Here’s some information on the salary expectations for a Finance Director in an AIM-listed (Alternative Investment Market) company, formatted in HTML:
The salary for a Finance Director (FD) in an AIM-listed company in the UK can vary considerably depending on several factors. These include the size and complexity of the business, its stage of growth (e.g., start-up, established), the sector it operates in, the location, and the experience and qualifications of the individual FD.
Generally, you can expect a base salary range of £120,000 to £250,000+ per year. This is a broad range, and the higher end is generally associated with larger, more established, and more profitable AIM companies. Start-ups or smaller AIM businesses might offer salaries at the lower end of the spectrum.
Beyond the base salary, there are often significant additional compensation elements:
- Bonus: Many AIM-listed companies offer performance-related bonuses. These can range from 20% to 50% (or even higher in exceptional cases) of the base salary, tied to achieving financial targets, strategic goals, or specific key performance indicators (KPIs).
- Equity/Share Options: Equity participation is common, especially in earlier-stage or growth-oriented AIM companies. This allows the FD to share in the company’s success and can be a significant source of wealth creation if the company performs well and its share price increases. The value of equity packages is highly variable and depends on the company’s valuation and the number of shares granted.
- Benefits: Typical benefits packages include private healthcare, pension contributions (often a percentage of salary matching), life insurance, and potentially other perks such as a company car allowance.
Factors Affecting Salary:
- Company Size & Revenue: Larger companies with higher revenues typically pay more.
- Profitability: Profitable companies are more likely to offer higher salaries and larger bonuses.
- Industry: Some industries (e.g., technology, pharmaceuticals) tend to pay more than others.
- Experience & Qualifications: A highly experienced FD with a strong track record and relevant qualifications (e.g., ACA, ACCA, CIMA) can command a higher salary.
- Location: London-based roles often attract higher salaries due to the higher cost of living.
Importance of Negotiation:
It’s crucial for prospective FDs to research industry benchmarks, understand the company’s financial position, and negotiate effectively. Consider the total compensation package, including salary, bonus potential, equity, and benefits, when evaluating an offer. The long-term potential of the company and the opportunity to contribute to its growth should also be factored into the decision.
Salary surveys from specialist recruitment firms focusing on finance roles in the UK can provide more specific and up-to-date salary data. Consulting with a recruiter specializing in AIM-listed company finance roles is also a good way to gain insight into current market rates.