20% pay rise plus bonus: the life of a CFA

A survey of Australia’s Chartered Financial Analysts (CFAs) found that 43 per cent received a pay rise above 20 per cent from 2005 to 2006, and 86 per cent of CFAs scored a cash bonus.

Pay increases of any size were received by 83 per cent of Australian respondents to a global online survey of CFAs. Only China recorded a higher proportion of pay rises – 85 per cent – which CFA Society of Sydney president Olivia Engel said “;may be a reflection of [Australian CFAs’] high demand in the investment industry”;. Impressive as it sounds, the 86 per cent rate of bonus receipt was actually the lowest among the countries surveyed – Swiss CFAs came in top with 96 per cent getting an extra reward for their efforts during 2005-2006. Other key survey findings for Australian CFA Institute members include: • Portfolio managers earn more than research analysts with a median income of $260,000 • Sell-side research analysts (median $230,000) earn more than buy-side analysts ($180,000) • About one-third of respondents were awarded long-term incentives in 2006 – 47 per cent received restricted shares; 25 per cent received share options; and 42 per cent received other incentives, such as mandatory deferred cash, phantom shares, performance units and investment partnership payments • 45 per cent of respondents work for an investment management firm • 28 per cent work for an investment bank, commercial bank or brokerage firm • 45 per cent hold an advanced degree (MBA, Masters, Ph.D or equivalent) The survey was conducted in 11 countries, with 13,562 CFA Institute members responding out of the 75,406 who were invited to partake in the survey. Locally, 173 members responded and completed the online survey between April 30 and May 29, 2007.