Interim Treasury
The Interim Treasury market has been busy across all levels over the last 12 months. This has been driven by project work, along with increased workloads. In addition, due to challenges in permanent recruitment, there has also been a rise in 'temp to perm' hires. As a result, we have seen an increased demand for interim solutions as organisations focus on cash flow, technology, commodities, risk, liquidity, first-time treasury hires and refinancings.
Interim salaries and daily rates have also been uplifted due to changes in IR35 legislation and increased permanent salaries and talent shortages, especially at the Treasury Manager level.
Salary Trends
Salaries within the treasury market vary hugely. For example, there is a large gap between FTSE 100 and 250 remuneration and a broad range of titles used for similar jobs – Head of, Assistant Treasurer, Deputy Treasurer – and vast salary ranges amongst them.
Companies are facing increasing upward pressure on remuneration to attract the right talent. Given the evolution of treasury and its importance as a strategic partner, 2022 saw salary levels increase, although some businesses were slower to respond. We expect things to continue much the same throughout 2023 as companies decide on their responses to inflation.
2022 saw steep uplifts at the operational level / early strategic level when people moved roles, with total compensation increases hitting 27%-33%. Treasury Manager's salaries had been encroaching on Assistant/ Deputy Treasurer ones. As we hit bonus season and companies react to inflationary pressures, we are seeing these uplifts turn the dial on Group Treasurer and Deputy/ Assistant Treasurer salaries, with 4-7% being the 'typical' inflationary increase and examples of 11% uplifts. This has resulted in big swings and variances in people's salaries, as companies' reactions to inflation differ.
As always, there is a shift in package constructions once in a more strategic role. For those that moved at these strategic levels, compensation uplifts were centred more around longer-term incentives than short-term earnings impact. Salaries for treasury positions started moving pre-inflation and often landed above an inflationary increase. At the Group Treasurer level, packages have increased through retention-based bonuses and inflationary uplifts.
At the head of/ GT levels, there is a substantial weighting on longer-term incentives than short-term earnings impact, with many doubling their base salary when looking at total compensation. However, when we look at shares, these are still mostly reserved for the group treasurer level and typically only hit the Deputy level within top-end FTSE companies.
Salaries may start to steady once the inflationary increases have stabilised. The significant uplifts of 2021/2022 were predominantly driven by a lack of growth in recent years and increased skills over that same time frame.
Looking Ahead
Treasury will likely remain in the spotlight, with the focus on the strategic (rather than operational) treasurer. But, again, we will probably see liquidity and cash remaining front and centre. Still, with increased interest rates and a year of market volatility, these areas will become increasingly critical and the strategic treasurer ever increasingly sought-after.
Salary Guide
There are anomalies outside these bandings where exceptional compensation structures apply. For bespoke salary information, please get in touch with Pure.