For many people in treasury, earnings and potential earnings, make up a key element of the attraction of the profession. So, it’s good news that treasury salaries have picked up in most markets. In its latest salary survey, recruitment consultancy Michael Page found the highest-paid Group Treasurers in London earned £200,000 a year while the average salary for an Assistant Treasurer is now £110,000. Moving down the scale, average salaries for Treasury Managers (£75,000) and Treasury Analysts (£50,000) have also increased.

Treasury jobs are also in step or higher than other finance jobs. For example, a London-based Tax Director earns £150,000+ and a Head of Tax is on £200,000. In previous years, tax directors have earned more than treasury driven, in part, by the Big Four accounting and advisory firms driving up demand for tax and accounting professionals.

Across the pond from the UK, Mike Richards, CEO and Founder of the Treasury Recruitment Company describes treasury salaries in the US as “very high,” and elevated above UK levels due to the higher cost of living and the tax burden. He also notes US pay rises have been sharpest in large urban areas. “A New York-based Treasurer can earn double the equivalent job in London, but people have to pay more for their house and in taxes,” he says.

In Australia, treasury salaries have also spiked higher after a long period of staying the same. “For five years in the lead up to Covid, salaries didn’t change in the Australian market,” observes Simon Lynch, Founder and Director of Sydney-based treasury recruitment firm Treasury Talent who estimates around 3,000 people work in treasury in Australia and because the supply side is challenged, companies pay more for top talent. “In the wake of the pandemic, salaries have risen dramatically. Pre-Covid a Treasurer earned about AU$350,000 and now the same Treasurer is on around AU$450,000 and junior roles have scaled up too.”

Despite today’s firm salary levels, there is no suggestion salaries will climb higher still. In London, recruiters report a glut of talent and fierce competition for senior roles. Treasury by nature is a specialist area and not subject to boom or bust and companies have adopted a cautious approach to hiring and finding the skills they require, particularly data expertise. Meanwhile, tariffs and trade uncertainty are impacting company’s appetite to recruit. “As cost pressures and currency fluctuations increased, many businesses paused recruitment throughout 2024, choosing instead to focus on improving systems and efficiencies rather than expanding or upskilling their audit, tax and treasury teams,” states Michael Page in its salary survey.

Factors affecting remuneration

Salaries vary according to the size of the business and the degree of complexity of the role. For example, a higher salary will come with international scope or capital funding requirements demanding more sophisticated products and a higher degree of experience.

Broader management responsibilities also determine remuneration. One element of managerial responsibility is the leadership of the treasury team. Similarly, many treasurers have duties beyond treasury encompassing other functional areas that might include tax, pensions or insurance.

“The treasury role can differ dramatically depending on the type of company,” reflects Richards. “A Group Treasurer at a UK Housing Association, for example, is dramatically different to the role of Group Treasurer at a multinational with a team of 80 and five different service centres.”

Qualifications also impact remuneration and unsurprisingly, there is a strong correlation between earnings and formal education. Recruiters say formal treasury qualifications shoot candidates straight to the top of the list and also support eligibility for promotion and the speed at which people progress. The Certified Treasury Professional (CTP) designation provides a solid foundation and a launchpad into other accounting or more analytical roles within banking or investment management.

Recruiters also note a demand pyramid impacting remuneration at the top. Few people study treasury, and many people fall into it. It means talent at the bottom of the pyramid is often constrained and if people are good, they quickly get bumped up. However, more senior roles are much scarcer and the picture switches from supply limited to supply long for roles like assistant treasurer and treasurer which naturally has an effect on levels of remuneration.

In another trend, demand for senior treasurers has also been crimped by foreign takeovers and private equity groups buying companies which can lead to a diminution in the role of the treasury function, or its complete removal. Treasury in private equity is usually more manual and with less complexity although the use of leverage usually makes debt scenarios more interesting and dynamic.

The abundance of junior roles in treasury is particularly pronounced in India where young people dominate the profession. Kashaf Jaffer, Head of Treasury at Puma Energy in Mumbai estimates the average age of his 25-member treasury team is much younger than most at around 25 to 30 years old. “Gen Z bring their own way of working,” he says. “They are more fearless, and with a bigger risk appetite regarding their plans for career growth.” This bodes really well for Puma since they bring in the agility to manage challenging responsibilities such as Liquidity Forecasting & Management, FX Risk Management, Controlling & Reporting and Treasury Systems & Projects.

How important is remuneration?

Of course, remuneration is just one factor treasurers consider important and job satisfaction does not just depend on salary levels. Job satisfaction is also linked to people’s relationship with their boss, work-life balance and if they have career progression. Those without enough runway ahead will be more prepared to leave, whatever the remuneration.

Candidates’ motivations for seeking new roles have shifted, with many now prioritising factors beyond salary, such as work-life balance and job security, observes Michael Page. As a result, employers have had to adapt, offering more holistic and appealing propositions to attract top talent – often without relying on significant salary increases as seen in previous years.

For some people, hybrid working is of the most value, explains Connor Matthews, Associate Director, Specialist Finance and Human Resources, at the recruitment group. “Similarly to other industries, we’ve seen audit, tax, and treasury professionals gradually return to more days in the office. This has unsurprisingly brought challenges for businesses when trying to secure candidates, as they struggle to match established behaviours and benefits candidates have become accustomed to in their existing positions. As such, clients are having to be more flexible than ever in their offers to make it compelling, competitive and compensating enough for candidates to make the move.”

Working from home is particularly important to juniors on the lowest salaries. Although this cohort are also driven by salary and title because it makes a difference to their income, they also like the cost-saving of working from home. “If, say, a treasury analyst has two-three days in the office and is offered a pay rise to come into the office full time, they will say no thanks. They’d rather do three than five days in the office. Whereas at the treasurer level they are more open to being in the office full time as they are on higher packages,” says Richards.

Lynch believes treasury professionals’ direct report offers a valuable window into job satisfaction and how treasury is viewed at the company. If treasury staff report to the Financial Controller or Head of Tax, treasury is viewed as a cash management function. However, if a treasurer reports to the CFO this suggests treasury is strategic and a source of genuine interest at the company. “The unhappiest people in treasury are analysts because they are not empowered. Once people start to take on more responsibilities and become more of a manager, they are empowered and enjoy their job more.”

Interviewees mostly agree that titles don’t tend to motivate people – and it’s easy to land a big job title in treasury that is often not matched by the salary. Lynch reflects that it is commonplace to hear about “people with big titles that are not paid at that level.”

However, it’s different in India where Jaffer notes that treasury teams are a bit more attached to titles. This cultural nuance can be a source of conflict because MNCs typically prefer to have a uniformity in roles across their different subsidiaries in the group. “MNCs don’t want ten titles in one country that are different to rest of their jurisdictions,” he notes. He says career progression at Puma Energy is more closely linked to functional skills, appetite to go the extra mile and take on more responsibilities along with hard-work and patience than job titles alone.

It leads interviewees to reflect that there is a degree of confusion about the role of treasury amongst people seeking to move into treasury from other roles in finance and banking because the roles are not transferrable. “My advice is that you should often see if there is an internal move open to you first. If you want to move from a wider banking role and then go into treasury maybe you can spend time with the Asset Liability Management team and gain hands on experience of what the role of treasury actually is,” says Richards.

A confusion about the role of treasury also extends to internal recruitment teams. It’s why recruitment consultants specialising in treasury say they are best positioned to hunt for talent over internal HR. “Most of my placements are the result of clients not being able to get the people they want themselves and coming to me,” says Lynch. “Internal HR is not always familiar with treasury because it is niche and combing LinkedIn will never source the right people. The people who are most active on LinkedIn are not necessarily the ones you want. Unless you’ve met lots of people and know the market, it’s difficult to know who the most talented people are.”

What about the bonus?

The bonus makes up an important element of remuneration. The bonus grows as treasury professionals become more empowered so although a treasury analyst will get a bonus – somewhere in the region of 5-15% attached to the job – it’s not a significant part of the package.

For a Treasurer, if the bonus is lower, they might get a higher long-term incentive in a share package. Many treasurers are also able to negotiate lucrative sign on bonuses too. Bonuses can differ whereby tech companies might offer a bigger bonus compared to other sectors where treasury is more a risk function. A lower bonus typically leads to a higher base and treasurers in the largest companies receive the biggest bonus.