Transcription
National CFA CharterholderCompensation Study 201511 August 2015CFA Societies Canada1
ContentsCFA Societies CanadaSummary Respondent Profile3Summary Compensation Measures4Summary Employment Profile12Methodology17Media Inquiries/Contact Info1822
Respondent ProfileGenderAgeCompensation 3517%83%Top Designations35%35-3920%40-4417%45-4913%50 15%MBA22%Other MastersAverage : 296,02017%CIM7%CA6%Average Age: 39.7SocietyYears of ExperienceAtlantic2%Québec2%MontréalOttawa 100 Mn5-7 years17%8-10 ancouver11-13 yearsCFA Societies Canada19% 1 Bn- 5 Bn11% 5 Bn11%14-16 years17-19 years47%11%14%Employee Count10% 10020-24 years13%25 years15%9%1%12%Not applicable3%WinnipegVictoria3% 100 Mn- 1 Bn16%TorontoOkanagan1-4 yearsSelf-Managed AUMAverage : 15.1 years21%100-499500-99914%7%1000-499915%5000 Don’t know41%1%33
Compensation Measures Summary Average total compensation reported by CFA charterholders for 2014 now stands at 296,020, upfrom 232,267 in 2013, and from 214,885 reported for 2010 in the 2012 survey. Mean total compensation is significantly higher than median compensation ( 155,000), indicating asmall proportion of CFA charterholders receive very high compensation. The top 25% ofcharterholders have compensation of at least 290,000, rising to over 10 million. Total compensation varies by region, sector and position held. These details are provided in the fullreport. A few highlights include higher compensation in Calgary ( 387,987), Winnipeg ( 357,667) andOkanagan ( 370,440) than in Québec ( 149,716), Atlantic Canada ( 177,559), and Ottawa( 212,901). By position, total compensation is highest for equity PMs ( 629,037), CEO/CAO/COOs/CIOs( 581,033), and multi-asset PMs ( 503,153); and is lower for portfolio analysts ( 108,511),compliance/regulatory ( 150,047), and those in marketing and product development ( 173,055). Those with longer tenure/more senior positions derive a larger proportion of their compensationfrom commissions and sales bonuses, as well as performance bonuses and profit sharing than frombase salaries. Top benefits received include CFA Professional Membership Dues (97% - higher than the 48% whoreceive coverage for other professional associations) and various forms of insurance including health(95%), dental (94%), long-term disability (92%), life (91%), short-term disability (90%), and vision(88%). 69% receive pension benefits. Just under half (45%) say their employer pays for 100% of CEcredits, while 12% say it pays for some but not all, and 8% pay only for mandatory credits. 43% donot pay for any.CFA Societies Canada44
2010-2014 Aggregate CompensationAggregate Average Compensation across allCFA Charterholders by Year 296,020 300,000 19,744 239,215 250,000 214,885 200,000 15,069 21,209 12,792 18,010 61,299 150,000 9,270 18,076 232,267 61,925 46,720 34,161 55,373 26,935 14,529 100,000 50,000 109,026 118,919 116,23820112013 136,864 020102012 SurveyOtherCompensation as Board DirectorDeferred/multi-year incentive compensationStock AwardsPerformance BonusesBase SalaryCFA Societies Canada20142015 SurveyConsulting FeesDividends from employer company shares heldStock OptionsProfit SharingCommissions/Sales Bonuses55
2014 Aggregate CompensationAggregate Average Compensation across all CFA CharterholdersAvg. compensation among allAs Percentage ofmembersSum of CompensationFindings To create a picture of theaggregate, average compensationstructure, the adjacent tablesshow the average compensationby category for all CFAcharterholders. Thus, across allmembers, including those whoreceive each type or not, basesalaries account for 46 percent oftotal compensation, whileperformance bonuses account for21 percent. While stock awards/phantomshares and stock options representa smaller percentage of totalcompensation across all memberstogether, among the smallproportion who receive them,they represent much higheraverage values. The slides that follow showbreakdowns of total aggregateaverage compensation structuresby total professional tenure, CFASociety and occupational role.2014Base SalaryCommissions/Sales BonusesPerformance BonusesProfit SharingStock AwardsStock OptionsDeferred/multi-year incentive compensationDividends from employer company shares heldCompensation as Board DirectorConsulting FeesTotal CompensationSummary201120102014201320112010 119k 18k 61k 21k 15k 9k- 109k 15k 55k 18k 13k 9%7%25%9%6%4%-50%7%25%8%6%3%- 296k 239k 215k---- 232kAggregate Average Compensation Among RecipientsAvg. compensation amongAvg. compensation amongthose receiving each typethose receiving each typeBase SalaryCommissions/Sales BonusesPerformance BonusesProfit SharingStock AwardsStock OptionsDeferred/multi-year incentive compensationDividends from employer company shares heldCompensation as Board DirectorConsulting FeesTotal CompensationCFA Societies Canada2013 137k 116k 34k 27k 62k 47k 18k 13k 9k 6k 2k 2k 9k 7k 20k 10k 0.5k 0.5k 2k 2k201420112014201194%14%77%13%15%7%12%7% 0.5%1%95%14%77%15%16%8%- 147k 225k 82k 160k 63k 43k 90k 162k 25k 110k 126k 139k 80k 145k 118k 100k--- 296k 239k66
2014 Aggregate CompensationAggregate Average Compensation across allCFA Charterholders by Total Professional Experience 700,000 694,243 30,161 600,000 55,081 11,438 548,294 506,282 500,000 457,475 400,000 296,020 300,000 200,000 34,161 100,000 293,219 19,744 9,270 18,076 61,925 136,864 157,486 95,922 15,982 33,695 4,818 76,566 100,274 5 years5-9 years 216,713 9,542 20,089 67,976 54,520 16,585 29,095 121,335 145,823 54,571 22,155 19,650 33,355 53,320 21,150 21,584 53,259 89,484 117,943 56,994 43,402 175,978 173,446 24,785 23,209 16,425 29,560 86,744 75,913 75,102 145,040 227,529 219,515 192,743 0Total10-14 years 15-19 years 20-24 years 25-29 years 30-34 years 35 yearsProfessional Experience (years)OtherConsulting FeesCompensation as Board DirectorDividends from employer company shares heldDeferred/multi-year incentive compensationStock OptionsStock AwardsProfit SharingPerformance BonusesCommissions/Sales BonusesBase SalaryCFA Societies CanadaSummary77
2014 Aggregate CompensationAggregate Average Compensation across allCFA Charterholders by CFA Society 400,000 370,440 350,000 15,400 300,000 250,000 200,000 326,480 357,667 77,523 35,463 300,280 296,020 17,964 19,744 9,270 18,076 50,588 47,830 261,370 16,512 16,190 30,315 167,733 61,925 89,982 150,000 387,987 37,839 226,759 64,093 21,732 80,916 39,729 34,161 35,650 87,267 44,137 43,864 0 288,395 11,192 11,357 21,402 8,755 212,901 71,383 72,252 8,065 26,211 15,188 25,028 34,899 97,272 14,352 42,463 14,493 100,000 50,000 287,400 41,264 170,340 136,864 129,210 137,091 134,865 91,600TotalVictoriaVancouverOkanagan 105,757 126,297SaskWinniCalgary Edmonton atchewan -peg 177,559 149,716 16,426 10,296 131,201 118,587 111,926Toronto Ottawa Montréal Québec AtlanticConsulting FeesCompensation as Board DirectorDividends from employer company shares heldDeferred/multi-year incentive compensationStock OptionsStock AwardsProfit SharingPerformance BonusesCommissions/Sales BonusesBase SalarySummary 18,634 169,972 130,866OtherCFA Societies Canada 40,17988
2014 Aggregate CompensationAggregate Average Compensation across allCFA Charterholders by Job Category 700,000 629,037 600,000 105,006 503,153 500,000 113,883 400,000 300,000 200,000 70,805 369,659 296,020 296,036 19,744 18,076 61,925 34,161 27,055 69,194 35,960 28,714 33,061 406,425 340,527 149,826 188,852 26,818 30,260 35,890 24,543 108,322 142,626 139,911 209,737 100,000 136,864 144,822 115,003 250,609 44,861 44,744 12,211 0 170,940 250,641 187,623 150,447 173,257TotalFinan. orInvest.Invest. Adv./ Counsel./BrokerPrivate Client 20,513 i-asset)PortfolioMan.(Other)Manager ofManagersPortfolioAnalystRiskManagement 15,641 34,544 51,564 181,745 83,737PortfolioMan.(Equity) 207,114 158,098 108,511 47,240 0 205,609 113,193 94,980Buy-SideR.A.(Equity)Buy-SideR.A.(Other) 173,055 39,877 128,245 104,508Invest.Strateg./EconomistMarket. andProductDevelop.Findings: In the asset management world, Equity PMsearn more than fixed income or multi-asset.OtherConsulting FeesCompensation as Board DirectorDividends from employer company shares heldDeferred/multi-year incentive compensationStock optionsStock awards/phantom sharesProfit sharing bonuses Portfolio Analysts are lowest in totalcompensation.Performance bonusesCommissions/sales bonusesCFA Societies CanadaSummaryBase salary99
2014 Aggregate CompensationAggregate Average Compensation across allCFA Charterholders by Job Category 581,033 600,000 65,833 500,000 22,318 22,421 20,687 400,000 83,853 352,765 325,182 300,000 296,020 19,744 18,076 200,000 61,92571078 291,228 245,5181894210141 9,96784744 150,074 34,161 105,790 95,247 23,455 40,373 204,302 192,506 25,797 45,568 27,217 110,702 133,560 211,491131444 124,997 115,998 113,820Sell-SideSecuritiesAnalystTrading& Sales 56,406 13,708 30,360 204,679 209,3044 48,332 34,216 146,027 138,724 150,223 194,508 178,296 27,166 247,067 100,000 136,864 107,733 26,227 17,073 14,187 115,952 0TotalRelationship Compliance/Management RegulatoryFindings: C-Suite level executives reignsupreme. Relationship Management also hashigher compensation.CFA Societies CanadaSummaryCorp. Fin./ Accountant/ Consultant/Underwriter/ Auditor/Invest.M&AOtherConsult.OtherCompensation as Board DirectorDeferred/multi-year incentive compensationStock awards/phantom sharesPerformance bonusesBase salaryCFOCEO/ CAO/ Corp./Comm.COO/ CIO/BankingPres.TreasuryOtherConsulting FeesDividends from employer company shares heldStock optionsProfit sharing bonusesCommissions/sales bonuses1010
2014 Aggregate CompensationAggregate Average Compensation across allCFA Charterholders by Designations Held 400,000 250,000 200,000 150,000 367,339 30,594 43,694 13,548 31,743 275,945 16,577 10,998 290,442 28,387 17,871 39,496 17,270 341,604 350,000 300,000 364,775 321,716 296,020 19,744 9,270 18,076 61,925 34,161 18,694 10,174 23,004 247,095 67,203 21,744 88,094 8,694 39,077 51,878 14,086 0 292,915 20,538 18,154 122,844 36,154 27,225 149,160 133,274 138,975 303,144 295,618 8,970 10,237 33,642 60,672 24,144 20,815 18,519 63,521 135,014 34,844 28,471 24,802 100,000 50,000 80,334 63,680 54,285 27,335 18,072 16,942 136,864Total 145,785 119,879NoAnyDesig.Desig.Findings: Those with the top four industrydesignations or degrees earn more thanthose who do not hold the designations. Those with any designation earn morethan those with no designations.CFA Societies CanadaSummaryMBANoMBA 109,872CIMNo CIMOtherCompensation as Board DirectorDeferred/multi-year incentive compensationStock AwardsPerformance BonusesBase Salary 165,204CA 134,934No CA 138,826 102,093CFPNo CFPConsulting FeesDividends from employer company shares heldStock OptionsProfit SharingCommissions/Sales Bonuses1111
Employment SummarySummary of Key Findings: CFA charterholders work for a wide range of employers including asset/fund management firms(27%), investment counselling (11%), sell-side brokerages (7%), pension management (7%),investment banking (5%), insurance (5%), financial services consulting (5%), and commercialbanking (5%). A quarter (26%) work for one of the 6 largest banks, 4% for one of the 3 largest insurance firms,and 6% for one of the 10 largest pension plans – the remaining 64% work for other organizations.These are unchanged from 2012. The average employee count is 2,834, up from 2,765 in 2012. A wide range of positions are held, including Investment counsellor/private client (7%), corporatefinance/underwriter/M&A (7%), risk management (6%), portfolio manager (equity) (6%), portfoliomanager (other) (6%), sell-side securities analyst (5%) and CEO/CAO/COO/CIO/President (4%). Top roles performed include financial analysis (65%), client relationship management (52%),portfolio management/stock selection (45%), strategy development and planning (40%), generalmanagement/admin. (37%), performance management (34%) and internal control and riskmanagement (31%). Most of these roles have declined slightly as lower incidence roles havebecome more prevalent, including trading (26% vs. 20%), compliance/regulatory oversight (24%vs. 14%), corporate finance (22% vs. 14%), senior management (20% vs. 12%), and HR (15% vs.9%). More than half (53%) of CFA charterholders say they personally manage assets for theiremployers, managing an average of 4.2 billion, up from 3.5 billion in 2012. Top designations held in addition to the CFA charter include MBA (22%, down slightly from 26%),other Masters degrees (17%), CIM (7%), CA (6%), CFP (5%), FRM (5%) and FCSI (4%). One third(34%) hold no other designations.CFA Societies Canada1212
EmployerFindings One of the 6 largestchartered banks inCanada26%25% One of the 3 largestinsurance firms inCanadaOne of the 10 largestpension plans inCanadaNone of the above4%Key Differences4%2015 20126% 7%64% 64% CFA Societies CanadaA quarter of CFA charterholders work for one of the 6 largestchartered banks in Canada (26%) while only 4 percent work forone of the 3 largest insurance firms and 6 percent for one ofthe 10 largest pension plans.Nearly two-thirds (64%) work for none of these types oforganizations.Those more likely to say one of the 6 largest chartered banksinclude those in Toronto (34%), English speakers (27%), thosewith 5,000 employees (53%), those with 20B in companyAUM (43%) and those with 51 hours a week (32%).Those more likely to say one of the 3 largest insurancecompanies include those in Winnipeg (18%) or Toronto (6%)and those with 5,000 employees (9%).Those more likely to say one of the 10 largest pension plans inCanada include those in Victoria (50%), Edmonton (25%) orMontréal (13%), French speakers (12%), those under the age of30 (10%) and those with 100-499 (13%), 500-999 (29%) or1,000-4,999 (11%) employees.Those more likely to say they work in none of the aboveinclude those in Vancouver (76%), Calgary (81%),Saskatchewan (89%), Winnipeg (76%), Ottawa (86%), Québec(80%) or Atlantic Canada (80%), those with fewer than 100(96%), 100-499 (76%) or 1,000-4,999 (79%) employees andthose operating only within their own province (90%).1313
ResponsibilitiesFinancial Analysis65%65%Client relation. %13%8%10%7%10%Portfolio Manage./Stock select./analysisStrategy Development and PlanningGeneral Management, AdminPerformance MeasurementInternal Control and Risk Manage.New Business/Product DevelopmentBudgeting/ ForecastingFinancial ReportingTradingCompliance/Regulatory OversightCorporate Finance (Financing, M&A)Senior managementHuman ResourcesOther Business Advisory / ConsultingTaxationInformation TechnologyAudit (Internal Government)Management/Cost AccountingOtherCFA Societies Canada1%6%1%6%1%2%Findings Top activities include financial analysis (65%), client relationshipmanagement (52%), portfolio management/stockselection/analysis (45%), strategy development and planning(40%), and general management/ administration (37%).Fewer are engaged in specialist activities like taxation, (10%),information technology (10%), audit (6%) or management/costaccounting (6%).Key Differences Those in Victoria (82%) and Calgary (74%) are more likely toconduct financial analysis, while those in Vancouver (65%) andOkanagan (87%) are more likely to conduct client relationshipmanagement; those in Okanagan are also more likely to conductportfolio management/stock selection/analysis (80%) and trading(60%). Those in Calgary are more likely to conductbudgeting/forecasting (40%) and corporate finance (36%).Those earning total compensation of 300k are more likely tobe conducting client relationship management (72%), portfoliomanagement/stock selection/analysis (61%), generalmanagement/administration (47%), strategy development andplanning (47%), new business/product development (26%),trading (34%), senior management (38%), human resources(26%) and taxation (14%). Those earning a total compensation ofless than 100k are more likely to be conducting financialreporting (30%).C3. Which of the following activities do you spend at least some of your work time on?1414
DesignationsFindings22%26%MBAOther IAMasters of TaxDoctorateCBV/CAOthersNoneCFA Societies Canada 2%1%2%1%1%1%1%1%1%1%11%14% The MBA is the most frequently held designation, held by two inten CFA charterholders (22%). Other top designations includeother Master’s degrees (17%), the CIM designation (7%), the CA(6%), the CFP (5%) and the FRM (5%).One-third of CFA charterholders indicate they do not hold anyother professional designations or post-graduate degrees (34%).Key Differences2015 2012 34%36%Those more likely to have a MBA include those in Toronto (28%),English speakers (24%), those ages 40-44 (27%), 45-49 (30%), 5054 (33%) or 55 (35%), those working in retail banking (34%),those who work 51 hours or more a week (28%), those earning 300k in total compensation (30%) and those in the role ofEquity Portfolio Manager (29%).Those more likely to have an other Master’s degree include thosein Montréal (34%) or Québec (38%), those ages 35-39 (23%),those working in government finance (33%) and those in the roleof Fixed Income Portfolio Manager (29%), Risk Management(25%) or Investment Strategist/Economist (42%).Those more likely to say they have no professional designationsinclude those in Vancouver (40%), Calgary (49%) or Winnipeg(46%), those under the age of 30 (60%) or 30-34 (45%), thosewith 100k in compensation (42%) and those in the position ofRelationship Management (48%), CorporateFinance/Underwriter/Mergers & Acquisitions (41%) orCorporate/Commercial Banking (48%).C4. Which of the following professional designations and post-graduate degrees do you currently hold?1515
HoursFindings 31%27%40 or less 18%18%41-45 26%29%46-50Key Differences 23%26%51 Don'tKnow3%20152012 20152012Mean47.6 hours/week48.4 hours/weekMedian46.0 hours/week50.0 hours/weekCFA Societies CanadaCFA charterholders report working an average of 47.6 hours perweek, down significantly from 48.4 hours per week in 2012.About a quarter (23%) say that, on average, they work 51 hoursa week and a further 26 percent work 46-50 hours.Three in ten work 40 hours or less (31%).Those working longer hours include those in Toronto (48.6 hours),men over women (48.0 vs. 45.9), those under the age of 30(50.0), those working in investment banking (56.0) or sell-sidebrokerage firm (53.4), those working for the six chartered banks(49.2), those operating in the U.S. (48.5) or abroad (48.7), thosewith a total compensation of 300k (51.0), and those in the roleof Equity Portfolio Manager (49.6), Relationship Management(49.2), Sell-side Securities Analyst (53.2) orCEO/CAO/COO/CIO/President (50.0).Those working fewer hours include those in Edmonton (44.7),Winnipeg (45.8), Ottawa (45.9), Montréal (46.4) or Québec (43.7),those age 55 (45.8), those working in retail banking (45.3),insurance (43.4), pension management (45.8) or governmentfinance (42.8), those with 100K in compensation (45.5), andthose in the role of Financial Advisor/Broker/Investment Advisor(45.3), Manager of Managers (44.2), Portfolio Analyst (43.2), RiskManagement (44.1), Compliance/Regulatory (43.1),Accountant/Auditor (44.9), Consultant/Investment Consultant(44.3) or Treasury (45.6).C6. On average, how many hours per week did you work in 2014?1616
Methodology and SamplingMethodE-mail invitation to complete an online surveyRespondentsMembers of CFA Societies from across CanadaSample lists provided by each CFA SocietyNo screening or attempts to set quotas by member type were madeTimingApril 28 – May 25, 2015Median completion time of 17.4 minutesSample Sizen 2,606, with a response rate of 19.3 percentStatisticalSignificanceAt the national level, results are considered accurate to within /-1.7 percentage points, 19 times out of 20. The margin oferror for subgroups will be wider.CFA Societies Canada1717
Media Inquiries/Contact InfoFor media inquiries, please contact:For questions regarding the survey, please contact:Patricia StathiCandice SpencerCanadian Region, Relationship ManagerCFA Society Toronto120 Adelaide Street West, Suite 701Toronto, ON M5H 1T1Phone: 416.366.5755 X 235Fax: 416.366.6716Email: [email protected] Society Toronto120 Adelaide Street West, Suite 701Toronto, ON M5H 1T1Phone: 416.366.5755 X 229Fax: 416.366.6716Email: [email protected] is a registered trademark owned by CFA Institute.CFA Societies Canada1818
Average total compensation reported by CFA charterholders for 2014 now stands at 296,020, up from 232,267 in 2013, and from 214,885 reported for 2010 in the 2012 survey. Mean total compensation is significantly higher than median compensation ( 155,000), indicating a small proport
