Chartered accountants see salary increases slow to 7%, survey shows

Increases in the salaries of chartered accountants have slowed to 7 per cent this year from 20 per cent last year, according to a survey released by the Leinster Society of Chartered Accountants.

Attributing the slowdown to the downturn in the economy, Mr Domhnall Cahill said salaries were now "back in line" and that the 2001 increases were "a realignment with other professions".

The average salary for managing directors in industry and commerce was €157,000 this year compared to €196,000 last year. The top earner in this sector will take home €740,000 this year while the lowest will pocket just €33,000. Last year's top earner received a comparatively lowly €267,000 plus car.

Heads of finance and their deputies in industry and commerce saw their pay rise from an average of €102,800 and €70,200 respectively to €111,800 and €73,200.

In financial services, this year the average salary for heads of finance is €131,000, an increase of just €1,000 on last year's average, while second-in-commands are earning €90,200 on average, up from just under €86,000 last year. This year's top earner in financial services will earn €108,000 plus a car and the lowest earner will get just €36,000.

For accountants in practice, top earnings this year come in at €190,000 for top managers, eclipsing their counterparts in financial services. Lowest earnings in practice this year are €29,000 for non-top-five seniors.

Generally, earnings in financial services and industry are better than those in practice.

More than half of the respondents to the survey received healthcare as a fringe benefit, while 36 per cent received a car. Share options as a benefit were received by 33 per cent and subscriptions to various clubs were enjoyed by 27 per cent.

Depending on the year of qualification, women's earnings matched or exceeded the overall average salary, particularly those who qualified in the past six years. Earnings of those who qualified earlier tend to lag behind male counterparts.

Mr Cahill said the report showed that "women can, and are, achieving salary packages comparable and, in many cases, greater than those of their male colleagues".

He pointed out that the majority of chartered accountancy students taken in this year were female and suggested that "this trend will continue" and the profession will see a "greater number of female chartered accountants in senior management roles thereby boosting their salaries".