James Lock Founding Partner / Director of Executive Search T E.

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1 Salary Guide 2015

2 About Communicate Communicate is a niche consultancy focused exclusively on the provision of high-calibre finance professionals for commerce & industry businesses. We specialise in five areas: Core Finance, Tax, Treasury, Audit and Executive Search. As experts in our market, our ambition is to continually develop and invest in our professional network. As our team has expanded we have seen an increase in new business, however our repeat business has remained steady, generating 56% of our 2015 revenue. Additionally as over half of our placements in the last year were with FTSE and Fortune 500 companies, we feel we are living up to our aspirations. Specialising in the placement of permanent and interim candidates for many of the world s best companies, Communicate has earned an excellent reputation for providing fast and effective recruitment on a retained or contingent basis, without ever compromising quality. 2

3 James Lock Founding Partner / Director of Executive Search T E. james.lock@communicate-rs.com Although the majority of our clients are recruiting to grow, the enduring shortage of candidates will continue to prove a challenge to businesses and recruiters alike. Top finance candidates frequently receive multiple job offers, a trend that we expect to continue in It is still challenging to encourage clients to acknowledge this from the outset and therefore restructure recruitment processes to reflect the speed needed to successfully attain the best candidates. Processes need to be efficient, hiring managers need to be decisive, and compensation needs to be competitive. This does not just mean salaries, which are often increased when competing for top talent. We have also seen a growth in businesses offering non-salary oriented financial rewards, like sign-on bonuses and equity and shares at CFO level, in an attempt to attract the best candidates. It is also crucial that businesses consider a separate approach to strategic and critical hiring. We see regular reliance on temporary professionals to perform every day tasks and provide support in specific technical areas, for example those with IFRS experience. Strategic permanent recruitment necessitates hiring managers to be able to predict which candidates could add value in the long term, whether or not their skills are an exact match at the time of interview. 2

4 Sector Trends Our Core Sectors Technology & TeleComs Retail & FMCG Media Property & Construction Specialist Markets Tax Treasury Audit

5 Technology & TeleComs 2015 has come and gone and the Technology and Telecoms sectors are not slowing down. In fact quite the opposite, with London defining itself in the last year as the hotspot for new startups, pulling in talent from across the globe. Last year saw the rapid rise of diverse technology companies, from Uber to TransferWise. Technology is constantly advancing, allowing this space to develop and grow alongside the newest smartphones, apps and social media platforms of the day. Due to the desirable incentives for startups, we have seen the SME space grow, with smaller tech startups threatening or rather worrying, the bigger, traditional corporations, especially the Big 4 who were pushed to step up their game to compete with attractive start ups. This has led to an increase in salaries and incentives being offered in order to retain the best candidates.

6 Retail & FMCG 2015 saw an increase in consumer purchasing power due to falling inflation rates and wage growth. The economy picked up from 2014 and as the country s financial situation improved, businesses started to look to future growth and implement new hiring processes. Due to consumers having a larger disposable income, the commercial retail sector has maintained a steady growth rate throughout the year, with new roles being created for both temporary and permanent candidates. FMCG companies saw a rapid growth rate over 2015, with major emphasis placed on consumer convenience, saving both time and effort for the customer. Another key trend was that consumers desire a premium, unique service that can offer products tailored to them. This has led to an increase in business for SMEs, who can cater to these needs with greater ease than the global FMCG giants. Additionally, talent acquisition between SMEs, blue chip firms and the Big 4 became especially competitive in 2015, with salary, bonuses and perks being offered to sway candidates and secure the top talent in the city.

7 Media Recruitment within the media space is strong and continues to grow, year on year, a trend we expect to continue through A strengthened economy has seen media companies look forward and prioritise growth, similar to other competing sectors. As a result, a large proportion of the roles within commercial finance have been created, as companies plan to grow their finance functions. A key trend to consider within this space is the rejuvenation of the publishing industry. As technology grows, publishers have had to alter to fit with the ever evolving methods of media consumption highlighted that digital publishing is evidently the most dominant platform and it has been exciting to see that by prioritising growth in this area, coupled with the vast amount of startups making London their headquarters, that talent is being attracted to the industry and swayed away from the Technology & Retail spaces. However, as more businesses within alternative sectors realise the importance of corporate culture, the media space is challenged to retain candidates for its finance functions based purely on a relaxed environment. Instead, we saw our clients increase their remuneration incentives, such as salary and bonuses in attempt to compete in the cross sector talent war.

8 Property & Construction The last year has been a positive one for the Construction and Property sectors, especially compared to the previous few years. This is mainly due to the improvement in the economy, coupled with the government s political agenda and Chinese investment that focused prominently on commercial property projects and boosting the residential housing market, making it more accessible,especially for first time buyers. This has then been reflected in the financial market, which saw a slight rise in hires over However, the most notable change in the industry is an increase in average salary, which has been driven up by an attempt to retain top talent in a competitive candidate market.

9 Tax The media shone a spotlight on the tax sector throughout 2015, incurring increased pressure on tax compliance and reporting due a number of high profile tax scandals, leading to a sharp increase in hiring of tax professionals. The hiring drive continued as the economy improved, enabling companies who had been reluctant to spend during the economic downturn, to now make a move. Consequently, we saw many mergers and acquisitions occur, which inevitably led for a demand of candidates with M&A experience. Additionally, new BEPs legislation that came into play in the latter part of the year led to an increased demand in transfer pricing professionals. In financial services, the introduction of Solvency II legislation meant there was a bump in the sector in terms of hires. However, indirect tax hiring was similar to 2014, remaining stable but with little growth. We saw tax functions bolstering most at middle management level, with tax manager positions being the majority of the roles filed by Communicate. Furthermore, confidence in the market at senior level meant that candidates were more willing to move around, making this a very dynamic and exciting sector to work within. As we have seen in many other of our divisions, a candidate shortage coupled with a demand for talent with a certain skill set enabled candidates to demand higher salaries.

10 Treasury 2015 was an interesting period for Treasury. Although we did see growth, it wasn t at the same rate as our other specialist market divisions, Tax and Audit. When growth did occur, it was in the senior end of the market with the majority of roles placed at treasury manager level or above. Additionally, since the implementation of IFRS 9, we saw the demand for technical candidates that possessed a specific skill set. This led to a competitive talent acquisition struggle, due to the lack of desirable candidates. SMEs also started to appreciate the benefit of treasurers, which saw new roles being created as macroeconomic conditions improved. Overall, there has been a slight salary increase, but not as drastic as in other markets. We do however foresee salaries to grow over 2016 as demand increases.

11 Audit The overall trend in finance recruitment in 2015 has been remarkably positive and the audit market was no different. This is evident in the 23% increase in the number of vacancies compared to 2014, specifically in newly created positions. This increase was felt most heavily in middle management and within ERM. This trend can be seen across all sectors, bar those affected by the commodities crash, with increased regulation and compliance requirements amongst the key drivers. At the senior end, the market remained similarly buoyant to 2014, with the age old debate of whether to amalgamate audit and risk and the extent of which to co-source, regularly influencing the direction in which the audit functions were structured and hence their recruitment needs. Following the repeated and much publicised cyber attacks on blue chip firms, the demand for individuals with specialist skills within information security rocketed. This led to an intense recruitment drive for IT auditors, however due to a lack of candidates with the aforementioned skill set available, an aggressive bidding war occurred to retain top talent. As a whole, 2015 saw increased demand within IA, a trend forecast to continue in the coming year.

12 Commentary Tom Lyons Associate Director Core Finance E. T Generally, the lower salary bands are typical of SMEs with turnover of 100 million or less. Companies within the media and retail sectors also typically pay the low-to-mid rates, especially those which are considered brands and therefore do not rely on salary to attract applicants. Naturally, these are only estimates, and there is considerable salary variation driven by price wars for top applicants. There is a particular shortage of accountants with up to 5 years of post-qualified experience, reflecting the dip in intake to the top firms in Competition is especially fierce at this level and salaries are likely to fluctuate as a response.

13 Permanent Position Low ( ) Mid ( ) High ( ) Financial Accountant Management Accountant Finance Analyst (Group) Finance Manager FP&A Manager Senior Accountant Financial Controller SME Large company Finance Director SME Large company Head of FP&A SME Large company Head of Financial Reporting SME ,000+ Large company Group Financial Controller SME Large company CFO SME Large company We recognise that salary ranges may vary dramatically by industry and company size, as well as according to factors such as skill set. Please contact us if you would like more information about your sector.

14 Temporary Position Low ( pd) Mid ( pd) High ( pd) Financial Accountant Management Accountant Finance Analyst (Group) Finance Manager FP&A Manager Senior Accountant Financial Controller SME Large company Finance Director SME Large company Head of FP&A SME Large company Head of Financial Reporting SME Large company Group Financial Controller SME Large company CFO SME Large company We recognise that salary ranges may vary dramatically by industry and company size, as well as according to factors such as skill set. Please contact us if you would like more information about your sector.

15 Market Insights

16 How did you find your current position? Other Online Job Boards Direct Application Recruitment Agency Referral

17 Has your salary changed in the last 12 months? Increased Decreased Stayed the same Prefer not to stay

18 Do you expect it to change in the next year? Increase Decrease Stay the same

19 How do you feel about your current position? Very Satisfied Somewhat Satisfied Neutral Somewhat Dissatified Very Dissatisfied

20 The top 3 benefits a company can provide: Working Environment Career Progression Competitive Salary

21 Do you have opportunity for advancement in your current position? Yes No Neutral

22 Do you see yourself moving in the next year? Yes No Unsure

23 Communicate with us Communicate Recruitment Solutions Ltd 17 Godliman Street, London, EC4V 5BD T E.