Investor Relations Officers Grow Scope, Impact and Compensation

Los Angeles and Alexandria, VA - November 25, 2024 - Against the backdrop of an increasingly complex business and regulatory environment, a new survey by global organizational consulting firm Korn Ferry (NYSE: KFY) and NIRI: The Association for Investor Relations sheds light on the critical role investor relations professionals play in the success of their companies-a trend that is elevating this function.

Results show how the investor relations role is growing in scope and becoming more prominent within organizational leadership; in turn, investor relations leaders are growing more optimistic about the future of the profession. The 2024 NIRI and Korn Ferry Investor Relations Career Trends Survey Report includes data compiled from Investor Relations professionals during May-July 2024.

Key findings include:

• 87% of IR professionals are "very optimistic" or "somewhat optimistic" about the profession
• 61% say the IR function has been elevated within their company
• According to IR professionals, having a strategic mindset and the ability to manage ambiguity are the most critical skills to be successful in the profession
• Nearly 80% of respondents say they manage responsibilities in addition to IR, up from 62% in 2022; 20% indicate their role also includes competitive intelligence; another 20% say that ESG/Sustainability is within their purview

Compared with findings from Korn Ferry and NIRI's previous surveys, the 2024 report illuminates important developments in the function over time, including:

• The most held title among respondents is vice president (44%), up two percentage points from 2022 and showing a steady rise over the last five years
• 69% report to the Chief Financial Officer (CFO), up four percentage points since 2022
• 23% of respondents strive to become CFOs as their next career move, up from 18% in 2022

Compensation has also seen significant growth, driven by a notable increase in base salary.

• In 2024, the percentage of respondents earning a base salary of $276,000 or above rose to 54%, up 14% from 2022. Specifically, 15% of 2024 respondents reported earning between $351,000 and $450,000, up 7% from 2022
• While bonus as a percentage of base salary levels stayed relatively consistent from 2022 data, as base salaries rose IR professionals also received larger gross bonuses
• However, the mix of total compensation packages has shifted. The percentage of investor relations professionals receiving equity of more than 50% of base salary dropped from about 37% in 2022 to 30% in 2024

The report also highlighted challenges for the investor relations role.

• 35% of 2024 survey respondents identify as female, down from 40% in 2022, indicating a need to increase gender diversity and representation at the highest ranks of the investor relations function
• The largest number of respondents in 2024 (49%) selected growth of indexed funds/passive investing as the biggest challenge facing investor relations professionals today, up from 32% in 2022
• Stock market volatility and ESG reporting are other top responses about challenges - the same top responses from 2022

In addition, the 2024 survey captured advanced degrees and credentials held by investor relations professionals.

• Nearly 60% of 2024 respondents have advanced degrees (49% hold MBAs and 10% hold an MS or MA degree). This percentage is an increase from 2022 levels but a decrease from 2019 levels
• In 2024, 9% of respondents hold CPAs, 11% hold CFA credentials, and 12% hold the Investor Relations Charter (IRC®) certification, percentages largely unchanged from 2022

NIRI will post a detailed survey report on its website, which will be available exclusively to NIRI members.

"These survey results demonstrate both quantitatively and qualitatively what we have witnessed happening throughout corporations around the world. Investor relations is evolving, broadening in responsibility, and becoming a more strategically important part of corporate management teams," said Matthew Brusch, President and CEO of NIRI.

"Tumultuous capital markets, along with the improving skills of IR practitioners, has strengthened the value proposition of the Investor Relations Officer as a 'key strategic advisor' to the C-Suite that's helping to shape and drive company valuations," said Richard Marshall, Korn Ferry Global Managing Director, Communications and Investor Relations.

Peter McDermott, Korn Ferry Senior Client Partner, added, "While I am encouraged by the continued elevation of the Investor Relations function, we clearly have more work to do to further diversify the function. The IR role is often a successor to the CFO and other finance leadership roles - if we continue to diversify IR, we will ultimately see further gender and ethnic diversity across the CFO function as well."

About the Survey

The data for this study was collected during May-July 2024 with 429 responses collected from approximately 3,000 corporate practitioners (i.e., non-agency/consultant)." This is the eighth joint survey NIRI and Korn Ferry have partnered on since 2008.

About NIRI: The Association for Investor Relations

Founded in 1969, NIRI is the professional association of corporate officers and investor relations consultants responsible for communication among corporate management, shareholders, securities analysts, and other financial community constituents. NIRI is the largest professional investor relations association in the world with members representing over 1,500 publicly held companies and $12 trillion in stock market capitalization.

About Korn Ferry

Korn Ferry is a global organizational consulting firm. We work with our clients to design optimal organization structures, roles, and responsibilities. We help them hire the right people and advise them on how to reward and motivate their workforce while developing professionals as they navigate and advance their careers.

About Korn Ferry's Corporate Affairs and Investor Relations Center of Expertise

Korn Ferry's Corporate Affairs and Investor Relations Center of Expertise is a global practice area that specializes in recruiting and onboarding talent in the communications, investor relations, and government affairs functions across industry sectors.

About Korn Ferry's Executive Pay and Governance Practice

Korn Ferry's Executive Pay and Governance practice works with boards and leadership teams in public and private companies of all sizes and across all sectors. This practice provides the information, analysis, and perspective necessary for informed decision-making. This includes developing executive compensation programs tailored to organization's unique challenges, and helping companies align compensation with business strategies, retain top talent, and maximize the value of their investment - even in rapidly changing markets.

Media Contacts:

NIRI, Shannon Potter, Senior Vice President, Programs, [email protected] and 703-562-7680
Korn Ferry, Stacy Rozen, [email protected] and 310-435-1124

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