larger than the proportion expecting increases in these same areas. While CIMA members can command top-level salaries, many are working long hours for their rewards. In 13 of the 14 countries surveyed, two-thirds or more of members are working over 40 hours a week – and sometimes up to 50 hours. This chimes with our findings in Ireland, where more than half (54%) are currently working between 41 and 50 hours a week and 16% are working a 51 to 60 hour week. While financial reward is evidently a major motivator for our members, our survey found that quality of life is also important. In terms of working in other countries, the USA (60%), the UK (48%), Canada (29%) and Australia (28%) are the most popular destinations for members in Ireland. Cautious optimism is still the general outlook of our members across the world. Closer to home, CIMA members in Ireland have made it clear that they are reaping the benefits of their professional qualification. A total of 88% said that their CIMA skills has opened up greater career opportunities and 82% said the qualification has given them greater access to others areas of the business. 88% said their CIMA toolkit had also provided more scope to develop an international career. For the first time, our Irish members were asked to describe what management accounting means to them in a single word. The four most frequent words were: challenging, interesting, flexible and strategic. I would contend that our members have provided four very good reasons why CIMA’s offering continues to be the qualification of choice in the global business arena.

Charles Tilley Chief Executive CIMA

2

Executive summary

This report details the findings of the third annual CIMA member salary survey for Ireland. The first survey was conducted in 2009 and comparisons with this and the 2010 study are provided where relevant. The 2011 CIMA survey reveals that members in Ireland are earning on average €80,788 in basic salary, plus €6,873 in bonus payments (9% of basic salary). 63% are expecting a bonus in 2011, and among those, the average anticipated payment is €10,884. The survey shows that average annual salary tends to increase with experience, with significant changes at ten to 19 years (a 19% increase) and again at 20 years of experience (a 29% increase). Although the outlook for the year ahead is positive, relative to the picture in 2009 immediately following the recession, the Irish economy remains vulnerable. Members in 2011 remain cautious about the year ahead: the proportions expecting cuts and freezes in jobs, salaries and budgets are larger than the proportions expecting increases in those same areas. In terms of expectations for personal futures, almost one-third (30%) of CIMA members are expecting their salary to increase. However, over two-fifths (44%) expect their own salary to be frozen, which is comparable to 41% expecting salary freezes across the organisation in which they work. One in seven anticipate their salary being reduced at an average rate of 6.4%, and just under one in ten are facing the prospect of redundancy over the next 12 months. The vast majority of members in Ireland perceive the CIMA qualification to enable employment internationally and to create career opportunities more generally. There is a similarly high level of agreement that the qualification enables movement across all areas of the business. Indeed, two-fifths are planning to move job within the next two years, including one-quarter within six months. Of those planning to change jobs, the majority (84%) plan to remain in Ireland; this is in line with the high proportions who are satisfied with their current salary (70%) and benefits package (76%). International trade and foreign direct investment are important to the Irish economy, especially from the UK, the USA and other EU member states. Our special report, which compares salary and employment expectations among members working in Irish-owned and internationally-owned businesses, illustrates the strength of multinationals in Ireland to weather the economic storm. Internationally-owned businesses are likely to have a greater ability to sustain generous benefits packages, maintain or increase salaries and headcount, and withstand the continued pressure from the economic environment. Meanwhile, Irish-owned businesses are likely to try to limit redundancies by curbing increases in staffing costs. However, where salaries are expected to increase, they will be on average proportionately larger in Irish-owned than in internationally-owned businesses.

‘Internationally-owned businesses are likely to have a

greater ability to withstand the

continued pressure from the economic

environment. Meanwhile, Irish-

owned businesses will limit

redundancies by curbing staffing

costs.’

3

Economic context

Introduction The economic situation in Ireland remains challenging; however a timid recovery is underway supported by strong exports. While domestic demand is weak, the Government is implementing its targets set under the IMF/EC support package, as confirmed by the latest Troika review published in September.

Figure 1: Economic indicators – forecasts for Ireland

% 2011 2012 2013

GDP growth 1.70% 1.10% 1.75%

GNP growth 0.50% 0.10% 1.00%

Unemployment rate 14.40% 13.00% 12.25%

Interest Rates 1.50% 0.75% 0.75%

Inflation 1.00% 1.30% 1.50%

Retail Sales (Vol) -3.00% -2.30% 0.00%

Source: Oliver Gilvarry, Dolmen Securities Economic growth After three years of declining economic growth, we are guiding a return to GDP growth this year. Our estimate for GDP growth in 2011 is 1.70%, with positive growth in 2012 of 1.10%. Our 2013 estimate of 1.75% is also below consensus reflecting the current weak conditions. Based on our estimates, GDP at the end of 2013 will still only be at 2005 levels.

GNP will be slower to recover as the domestic economy works through tough austerity measures, which will impact an already subdued domestic demand. We expect GNP to be slightly positive this year (0.50%), but only growing by 0.1% next year and growing 1.00% in 2013. The difference between GDP and GNP is the strong performance of the international sector in Ireland, which is also a major driver of strong exports. This export performance has fed into the recovery in Ireland’s Current Account Balance.

Irish Debt Levels The debt levels of the State will remain in focus as we move to a peak debt number by 2012. While the national debt is high, it is not insurmountable for a country with a track record of reducing debt. As can be seen from the late 1980’s where Ireland ran large primary surpluses to reduce the level of national debt.

‘The economic situation in Ireland remains challenging; however a timid recovery is underway supported by strong exports’

4

Recent decreases in interest rates that have been applied to the Irish funding from the EFSF will mean national debt levels will peak at lower levels than previously forecast. A recent ESRI report (Using higher growth rates than we and the ESRI predict), estimates the national debt will peak in 2012 at 112% of GDP, dropping to 106% by 2015. This lower national debt level and smaller deficits means the adjustments facing the Government will be slightly less onerous in coming budgets, despite the weaker economic conditions now faced by Europe and the US. Budget Adjustments - Budget 2012 & 2013 The level of austerity undertaken by the Irish Government remains significantly larger than other European member states. The Irish Government has already pushed through measures totalling €22.7bn between spending cuts, tax increases and other measures, equivalent to 14.4% of 2011 GDP.

For 2012, the Government is required to introduce fiscal consolidation measures of at least €3.6bn. In addition, it is required to deliver a general government deficit that is no larger than 8.6% of 2012 GDP. The Minister for Finance has stated the adjustment in 2012 will be €3.8bn, through a mixture of taxation and spending cuts, but weighed more towards spending cuts. The aim for a higher adjustment is due to fact the weaker economic outlook and lower domestic growth numbers will mean hitting the agreed deficit target of 8.6% of GDP will become more difficult with an adjustment of only just €3.6bn. Conclusion In conclusion, debt levels within the Irish economy remain high and consumer confidence remains weak. Despite this, once the numbers are examined, the debt levels are manageable and in the case of the consumer, being dealt with and reduced. The Government is also taking action on the public side in reducing deficit levels by the agreed target dates. This adjustment is impacting on consumer spend, in particular on the discretionary side. In short, growth will remain weak for the year ahead with unemployment remaining at high levels, but the economy is beginning to turn and the prospects for 2013 onwards look better than even in June of this year. Helped by interest rate reductions and expected reductions in ECB interest rates, offsetting the weaker growth environment within our major trading partners in 2012. A stabilisation of the European situation is a necessary for Ireland to continue to recover and maintain weak, but positive growth next year in GNP and GDP terms. We remain positive that European political leaders will do what is required to stabilise the situation in coming weeks. Economic context written by Oliver Gilvarry, ACMA.

5

Main findings

Overview of remuneration packages and the career ladder The 2011 CIMA survey reveals that members in Ireland are earning on average €80,788 in basic salary, plus €6,873 in bonus payments (9% of basic salary). 63% are expecting a bonus in 2011, and among those, the average anticipated payment is €10,884. The survey shows that average annual salary tends to increase with experience, and there are significant changes at ten to 19 years and again at 20+ years of experience. There is a significant increase in basic salary of 19% for those with ten to 19 years of post-qualified experience, and another substantial increase of 29% at 20+ years of experience. Looking at the post-qualification period as a whole, the average basic salary almost doubles (a rise of €57,123) by the time 20+ years’ experience is reached. The average bonus payment increases dramatically by 67% when the CIMA member achieves experience of six to nine years, after which the proportion tends to increase less markedly. Figure 2: Annual remuneration by number of years’ relevant experience

There is evidence that the average basic salary in Ireland has been falling year on year since 2009. The average basic salary was €84,770 in 2009, falling to €83,284 in 2010 and €80,788 in 2011. With 59% anticipating a salary reduction or salary freeze over the next 12 months, the basic salary may not rise substantially, if at all, in 2012.

In addition to basic salary, CIMA members receive a range of benefits, by far the most common being: • pension • contribution to/payment of CIMA fees

€80,788€58,891 €67,418 €75,824

€90,161€116,014

€87,661

€62,787€71,344

€82,395

€99,374

€125,238

Ireland total <3 years 4-5 years 6-9 years 10-19 years 20+ years

Basic salary Bonus Total Lowest base: 20+ Years, (48)

‘The level of experience a member has is one of the most important influences on the level of remuneration.’

6

• bonus (as part of the salary package). As expected, since seniority and level of experience are both closely associated with age, average basic salary and bonus tend to rise with age. However, the largest increments in salary are observed when a CIMA member reaches 31–35 years (29%), followed by 41–50 years (23%). The average bonus payment increases by 96% at 31–35 years and tends to decrease by 44% when a member reaches 51 years.

Figure 3: Annual remuneration by age

Salary varies considerably by region CIMA members working in Dublin city and/or Leinster province are earning respectively 4% and 3% more than the average Irish salary. Significantly lower total salaries are reported for those in the two other provinces − Connacht (€80,506) and Munster (€82,073). By city, those in Cork receive on average 35% less in bonus payments, 9% less in basic salary and 11% less in total salary than those in Ireland as a whole. A higher cost of living and a focus on the high-earning industries (banking and financial services) in Dublin are likely to be reasons for the higher than average remuneration packages there.

€80,788€54,551

€68,092 €77,533€94,665

€111,665

€87,661

€57,645

€74,161€84,487

€104,042€116,913

Ireland total < 31 years 31-35 years 36-40 years 41-50 years 51+ years

Basic salary Bonus Total Lowest base: 51+ years , (35)

7

Figure 4: Annual remuneration by province and major city

Industry sector has some impact on remuneration, including bonus levels. Compared to the average Irish salary package of €87,661, CIMA members working in the banking sector earn 21% more, followed distantly by those in financial services who earn 6% more. Perhaps surprisingly, with an average salary package of €87,319, the public sector ranks ahead of the retail and consumer goods (€85,328) and ICT, technology and telecoms (€84,230) sectors. However, bonus payments to CIMA members in the public sector are rare − only 3% expect to receive one in 2011 and among those the bonus will be less than one percent of salary and equivalent to €388.

ConnachtSalary: €74,165Bonus: €6,341Total:€80,506

MunsterSalary:€75,508Bonus: €6,565Total: €82,073

LeinsterSalary:€82,996Bonus: €7,015Total:€90,012

Galway*Salary:€72,361Bonus: €7,478Total:€79,839

CorkSalary:€73,206Bonus: €4,466Total: €77,672

DublinSalary:€83,863Bonus: €7,210Total: €91,073

*Caution: Low base, under 30.

8

Figure 5: Annual remuneration by sector

Total average remuneration appears to vary according to the size of business. Large businesses pay the most (€90,702), followed by micro and small businesses (€84,098). Perhaps surprisingly, micro and small businesses are paying relatively more on average in basic salary than medium-sized businesses, although the bonus paid as a proportion of basic salary is lower (4%) than in medium-sized businesses (7%). Bonus as proportion of basic salary is highest among large businesses (10%).

Figure 6: Annual remuneration by business size

€80,788

€97,139

€84,106

€80,291

€79,709

€87,306

€76,857

€76,627

€87,661

€105,784

€93,190

€89,081

€87,541

€87,319

€85,328

€84,230

Ireland total

Banking*

Financial services

Manufacturing and engineering

Healthcare and pharma

Public sector*

Retail and consumer goods

ICT, technology and telecoms

Basic salary Bonus Total *Caution: Low base, under 30.Lowest base: Banking, (27)

€80,788 €81,134 €70,881 €82,478

€87,661 €84,098€76,195

€90,702

Ireland total Micro & small Medium Large

Basic salary Bonus Total Lowest base: Medium, (51)

‘Compared to the average Irish

salary package, CIMA members in the banking sector

earn 21% more, followed by those

in financial services who earn

6% more.’

9

Those currently working in the role of accountant typically earn €55,265 per annum in total remuneration, whereas finance/business analysts and management accountants earn significantly more at around €63,000–€66,000. Those in a managerial finance position typically earn over €80,000, while those in very senior finance roles earn on average almost €127,000. However, CIMA members in equivalent non-finance roles tend to earn substantially more per annum: non-finance managers typically earn almost €94,000, which is €11,000 more than the earnings of finance managers. Furthermore, very senior roles (excluding CEO) attract over €143,000, which is €16,000 more than the earnings of senior heads of finance departments. Job roles paying higher average basic salaries also tend to pay bonuses at a higher proportion of basic salary, in comparison to other roles. Figure 7: Mean average salary packages − by key job roles

Job role Base Basic salary Bonus Total

package**

Finance role Management accountant 67 €60,347 €3,041 €63,388

Accountant 46 €52,652 €2,613 €55,264

Finance/business analyst 39 €61,410 €4,198 €65,608

Finance manager 68 €77,087 €5,666 €82,753

Financial controller 58 €80,130 €6,244 €86,374

Financial director/head/ chief/VP of accounting/finance 50 €113,872 €12,943 €126,815

Non-finance role Manager 33 €85,657 €8,311 €93,968

Director/VP/COO/head/partner (excluding CEO)* 27 €124,750 €18,324 €143,074

*Caution: low base, under 30. **Figures may not sum due to rounding Satisfaction with current pay and conditions After a substantial decline of 11 percentage points between 2009 and 2010, overall satisfaction with current salary in 2011 has somewhat stabilised: 70% are now satisfied with their current salary.

10

Figure 8: Satisfaction with salary – trend

Satisfaction with the benefits package also decreased between 2009 and 2010, although to a lesser degree than satisfaction with salary. Again, the figure has stabilised in 2011 and 76% are now satisfied with the additional benefits they receive.

Figure 9: Satisfaction with benefits – trend

80%71% 70%

2009 2010 2011

Base: 2009 (436), 2010 (426), 2011 (425)

84%75% 76%

2009 2010 2011

Base: 2009 (436), 2010 (426), 2011 (425)

11

Expectations for future pay and conditions

The outlook towards the year ahead is positive, relative to the picture seen in 2009 immediately following the recession. This might be driven in part by the EU/IMF bailout package of November 2010, which may have returned some vibrancy to the economy. In 2011, lower proportions now anticipate hardships associated with recession, such as salary freezes (41%, down from 80%), budget cuts (39%, down from 71%), job cuts (32%, down from 59%), a recruitment freeze (32%, down from 76%) and cuts in funding for staff training (22%, down from 52%).1

Despite these significant improvements, the Irish economy remains vulnerable, particularly if further economic shocks were to materialise, and members in 2011 remain cautious about the year ahead. The proportions expecting cuts and freezes in jobs, salaries and budgets are larger than the proportions expecting increases in those areas. One-quarter (26%) anticipate an increase in the overall profitability of the business in which they work, while a similar proportion (27%) anticipate a fall in overall profitability (lower than the 62% recorded in 2009). Also, those anticipating more money being available for investment (14%) over the next 12 months are fewer than those expecting a reduction (25%). However, merger and acquisition activity is expected to increase overall, with 21% anticipating increased activity against 5% expecting less. A higher proportion of members are anticipating a greater focus on regulatory issues over the next 12 months (32% in 2011, up from 17% in 2009). This is one of the main impacts of recession, particularly in the banking and financial sectors of the economy, where the proportions of those anticipating an increase in focus rise to 75% and 55% respectively. The public sector is also being affected, with 55% of members anticipating a greater focus on regulatory issues. Overall, it seems that Ireland’s businesses will be under pressure over the next 12 months, although the picture has vastly improved since 2009.

1 Comparisons with 2009 should be read with some caution as figures for 2011 were weighted by membership level, whereas figures for 2009 were not

‘The outlook towards the year ahead is positive, relative to the picture seen in 2009. Lower proportions now anticipate hardships associated with recession, but the economy remains vulnerable.’

12

Reduced expenditure and headcount

Reduced performance, increased caution

Increased expenditure on staffing

Increased performance, more investment

Base: 2009 (436); 2011 (425) *Item not asked in 2009.

41%

39%

32%

32%

22%

16%

80%

71%

59%

76%

52%

Salary freezes

Budget cuts

Job cuts

Recruitment freeze

Cuts in funding for staff training

Salary decreases*

2011 2009

48%

32%

27%

25%

5%

3%

40%

17%

62%

41%

8%

9%

Business process/policy changes

Greater focus on regulatory issues

Fall in the overall profitability of business

Less money available for future investment

Restricted mergers/acquisitions

Less outsourcing

2011 2009

21%

20%

12%

Increase in staff recruitment*

Salary increases*

Increased spend on staff training*

2011

26%

21%

20%

14%

13%

13%

Increase in the overall profitability of business*

Increased mergers/acquisitions

Increase in outsourcing

More money available for future investment*

2011 2009

Figure 10: Expectations for the business environment – trend

13

The outlook in terms of personal salary increase is optimistic for almost one-third (30%) of CIMA members, compared to 20% expecting salary increases across the board in the organisation in which they work. However, over two-fifths (44%) personally expect their own salary to be frozen, and one in seven are looking at their salary being reduced at an average rate of 6.4%, while just under one in ten are facing the prospect of redundancy over the next 12 months.

Figure 11: Personal expectations for salary and job security

Among the one-third of members anticipating an increase in salary, most expect an increase of 1% to 4%, one-quarter (23%) anticipate a salary increase in the range of 4% to 9%, while just over one in ten expect a large increase of over 9%. It is clear from these figures that salary increases for CIMA members are most likely to be significantly above the forecasted rate of wage inflation (0.75%), and for many will not be out-stripped by the CPI (currently estimated at 2.5% and 1.0% for 2011 and 2012 respectively).

44%

30%

15%

8%

2%

14%

Salary freeze Salary increase Salary reduction

Redundancy Shorter working week

None of these

Base: (425)

‘Salary increases for CIMA members are most likely to be significantly above the forecasted rate of wage inflation, and many will not be out-stripped by the CPI.’

14

Figure 12: Expectations for increase in personal salary

The CIMA survey shows that in 2011 over one-half (54%) of members are working 41–50 hours per week, while another 25% work a standard 35–40 hours per week. Relatively few members (17%) are working more than 50 hours per week. There has been a negligible change in the pattern of working hours since 2009.

Figure 13: Hours worked in a typical week − trend

Three in five expect that their working hours will remain the same over the coming 12 months; however, one-third anticipate an increase in working hours, primarily due to taking on more responsibility (72%) or a change in job role (40%).

5%

61%

13%10%

7%2% 1% 0% 1%

Less than 1%

1% -3.9%

4% -5.9%

6% -8.9%

9% -10.9%

11% -13.9%

14% -16.9%

17% -19.9%

20% or more

Base: All those expecting a salary increase over the next 12 months (128)

Mean average increase expected: 4.26%

7%

25%

51%

17%

4%

26%

54%

15%

1%4%

25%

54%

16%

1%

Up to 35 hours 35 - 40 hours 41 - 50 hours 51 -60 hours* More than 60 hours

2009 2010 2011

Base: 2009 (436), 2010 (426), 2011 (425)*2009 figure is for 51+ hours

15

Figure 14: Expectations for working hours and reasons for any increase

Improving employability and opportunities

The vast majority of members in Ireland perceive the CIMA qualification to enable employment internationally and to create career opportunities more generally. Similarly, there is a high level of agreement that the qualification enables movement across all areas of the business.

Figure 15: Attitudes towards the CIMA qualification

Staying the same61% Increasing

35%

Decreasing4%

Base (425)

72%

54%

40%

38%

25%

24%

Taken on more responsibility/more pressure

Understaffing/lack of resource

My role has changed

Current financial climate

Company growth

Company culture

Base: All those expecting an increase in working outside normal hours (148)

88%

88%

82%

Strengthens your ability to move internationally with your career

Creates career opportunities for you

Strengthens your ability to move across all areas of the business

Agree/Strongly agree

Base: (425)

16

Two-fifths of CIMA members are considering alternative job opportunities within the next two years, including one-quarter planning to move job within six months. Of those seeking change, almost all (84%) are opting for a job within Ireland, while the remaining minority (16%) are seeking employment overseas. Among those seeking employment overseas, English-speaking destinations are preferred, with the USA being the most popular, followed by the UK, Canada and Australia.

Figure 16: Planned migration destinations

Attracting candidates and retaining employees The survey indicates that immediately following the recession, members were reluctant to seek new employment in an insecure and restricted marketplace. However, 2010 saw a substantial rise in the proportion planning to move job to just over two-fifths, and this figure has remained fairly stable in 2011; possibly an indication of improved economic conditions. Meanwhile, the proportion planning to relocate to another country within two years has remained comparatively stable. The key reasons for seeking new employment are a new career opportunity (55%) and/or improved salary (51%). The majority will seek employment outside of their existing employer, with only 12% seeking an internal transfer.

Base: All those planning to move to another country (28)*Caution: Low base, under 30

Canada 29%

USA 60%

UAE 21%

Australia 28%

UK 48%

17

Figure 17: Proportion planning to move job, to emigrate – trend

Seeking better employment opportunities has emerged as a primary motivator for relocating abroad − it was mentioned by three-quarters of those intending to emigrate. This is followed by a new career opportunity, experiencing a different culture and improved salary. It is clear that emigration is strongly motivated by the prospect of improving one’s career and earning potential.

32%

14%

44%

18%

42%

16%

Planning to move job within 2 years Planning to move to another country

2009 2010 2011

Base: 2009 (436), 2010 (426), 2011 (425) Base: Those planning to move job within 2 years, 2009 (139), 2010 (187), 2011 (176)

‘Seeking better employment opportunities has emerged as a primary motivator for relocating abroad − it was mentioned by three-quarters of those intending to emigrate.’

18

Figure 18: Reasons for migrating

CIMA members in Ireland receive a range of benefits in addition to their basic salary; most commonly membership of a company pension scheme (79%), contribution to/payment of CIMA fees (72%), and a bonus as part of the salary package (58%). Just over one-half receive membership of a company healthcare scheme. The benefits package is an important part of remuneration for CIMA members − 13 of 20 benefits score 3 or more out of 5 on our importance scale, but it is clear that some types of benefits are generally valued much more highly than others. The most important benefits (as rated by members) are also the most widely received. However, larger gaps remain between the relative importance of benefits and their provision to members for life assurance, flexible hours, working from home and extra holidays.

76%

64%

59%

58%

52%

42%

38%

21%

17%

10%

7%

7%

Better employment opportunities

New career opportunity

Experience a different culture

Improved salary

Improved quality of life

Stronger economy

Work promotion

Improved employment conditions

Internal company transfer

Take time out/travel

Friends and family

To learn a new language

Base: Those planning to move to another country(28)* *Caution: Low base, under 30

19

Figure 19: Additional benefits received versus importance

In terms of skill sets that CIMA members wish to develop over the coming 12 months, there has been little change since 2010. Strategic planning and implementation, followed closely by leadership and personal development, are the most desired skill sets that CIMA members wish to develop over the coming 12 months. Various other managerial skills are each desired by around one-third of members − skills for developing others, persuading and influencing, and communication skills. Moreover, all of the top nine skill sets cited are very important at the mid-management and director levels; technical skills are less in demand by qualified members.

79%

72%

58%53%

43%

29% 27% 26% 25% 25% 23% 21%16%

13% 11%

3% 2% 2% 1%

4.7

3.8

4.3 4.2

3.2

3.8 3.8

3.1

3.6

2.7

3.2

3.7

3.2

2.5

2.6

2.1

2.7

3.0

2.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

0%

10%

20%

30%

40%

50%

60%

70%

80% Received Importance (mean average)

Lowest base (all answering): Product/service discounts (394)

20

Figure 20: Skill sets CIMA members wish to develop – trend

Special report – the strength of multinationals in Ireland

International trade and foreign direct investment are important to the Irish economy, and a large proportion of Ireland’s CIMA members are employed within foreign-owned multinational businesses (49%). Below we outline the key differences between Irish-owned and internationally-owned businesses in terms of anticipated remuneration and job security for the next 12 months. It is important to note that as there are differences in business profiles by size and sector, the findings will to an extent reflect those profile differences. In particular, Irish-owned organisations have a large presence in the retail, consumer, FMCG, food and drink sectors, followed by the public sector and financial services. Multinationals in Ireland are more likely to be focused on financial services, healthcare and pharma, and the ICT, technology and telecoms sectors.

40%

38%

37%

35%

35%

33%

25%

24%

21%

20%

19%

19%

17%

15%

11%

11%

34%

43%

40%

30%

43%

36%

28%

22%

20%

22%

19%

21%

16%

18%

12%

13%

Strategic planning and implementation

Leadership

Personal development (e.g. career planning, time management)

Skills for developing others (e.g. assessing performance)

Persuading and influencing

Communication (e.g. negotiating, writing, presenting)

Project management

Decision making

Risk management

Reporting and analysis

IT software (e.g. MS Excel, Word, PowerPoint, etc.)

Team building

Problem solving

Time management

Internal audit and control

Budgeting

2011 2010 Base: 2011 (425), 20

21

Figure 21: Proportions of CIMA members in key industry sectors – by ownership

Irish International

Retail, consumer, FMCG, food and drink 17% 8%

Public sector 13% 0%

Financial services 11% 26%

Manufacturing and engineering* 8% 11%

Healthcare and pharma 4% 17%

ICT, technology and telecoms 5% 17% Base 214 211

*Statistically similar proportions In terms of outlook for the businesses in which they work, members in Irish-owned businesses are more pessimistic about a number of factors. Most notably, over the next 12 months, one-half are anticipating salary freezes in the business in which they work, and a similar proportion are expecting budget cuts, compared to one-third of those in international organisations. Only 8% of members in Irish-owned businesses anticipate increased funds for investment, compared to 20% within multinationals.

International businesses are unlikely to come away unscathed; although they are much less likely to see salary decreases, notable proportions of members are expecting a recruitment freeze and/or job cuts.

Figure 22: Differences in expectations for the next 12 months − by ownership

Irish International

Salary freezes 51% 30%

Budget cuts 46% 32%

Recruitment freeze 38% 25%

Job cuts* 37% 28%

Less money available for future investment 34% 17%

Salary decreases 28% 4%

Increase in overall profitability of business 22% 30%

Increased merger/acquisition activity 17% 25%

Increase in staff recruitment 15% 27%

Increase in outsourcing 14% 27%

Salary increases 12% 29%

More money available for future investment 8% 20% Base 214 211

*A statistically insignificant, yet notable difference.

22

On average, members are receiving about the same in basic salary, regardless of whether they work in Irish-owned or internationally-owned businesses. Although members working in Irish-owned businesses are less likely to expect a salary increase over the next 12 months, any increase is likely to be proportionately larger (5.3% versus 3.8% for internationally-owned businesses). Furthermore, members working in Irish-owned businesses are significantly more likely than their peers in internationally-owned businesses to anticipate a salary freeze or reduction in salary over the next 12 months. The salary reduction among those in Irish businesses is expected to be 6.2% on average.

Figure 23: Expectations for personal salary and job security − by ownership

Irish International Salary increase 19% 42% Salary freeze 52% 35% Salary reduction 26% 3% Redundancy 7% 9% Shorter working week 1% 2% Base 214 211

NB Bold type denotes a statistically significant difference.

Although those in Irish-owned businesses are much less likely to expect a bonus in 2011, the value of any bonus received is likely to be similar on average to that received by members in internationally-owned businesses.

Figure 24: Current and expected salary and bonus − by ownership

Irish International

Mean basic salary €79,071 €82,570

Satisfied with salary 67% 74%

Expect to receive a salary increase 19% 42% Mean expected salary increase among those expecting one 5.3% 3.8% Expect to receive a bonus 43% 84% Value of bonus among those expecting one €10,756 €10,950

Satisfied with benefits package 70% 82%

Base 214 211

NB Bold type denotes a statistically significant difference.

23

While the majority of members are satisfied with their benefits package, regardless of business ownership, the level of satisfaction is lower among those in Irish-owned businesses. This may be due to the significantly lower likelihood of the latter segment receiving a range of additional benefits − particularly healthcare, bonus as part of the remuneration contract and flexible working. Furthermore, members in internationally-owned businesses are more likely to view the benefits package as a key motivator in employment (16% versus 6%), while those in Irish-owned businesses are more likely to value job security (40% versus 30%). Figure 25: Selected additional benefits received − by ownership

Irish International Pension 69% 89% Contribution to/payment of CIMA fees 66% 79% Bonus (as part of package) 38% 79% Healthcare 25% 81% Flexible hours 22% 32% Working from home 18% 32% Company car/allowance 17% 35% Life assurance 15% 43% Share/share options 10% 37% Product/service discounts 10% 17% Base 214 211

In summary, the CIMA survey shows that over the next 12 months internationally-owned businesses are likely to have a greater ability to sustain generous benefits packages, maintain or increase salaries and headcount, and withstand the continued pressure from the economic environment. Meanwhile, Irish-owned businesses are likely to try to limit redundancies by curbing increases in staffing costs. However, where salaries are increased for CIMA members, they will be on average proportionately larger in Irish-owned businesses than in internationally-owned businesses.

24

One word to describe...management accounting

Members were asked to use one word to describe what management accounting means to them personally. The words below show the most popular responses, with the size of font denoting frequency of mention.

Figure 26: Words used to describe…management accounting

Interesting Flexibility

Strategic Useful

Essential Decision-making

Information Business

Vital

Diverse

Critical

Adaptable

Rewarding Dynamic

Value adding

Analysis

Informative

Challenging

Relevant

Broad Varied

25

Appendix Figure 27: Table of salaries and bonuses

Ireland Base Salary

(€ per annum) Bonus

(€ per annum) Total package

(€ per annum)**

Total 425 80,788 6,873 87,661

Salary tier

Lower 84 44,471 1,278 45,749

Medium 215 69,579 4,511 74,090

Higher 126 122,045 14,262 136,307

Age

< 31 years 39 54,551 3,094 57,645

31–35 years 96 68,092 6,069 74,161

36–40 years 151 77,533 6,954 84,487

41–50 years 104 94,665 9,377 104,042

51+ years 35 111,665 5,248 116,913

Gender

Male 287 87,049 8,413 95,462

Female 138 67,486 3,600 71,086

Level

Associate 389 76,350 6,281 82,630

Fellow 36 116,042 11,576 127,618

Size of organisation

Micro/small (1–50 employees) 80 81,134 2,963 84,098

Medium (50–249 employees) 51 70,881 5,314 76,195

Large (250+ employees) 294 82,478 8,225 90,702

Years of experience

Newly qualified (< 1 year)* 24 58,750 2,763 61,513

1–3 years 83 58,931 4,222 63,153

Total <3 years 107 58,891 3,896 62,787

4–5 years 52 67,418 3,926 71,344

6–9 years 67 75,824 6,571 82,395

10–19 years 151 90,161 9,213 99,374

20+ years 48 116,014 9,224 125,238

Division

Finance 310 75,261 6,098 81,359

Operations 52 93,634 10,048 103,682

26

Ireland Base Salary

(€ per annum) Bonus

(€ per annum) Total package

(€ per annum)**

Total 425 80,788 6,873 87,661

Industry sector

Banking* 27 97,139 8,645 105,784

Financial services 78 84,106 9,084 93,190

Healthcare and pharma 44 79,709 7,832 87,541

ICT, technology and telecoms 46 76,627 7,603 84,230

Manufacturing and engineering 39 80,291 8,790 89,081

Public sector* 29 87,306 13 87,319

Retail and consumer goods 54 76,857 8,470 85,328

Province

Leinster 304 82,996 7,015 90,012

Munster 92 75,508 6,565 82,073

Connacht* 29 74,165 6,341 80,506

City

Galway 245 83,863 7,210 91,073

Cork 49 73,206 4,466 77,672

Dublin* 18 72,361 7,478 79,839

Job role

Finance manager 68 77,087 5,666 82,753

Manager (other than of

finance) 33 85,657 8,311 93,968

Financial controller 58 80,130 6,244 86,374

Management accountant 67 60,347 3,041 63,388

Accountant 46 52,652 2,613 55,264

Finance or business analyst 39 61,410 4,198 65,608

Financial director/head/ chief/VP of accounting/finance 50 113,872 12,943 126,815

Non-finance role Manager 33 85,657 8,311 93,968 Director/VP/COO/head/partner (excluding CEO)* 27 124,750 18,324 143,074

*Caution: Low base, under 30 **Figures may not sum due to rounding

27

Technical information Survey responses were collected by CIMA among active members between 09 June and 04 July 2011, via an online survey. The data was analysed and reported by Spotlight Market Research & Editing.

Just over 21,000 CIMA members were selected and invited to participate in the international study which covers 14 markets. Within the study period 2,367 responded internationally, including 425 from Ireland.

The response data presented in this report has been weighted to reflect the profile of the CIMA membership by market. All base numbers quoted in Figures report the lowest unweighted base i.e. the number of responses.

Further information

For further information on technical matters relating to this survey, contact yourvoice@cimaglobal.com

For further country specific analysis and reports, visit CIMA MY JOBS at

http://myjobs.cimaglobal.com

Acknowledgements

This research was conducted by CIMA in conjunction with Spotlight Market Research & Editing. The Chartered Institute of Management Accountants is a Market Research Society Company Partner. Both CIMA and Spotlight abide by the Market Research Society’s Code of Conduct and the Data Protection Act.

36

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