CFA Member Compensation Study

July 11, 2012

Contents

Executive Summary

Methodology & Sampling

Summary Employment Profile

10

Executive Summary

EXECUTIVE SUMMARY

Key Demographics:
The 2012 CFA Canada Compensation Survey is based on input from 2,135 CFA members
who responded to an online survey invitation. With a response rate of 18.3%, a sample of
this size produces results considered accurate to within +/-2.1 percentage points, 19 times
out of 20.
In terms of profile, 84% are male/16% female and the average age is 40 years. 92% are
charterholders, with 6% being candidates and 2% being neither. They have been in their
current position for 5.0 years on average, and with their current employer for 6.5 years.
Total average career tenure to date is 15.1 years.
CFAs work for a wide range of employers including asset/fund management firms (34%),
sell-side brokerages (8%), retail banking (8%), pension management (7%), investment
banking (5%), insurance (5%) and financial services consulting (5%).
A quarter (25%) work for one of the 6 largest banks, 4% for one of the 3 largest insurance
firms, and 7% for one of the 10 largest pension plans the remaining 64% work for other
organizations. Among the latter, 77% are Canadian owned organizations, while 23% are
subsidiaries of multinational/foreign organizations; 37% are publicly traded, while 63% are
privately held; and 62% have operations in multiple Canadian provinces, 37% in the US,
and 41% in other countries around the world.

EXECUTIVE SUMMARY

Summary of Key Findings:

A wide range of positions are held, including equity portfolio manager (9%), risk
manager/analyst (8%), sell/buy-side sales/trader/analyst (7%), sell/buy-side fixed
income/derivatives/credit analyst (6%). A combined 8% fall into roles of
CEO/CAO/COO (3%), CFO (2%), or CIO (3%).
Top roles performed include financial analysis (65%), client relationship management
(53%), portfolio management/stock selection (49%), general management/admin.
(44%), strategy development and planning (41%), performance management (36%)
and internal control and risk management (36%).

More than half (53%) of members say they personally manage assets for their
employers, managing an average of $3.5 billion.
Top designations held in addition to the CFA include MBA (26%), other Masters
degrees (14%), CA (9%), CIM (7%), CFP (5%), and FCSI (5%). One third (36%) hold no
other designations.

EXECUTIVE SUMMARY
Summary of Findings:
Top forms of compensation include base salaries (95%) and performance bonuses (77%), with few
receiving stock awards/phantom shares (16%, profit sharing 15%), commissions/sales bonuses
(14%), and stock options (8%).
The table below shows the mean amounts received for each category of compensation, both
among those receiving each type (table to the lower right), and in aggregate across all CFAs,
whether they receive them or not (lower left). Mean total compensation rose by 11% between
2010 and 2011, from $214,885 to $239,215. 61% expect their compensation to rise in 2012, with
32% expecting it to remain the same and just 7% expecting a decrease.
Thus, across all members, including those who receive each type or not, base salaries account for
49 percent of total compensation, while performance bonuses account for 25 percent. While stock
awards/phantom shares and stock options represent a smaller percentage of total compensation
across all members together, among the small proportion who receive them, they represent much
higher average values.

Base Salary
Commissions/Sales Bonuses
Performance Bonuses
Profit Sharing
Stock Awards/Phantom Shares
Stock Options
Total Compensation
Sum of Compensation

Aggregate Average Compensation

across all CFA members
Average
As Percentage of
Compensation
Sum of Compensation
2011
2010
2011
2010
$118,919
$109,026
49%
50%
$17,564
$14,529
7%
7%
$61,299
$55,373
25%
25%
$21,209
$18,010
9%
8%
$15,069
$12,792
6%
6%
$9,140
$7,450
4%
3%
$239,215
$214,885
$243,200
$217,180
100%
100%

Average Compensation
among Recipients
Proportion Average Compensation
Receiving
among those receiving
each Type
2011
2010
95%
$125,999 $115,517
14%
$130,867 $108,257
77%
$80,067
$72,326
15%
$145,215 $123,314
16%
$118,491
$96,577
8%
$100,343
$85,183
$239,215 $214,885

EXECUTIVE SUMMARY
Summary of Key Findings:
Across most compensation components, mean values are significantly higher than median
values, indicating a small proportion of CFAs receive very high compensation. In terms of total
compensation, the mean value of $239,215 is considerably higher than the median of
$157,500. The top 25% of income earners start with incomes of $260,000, rising to over $3.5
million.
Total compensation varies by region, sector and position held. These details are provided in the
full report. A few highlights include higher compensation in Toronto ($250,138) and Calgary
($269,684) than in Ottawa ($170,750), Winnipeg ($164,390), Atlantic ($163,699), and Quebec
($126,871); and higher compensation for CEO/CAO/COOs ($565,504), CIOs ($544,206), equity
PMs ($396,700), and fixed income PMs ($351,921) than those in roles of
compliance/regulator/portfolio administrator ($115,843), sell/buy fixed
income/derivatives/credit analyst ($124,651), and investment consultant ($132,542).
Those with longer tenure/more senior positions derive a larger proportion of their
compensation from profit sharing and performance bonuses, as well as stock options/stock
awards than from base salaries. Those in roles of financial advisors/brokers or private
banker/client advisor receive larger shares from commissions/sales bonuses.
Top benefits received include CFA Professional Membership Dues (95% - significantly higher
than the 58% who receive coverage for other professional associations) and various forms of
insurance including health (94%), dental (94%), life (91%), long-term disability (91%), shortterm disability (89%), and vision (88%). While 68% receive pension benefits and 47%, most do
not know either the current value (60%) or pension payout amount (64%). Half (49%) say their
employer pays for 100% of CE credits, while 17% say it pays for some but not all, and 7% pay
only for mandatory credits. 27% do not pay for any.

Methodology & Sampling

Methodology and Sampling

Method

E-mail invitation to complete an online survey, with two email reminders. Each
email contained a link to the survey housed on a secure website managed by
Environics field agency, Research House, based in Toronto, Canada

Respondents

Members of CFA Societies from across Canada

Sample lists provided by each CFA Society
No screening or attempts to set quotas by member type were made

Timing

April 19 May 11, 2012

Median completion time of 12.2 minutes

Sample Size

A total of 11,673 CFA members were invited to participate. A total final

sample of n = 2,135 was collected, yielding a response rate of 18.3 percent

Statistical
Significance

At the national level, results are considered accurate to within

+/-2.1 percentage points, 19 times out of 20. The margin of
error for subgroups will be wider.

Limitations

The self-reported data included in this report covers broadly defined positions and, as
such, provide members with useful directional frames of reference about pay levels. It
should also be noted that because the survey includes only data from a sample of
Canadian CFA members, it is not necessarily representative of the full CFA Institute
membership or the total population of individuals in these positions

Respondent Profile

10

RESPONDENT PROFILE

Gender:

84%

Male

Respondents have a mean age of 40 years, with just 14

percent being aged 50+. Those in Victoria (43.9 years),
Okanagan (46.1 years )and Winnipeg (42.5 years) are slightly
older than those in Calgary (38.6 years) and Montreal (38.5
years).

16%

Female

Age:
<30

9%

20%

30-34
35-39

Mean:
39.9 years
23%

40-44

21%

45-49

12%

50+

14%

Findings:
A majority of respondents are male (84%).

Nine in ten (92%) are charterholders, with 6 percent being

candidates and 2 percent neither. Those in Vancouver (96%),
Okanagan (100%) and Ottawa (97%) are more likely to be
charterholders. Those under 30 years (30%) or 30-34 years
(8%) are more likely to be candidates.

CFA Status:

92%

Charterholder
Candidate
Neither

6%
2%

11

RESPONDENT PROFILE

CFA SOCIETY
Vic- Van- Okan- Cal- Edmon- Saskat- Winni- TorTotal toria couver agan gary
ton chewan peg onto
Unweighted n= 2135

Ott- Mont- Que- Atlawa real bec antic

29

188

214

60

37

77

1008

64

365

50

34

Male
Female

84%
16%

79%
21%

84%
16%

89%
11%

81%
19%

85%
15%

73%
27%

82%
18%

84%
16%

84%
16%

86%
14%

86%
14%

85%
15%

<30 years
30 34 years
35 39 years
40 44 years
45 49 years
50+ years
Mean:
Median:

9%
20%
23%
21%
12%

10%
7%
17%
14%
21%

7%
24%
24%
18%
14%

11%
33%
11%

12%
21%
27%
20%
10%

7%
23%
27%
27%
10%

11%
32%
19%
14%
11%

6%
18%
23%
16%
13%

10%
19%
22%
22%
13%

3%
20%
22%
25%
16%

9%
22%
29%
22%
8%

6%
30%
34%
6%
8%

9%
29%
18%
24%
6%

14%
39.9
39.0

31%
43.9
45.0

14%
39.8
38.0

44%
46.1
49.0

11%
38.6
37.0

7%
38.7
38.0

14%
38.7
37.0

23%
42.5
40.0

14%
40.1
39.0

14%
40.9
41.0

9%
38.5
37.0

16%
39.1
37.0

15%
39.1
37.0

Charterholder
Candidate
Neither

92%
6%
2%

93%
3%
3%

96%
3%
1%

100%
-

91%
8%
0%

93%
5%
2%

89%
11%
-

95%
5%
-

91%
7%
2%

97%
2%
2%

91%
6%
3%

92%
6%
2%

91%
3%
6%

12

EMPLOYER
Asset/Fund Mgmt.

34%

Brokerage (Sell-Side)

8%

Retail Banking

8%

Pension Mgmt.

7%

Investment Banking

5%

Insurance

5%

Financial Services
Consulting
Oil & Gas

5%

4%

Brokerage (Buy-Side)

3%

Government Finance

2%

Systems Mgmt.
Private equity/wealth
management
Regulator

2%
1%

Accounting

1%

Educational Services
Corporate/
Commercial Lending
Manufacturing

1%
1%

Utility

1%

Other

Findings:
One-third work for an asset or fund management firms
(34%). Sell-side brokerages (8%), retail banking (8%),
pension fund management (7%), investment banking
(5%), insurance (5%) and financial services consulting
(5%) are other top employers.
Those in Calgary are more likely to work in oil & gas
extraction (30%).
Those in Winnipeg are more likely to work in insurance
(25%).
Those in Edmonton (23%) and Victoria (38%) are more
likely to work in pension management.

2%

Those in Ottawa are naturally more likely to work in

government finance (33%).

1%

6%

B2. Into which one of the following major industry groups does your employing company best fit?

13

CURRENT POSITION
CEO/CAO/COO/Pres.
Chief Financial Officer
Chief Investment Officer
Sell/Buy Side Sales/Trader/
Analyst
Sell/Buy Fixed Income.,
Derivatives, Credit Analyst
Portfolio Manager (Equity)

7%
6%
4%
5%
5%

Portfolio Mgr. (Quant/Indexed)

Buy-Side Research Analyst (Equity)

8%

Risk Manager/Analyst

4%

Accountant/Auditor

Economist/Investment Strategist
Financial Advisor/Broker
Institutional Sales/Investor
Relations
Manager of Managers
Private Banker/Client Advisor
Corporate/Commercial Banking
Corporate Finance, M&A,
Valuator
Other

Sell-Side Research Analyst (Fixed Income)

Performance Analyst
Buy-Side Research Analyst (Fixed Income)
Buy-Side Research Analyst (Quantitative)
Credit Analyst (Rating)
Derivatives Analyst
Security/Investment Analyst

9%

Portfolio Manager (Fixed Income)

CSR/Fund Sales
Compliance/Regulator/
Portfolio Admin.
Consultant/Investment Consult.

Sell-Side Research Analyst (Equity)

Sell-Side Trader (Equity)
Sell-Side Trader (Fixed Income)
Sell-Side Sales (Equity)
Sell-Side Sales (Fixed Income)
Buy-Side Trader
Securities Trader

3%
2%
3%

2%
2%

Compliance Analyst
Portfolio Administrator
Regulator

4%
2%
4%
2%
3%
4%
3%
4%

C2. Which one of the following job categories do you fall into?

Business Development
Corporate Development
Marketing & Product Development
Financial Analyst (Generalist)
Management (General)
Strategy
Government Finance
Other Various

12%
14