Unfortunately, even more nonunion craft employees will not see pay increases this year.
(We will discuss professional-level employees in
the May/June issue.)
As shown in Exhibit 1, it appears we are finally bottoming out
and will begin to experience an upswing in pay increases. At
this point, we are optimistic that the number of companies
giving increases will rise as 2011 progresses. Note: Those
contractors giving increases in 2011 are projecting an average of 3.1%, slightly above the 2.9% previously mentioned.
Is the doom and gloom over? Probably not. With the large
number of skilled craft, professional, managerial, and executive employees either unemployed or stagnant in their daily
routine and pay, other industries probably seem very appealing.
As we examine 2010 executive pay, keep in mind that while
some contractors have maintained a competitive stance in the
marketplace, many have not.
Executive Pay in 2010
In addition to the traditional six benchmark positions that we
have presented in earlier CFMA Building Profits articles,
we have added six more titles this year.
The numbers used are averages based on all types of construction, all types of contractors, all revenue sizes, and all
geographic areas of the country. The actual data comes from
the 2011 Executive Compensation Survey for Contractors,
and are effective as of November/December 2010.
The Board Chair is considered a company’s senior officer
who receives salary and benefits. This position is responsible
for the company’s overall business strategy and objectives.
The base pay for the Board Chair of a construction company
in 2010 was $311,103.
The highest base pay (the 99th percentile) was $696,667,
with total direct compensation (base plus bonus) of
$2,107,333. The bonus paid to the Board Chair was $338,795.
The Board Chair’s pay was 131% of the CEO’s.
After years of steady
decline, research indicates
that 2011 may bring an
upswing in pay increases.
Competition from both within
and without the construction
industry is at the heart.
The position of CEO/President is responsible for all day-to-day
operations of the business unit. Typically, the CEO is an em-ployee/shareholder of the company.
The base pay for the CEO of a construction company in 2010
was $236,946, with a bonus of $261,994. The highest average
base pay was $613,062, and the highest total direct compensation was $2,809,387.
EXECUTIVE VICE PRESIDENT
The Executive Vice President of a construction company is
usually the number two operating officer and is accountable
for a full range of day-to-day operations or is responsible for
a major, multi-disciplined work segment of the company.
The base pay for an Executive Vice President of a construction
company in 2010 was $200,428, with a bonus of $209,869. The
99th percentile pay for this position was $392,017, and the
highest total direct compensation was $1,842,633. The
Executive Vice President’s base pay was 85% of the CEO’s.
Exhibit 1: Executive Wage Increases
5. 4 5. 4
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011