A/E/C Firm Performance--Not Size, Location or Market Sector-- Is Leading Factor in Management Compensation.Business/Technology Editors NEWTON, Mass.--(BUSINESS WIRE)--June 4, 2002 Across the board, however, expectations for salary increases and bonuses in 2002 lower than 2001 PSMJ PSMJ Professional Services Management Journal Resources, Inc., the management information resource exclusively serving the Architecture/Engineering/Construction (A/E/C A/E/C Architect/Engineer/Contractor ) industry, today announced findings from its 2002 A/E A/E Architect/Engineer A/E Architecture and Engineering Services A/E Air Entry (by auscultation) A/E Activity Elements A/E Ascent and Entry (spacecraft; NASA) A/E Attitude Ephemeris A/E Anarchy and Equality Management Salary Survey. Throughout the survey, results indicate signs of recession and economic uncertainty. "No longer subtle, these signs are clear indicators that many performance parameters have peaked and may begin to fall until a recovery is fully underway," reported 2002 A/E Management Salary Survey editor and consultant H. E. Daniels, Jr. "Firms are reacting to the economic recession that began in early 2001. Planned salary increases for 2002 have dropped from 5 percent in 2001 to 4 percent this year. Only 23 percent of participating firms expect bonus levels to increase, while 20 percent of responding firms now forecast a decrease--about double the percentage at the beginning of last year. "While these indicators still point to an overall level of optimism for 2002, it is not as positive as in the past few years," said Daniels. The wide range of bonus payments in all types and sizes of firms indicates that firm financial performance is the critical factor in compensation rather than other market factors. Other findings: - The median CEO base salary rose to $126,555, and total direct compensation (salary plus bonus) rose to a median of $192,000. For senior project managers, the medians were $75,000 and $81,400. - Management fringes were virtually the same as in prior surveys, indicating any economic gains have been limited to cash compensation. - Firm owners still have the equivalent of only three years' current salary in their personal buy-out, indicating individual owners are not going to be able to rely on their firm equity for their retirement income security. The Survey indicates firms have only limited reserves to pay equity buy-outs, suggesting that transitions will be financially difficult. PSMJ Resources surveyed 120 firms, representing 5,171 design firm managers, for its 2002 A/E Management Salary Survey, 20th Edition. About PSMJ Resources, Inc. For nearly 30 years, PSMJ Resources, Inc., has offered published information, educational programs, in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. training, and management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects services in Strategy, Marketing, Project Delivery, Human Resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. , Information Technology, Finance and Leadership/Ownership Transition to A/E/C professionals worldwide. PSMJ Resources conducts more than 200 educational seminars and conferences annually, supported by major professional societies, including AIA AIA - Application Integration Architecture and ACEC ACEC American Council of Engineering Companies (formerly American Consulting Engineers Council) ACEC American Consulting Engineers Council (now American Council of Engineering Companies) . Headquartered in Newton, Mass., PSMJ Resources offers more than 150 titles in book, audio and video, and publishes two newsletters on A/E/C firm management. PSMJ Resources also produces the industry's preeminent pre·em·i·nent or pre-em·i·nent adj. Superior to or notable above all others; outstanding. See Synonyms at dominant, noted. [Middle English, from Latin prae annual surveys on management salaries, financial performance and fees and pricing. On the Net: PSMJ Resources site: http://www.psmj.com |
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