What Does A Corporate Treasury Department Look Like

Hello everyone. I'm Mike Richards from the treasury recruitment company. I've been asked by the amazing guys at Corporate Treasury 101 Galom and Hassan to tell you what a corporate treasury department looks like. They don't look like this, luckily. Thank you. I run the treasury recruitment company. We recruit everyone in Treasury Treasury Assistant to Global Treasurer on a global basis. So that's why the guys asked me, could I team up with them and help them with, well, an explanation. If you're starting your treasury career or maybe later on in your career, who knows? How does a Treasury team actually function? How is it structured? What are the different roles? How do they contrast between different things? So we came up with some slides which you can look at the slides, no problem at all. But also I'm just going to talk you through them briefly. Why am I. Why I've been asked? Well, because I've got a very big head you see on here. Apologies for that. Big on everything. But I'm Mike Richards, I run the treasury recruitment company. I've done for 20 plus years. So we've recruited everywhere and seen every single different kind of role from Treasury Assistant, which we'll go through in a minute, right through to treasurer, as I say. And we've also got an idea on some of the salaries. We put in indicative salary levels. Now this varies according to the country. If only there were a way that you could benchmark your salary. Ah, there is. Treasurysalary.com we run a salary survey. Again, I've spoken around the world about this, about personal branding as well, but we. That's not for today's video. This is about. Well, actually I do a Saturday, I do a podcast, as you can see here. And that's another way that I found out about all the different ways that Treasuries run. And the one thing you can say about all Treasuries is they're all different. There are some commonalities, but they're all different. I spoke at a recent conference and one of the key things I pointed out to the audience was that everyone had virtually the same same name badge. They were all the treasurer. I said we all do it differently in different ways, using the same tools. Similar tools, but in different ways. So everything varies. But as I say, I've got a lot of that knowledge from talking to these treasurers. So it will be a 1010 podcast episode. 10 episodes. But in actual fact it's turned out to be 240 plus. And then I teamed up with the guys at Corporate Treasury 101 to produce some of this content. Typical Treasury Department structure. Let's go through. We'll go actually from the more junior. So what you'll find there, you got treasury system right at the bottom. So those you might be a Treasury assistant. You're doing the hard work, you're doing the graft, you are doing confirmations, you're doing making sure that all the things get done, all the detail. Not saying that treasurers aren't detailed, but that's where you'll focus a lot of your time. Then you have the treasury dealer who fits in the front office. You have the treasury accountant fits in the middle office. Systems help it all the way through. Systematize and everything work and then that's right, lovely treasury analyst. We've got some indicative salaries. As I say, those are ranges just to give you as you go up the seniority, then a bit further up cash manager and then you've got treasury manager, then assistant treasurer, international treasurer or regional treasurer that will be setting on that maybe takes looks after say 5, 10 countries within maybe Europe or across Asia Pacific or something like that. And then you have at the next level of seniority a deputy treasurer. And we said what's the difference between a deputy treasurer and an assistant treasurer? It's exactly that in the title. I used to struggle this early in my career and then I slowly thought about it and interviewed a lot of them. An assistant treasurer assists deputy deputizes. Sorry about that. Bit corny, but it's true. So an assistant treasurer, before they press the button to do a big deal or something like that, they will be assisting the treasurer. They will generally have to pick up the phone or get authorization and check with their boss. It's okay to make that deal or to do a joint venture or something like that. Deputy treasurer tends to have that much more authority. Not all the time, but most of the time they will be a deputy treasurer who is someone that can actually, what's the word? Push the button. Actually someone who has authority. And before that, then and above that you have a group treasurer. Then you'll see a group treasurer and a global treasurer at the top. Difference there. We recently ran one of our salary surveys and we have this massive bracket of group treasurers and it ranged from as we've got here, 99,000 up to 337. That was one hell of a bell curve. But in actual fact what we were describing was, you know, we re categorize some people when we talk to them, but it might be the group treasurer of a housing association and they might have one or two members of staff, but legitimately they are the group treasurer, but they're not really a global treasurer. So a global Treasurer might have five or six global regional treasury centers reported, or seven in some cases might have 80 staff reporting to them across the world in every time zone they'll be dealing with 90 plus countries, whereas you've got a group treasurer domestically, just dealing with one country. They're very, very different jobs. And if you want us to go more into that detail, we can just call us treasuryrecruitment.com always come to us. But I want to get on with the rest of the slides. Don't want to run out of time today. This is exactly it. Now, I described this, actually a lot of these notes came from some of the training notes I did for my team. Front office, middle office and back office. How does that work? Exactly? As it says, you go into the front office, you're looking to do a deal with the company, or you're looking to exchange some foreign exchange for your company. This isn't going to the airport, this is actually you for your company wanting to maybe, you know, buy another company or buy some goods and things like that. What you're actually doing is dealing on behalf of your company. So if you're buying goods in a certain country, you're doing a foreign exchange deal. So you do it, you might do it electronically. In the old days you used to pick up the phone, speak to a bank exchange or you know, buy or sell or trade or whatever you might do. And that is the treasury dealer. Once they've done that deal, they have the paperwork. Now it's electronic, but used to, let's think about it, physical way, you would then pass it off to the middle office. They were in charge of reviewing this, not recording it, reviewing it in the middle office. What are the risks of doing that deal? If you do that deal, there are inherent risks. If it's derivatives or something like that, you'll have heard this on some of the other episodes. If you're going to do this, it has inherent risk, if you like. So you talk to your middle office. A lot of those will tend to be accountancy qualified because they'll look at the balance sheet and see where the risks are coming out of that doing that deal. Then they've done the deal. Yes, actually we're happy with doing this. They rubber stamp it if you like and then or virtual rubber stamp, then you go, oh, give it to your back office. Why? Because it needs to be recorded and the decisions made need to be recorded to show that there's compliance all the way through. Exactly. As you can see, very nice notes here. Hold on guys, let's keep going. So, junior role, these are all in your pack, so I'm not going to go into big detail about them, but we've got some general ranges there. Treasury assistant, operational and actually as you move up the scale, you, you'll become more strategic and that's what you'll notice. And we've got some of the responsibility areas there. Treasury analyst, next level up, if you like. Analyzing the cash position, portfolio, investments and seeing sometimes you don't have a Treasury analyst, stroke dealer, you do both parts of the job. You tend to be in the front office, maybe touching into or blending into the middle office, but the back office will tend to be separate because of compliance and things like that. Again, two to four years experience, you might be studying towards a qualification. We put here the UK qualification, the AMCT CTP is another one in the us and there are other ones across Europe. But just for the sake of argument, let's keep going. Treasury dealer, cash manager and again, the deal. There's a difference. Dealing is about day to day dealing and everything else. Cash management, you might be working more with the businesses and actually seeing where the cash is and reconciling it and bringing it into the center. Physically or notional cash pooling. I don't know if the guys went on about that, but that is where you don't physically move the money from one bank account to another and from one country to another because there are tax implications. But notional cash pool is where you think, oh, notionally, this is where that position is. Yeah, I've done this for a few years now. Again, tend to be start to be more qualified that level as you start to move up, as you saw previously, treasury accountant, middle office role, you're accounting for all the risks. Absolutely fundamental right at the heart of things. Sometimes difficult roles to recruit because you'll tend to enjoy working the front office if you're doing the accounting. It's not a backup office function, but it's, you know, sometimes very intellectual and, you know, very challenging. So sometimes more challenging to get people, but yet wider. I mean, we've got 40 to 78. I think actually it should be wider than that. That was just a recent average from the beginning of 2022. Salaries have really moved up there and certainly at that level, treasury systems, again, implementing new treasury management systems, giving visibility on cash, getting rid of risk, hedging it and Everything else, these systems help you with that as well. Treasury, treasury manager. Yeah. And again, size of department, you might have a Treasury team of five people. So treasurer, group treasurer, or maybe global treasure, or maybe let's do group. You might have an assistant treasurer, treasury manager, treasury analyst. And that could be. And then it starts to build out from there. If you like the pyramid keep going. So you've read that again, these are in your pack so you can have a look. Assistant treasurer, exactly as I said, assists, you know, a big wide range of activity. Slightly more junior than a deputy treasurer. Middle office role. I think actually it's wider than that. It's probably front, middle and back office. Has oversight of all areas, but tends to be front and middle. International region again, over a number of countries. If you have further questions, you can always contact us. You can speak to Assam, you can speak to Cologne, they can help you as well. But this is what we're seeing. If you like, you go Deputy Treasurer. There is usually only one Deputy treasurer except for in some of the mega major companies, you will have a deputy treasurer and you might have an Assistant Treasurer and Deputy treasurer might be more strategic, outwardly focused and the Assistant treasurer will sometimes be more inwardly focused, managing the team, looking after everyone, running reviews with them about their staff appraisals and everything else. Whereas the Deputy Treasurer is talking to the banks, might be doing the roadshow with the global treasurer going out and presenting the results and maybe a more external focus role that sometimes when I'm talking to assistant treasurers, they're loving their jobs, but they want, oh, I want the next step up and they want their role to graduate into a deputy treasurer type position. Moving on from that group treasurer, some people, as I say, you could have be the VP of Treasury a lot of the time in the us Director of Treasury. There are a whole variety of different titles. We're talking about probably the top of the company in treasury for certain organizations, smaller, maybe a medium size. But when you go then to the next level, you become a global treasurer. That's where the numbers also you get the pay. These were some, again, some of the salary bandings. I'd say it's actually wider than that and certainly the higher end. You know, we are now getting some of the Fortune 500 treasurers taking part in our Global treasury salary survey. Some of the numbers there, and rightly so, are that much higher. And again, one thing to add in there, in the uk, a group treasurer generally won't be on the board. CFO will be on the executive Board treasurer isn't in America. That is different. The treasurer over the years sometimes will sit alongside the CFO on the executive board. So it's an elevated position. It's more senior a lot of the time, which is a very good thing as well. Really has a an input the direction of the company as well. Before we wrap up last couple of slides, if you want to chat further, you just give us a call. We're always here. I'll leave those on there. That's our London number, but we've got US offices. We work right the way across uk, Europe and the US So reach out to us anytime. Final slide. Thank you very much. I hope this helps you with your treasury career. I hope the rest of the ebook was fun. I we certainly enjoyed putting it together and look forward to seeing you soon. And don't forget, go to either the Corporate Treasury 101 podcast on Spotify or you can come across to itunes or on Spotify to treasurycareercorner.com that's the podcast where we interview an amazing treasurer each and every week and it'd be great to have you as a listener. Thanks.