IR pay suffers in a tough year

Distributions were slow and budgets were tight last year, leading to salary freezes for many investor relations professionals.

A large portion of private equity investor relations professionals didn't get a raise last year, according to a survey conducted by sister publication PEI Manager.

According to the 2008 Private Equity IR & Communications Compensation Survey, 38 percent of IR professionals reported no increase in salary in the last year. Twenty-five percent said they received a 1 percent to 5 percent raise, and 19 percent said they were given a 6 percent to 10 percent raise. Few reported anything higher.

Not all the news was bad – there are signs the role of the IR professional, a relatively new one in private equity, is gaining recognition for its importance within firms. Around 41 percent of those interviewed said they were eligible for partner track, and 46 percent said they participate in carry. Seven percent of those interviewed said their level of carry is in the top quartile at the firm.

Twenty-six percent of those surveyed said they were contemplating a move – with 38 percent of those who said they were looking to move citing compensation as their primary motivation.

The survey, unveiled in June at the 4th Annual PEI Investor Relations and Communications Forum in New York, polled IR professionals at buyout, venture capital, mezzanine – and distressed-focused firms, as well as funds of funds.

More detailed results are published in the July issue of PEI Manager.