Ten per cent of corporate affairs directors working for a FTSE company, typically leading teams of up to 500 people, earn a remuneration package in excess of £750,000 per annum while a further 40 per cent earn between £500,000 and £750,000, a new report has claimed.
Unsurprisingly, perhaps, those working for FTSE 100 companies are generally more highly rewarded than counterparts working for businesses listed on the FTSE 250 with long-term incentive plans, linked to share performance, an important aspect of remuneration.
Corporate affairs: redefining the role, releasing the potential, a report authored by Hannah Peech, who leads the corporate affairs practice at Odgers Berndtson, found that just 53 per cent of those surveyed sit on the executive committee. ‘For some this is a clear frustration,’ she said. ‘They believe it is of critical importance to be ‘around the table’ from an information-sharing perspective.’
Others are more sanguine, believing that their relationship with the chief executive or chief financial officer is of more importance, and that sitting on the executive committee may actually take up more time than it is worth. Overwhelmingly, however, corporate affairs directors believe it is vital that they are consulted on business strategy.
Where corporate affairs report directly into the chief executive, they are likely to have larger teams ‘signifying the importance of buy in from the top for investment into the function’. The largest teams exist in those businesses which are most heavily regulated – although this is not always the case. One FTSE 100 financial services company employed more than 500 people in communications, while another had just five. The average size is around 80, according to the report, and where the teams tend to be smaller IR sits with the chief financial officer while employee engagement is the domain of HR.
On average, corporate affairs directors spend around 18 per cent of their time with their chief executives, although some dedicate more than a third (35 per cent) to their boss. Company chairmen are also demanding time with their corporate affairs directors, who are spending as much as one in four hours with this non-executive director.