Compensation trends for in-house tax professionals.While compensation levels in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. have progressed rather conservatively in the range of 3.5-4.5 percent annually for the past 15 years, certain functions have commanded a pay premium in the marketplace from time to time because of supply-and-demand forces. For example, in the late 1990s, information technology jobs were considered "hot" as organizations responded to the Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 challenge and the "dot com dot com - com " companies were aggressively hiring. More recently, the enactment of the Sarbanes-Oxley Act See SOX. of 2002 and the scandals uncovered Uncovered may refer to:
A U.S. energy-trading and utilities company that housed one of the biggest accounting frauds in history. Enron's executives employed accounting practices that falsely inflated the company's revenues, which, at the height of the scandal, made the firm become the seventh and WorldCom The former name of MCI. Based in Jackson, MS, WorldCom, Inc. was a major, international telecommunications carrier. It was founded in 1983 by Bernard Ebbers as Long Distance Discount Service (LDDS), a reseller of AT&T WATS lines to small businesses. have created a demand for greater numbers of audit and finance professionals. As a result, there are some evidence of higher compensation movement in these key functions in both the professional accounting firms and general industry. Moreover, there is now some thinking that perhaps the Tax function will also see some market pressures to accelerate pay in light of some of these recent trends. Mercer Human Resource Consulting Mercer Human Resource Consulting is a human resource consulting firm that publishes the oft-quoted "Worldwide Cost of Living Survey." External links
Setting the Stage In virtually every region around the world, businesses are dealing with fast-paced Adj. 1. fast-paced - of communication that proceeds rapidly; "a fast-paced talker"; "fast-paced fiction" fast - acting or moving or capable of acting or moving quickly; "fast film"; "on the fast track in school"; "set a fast pace"; "a fast car" changes that require constant attention to the cost of labor--and the return of their investments. Executives are faced with the challenge of balancing pay, benefits , and career development needs with their business requirements. These rewards must meet both the business needs of the employer and the personal needs of employees--and fall within tight cost constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. dictated dic·tate v. dic·tat·ed, dic·tat·ing, dic·tates v.tr. 1. To say or read aloud to be recorded or written by another: dictate a letter. 2. a. by recent economic trends. Reward strategies must not only strike this balance now, but must also sustain it in what will likely be a constantly changing future. The challenge is to achieve an effective total rewards strategy in an environment of cost management as opposed op·pose v. op·posed, op·pos·ing, op·pos·es v.tr. 1. To be in contention or conflict with: oppose the enemy force. 2. to the overheated o·ver·heat v. o·ver·heat·ed, o·ver·heat·ing, o·ver·heats v.tr. 1. To heat too much. 2. To cause to become excited, agitated, or overstimulated. v.intr. late 1990s when the focus was on creating a marginal edge in rewards programs to attract and retain employees in the newest and hottest disciplines. During that period, as the stock market exploded ex·plode v. ex·plod·ed, ex·plod·ing, ex·plodes v.intr. 1. To release mechanical, chemical, or nuclear energy by the sudden production of gases in a confined space: and health care cost trends were far more controlled, employers felt they could--and had to--attract and retain key talent with offerings that were geared to the life styles of their workforces. Today the picture is quite different. Top-line growth and pricing power Pricing Power An economic term referring to the effect that a change in a firm's product price has on the quantity demanded of that product. Pricing power ties in with the "Price Elasticity of Demand. remain elusive. The stock market has proven once again that what goes up must come down, while health care costs seem to defy de·fy tr.v. de·fied, de·fy·ing, de·fies 1. a. To oppose or resist with boldness and assurance: defied the blockade by sailing straight through it. b. gravity Gravity The gravitational attraction at the surface of a planet or other celestial body. The quantity g is often referred to simply as “gravity’’ or “the force of gravity’’ of Earth, both of which are incorrect. and go in only one direction--up. In response to these trends, organizations reduce costs through layoffs, offshoring
Offshoring describes the relocation of business processes from one country to another. , conservative increases to base pay, and benefits cuts. The United States is experiencing a "jobless recovery A jobless recovery or jobless growth is a phrase used by economists to describe the recovery from a recession which does not produce strong growth in employment. The phrase originated in the early 1990s in the United States, to describe the economic recovery at the end of " where the economy is growing but employment is not. These actions are challenging companies on how to reward even their top performers much less the average employee. That said, the need to attract, retain and engage the "right" employees is as strong as ever. Thus, a balanced approach to total rewards that acknowledges the needs of both the business and its employees is more essential and challenging than ever before. Best practice companies are adopting a more holistic Holistic A practice of medicine that focuses on the whole patient, and addresses the social, emotional, and spiritual needs of a patient as well as their physical treatment. Mentioned in: Aromatherapy, Stress Reduction, Traditional Chinese Medicine view of total rewards that encompasses compensation, benefits, and careers, as follows: Compensation * Base pay * Short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. incentives * Long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. incentives * Recognition Benefits * Health and group benefits * Retirement * Work/life programs * Perquisites Fringe benefits or other incidental profits or benefits accompanying an office or position. The abbreviation perks is used in reference to extraordinary benefits afforded to business executives, such as country club memberships or the free use of automobiles. Careers * Training and development * Lateral lateral /lat·er·al/ (-il) 1. denoting a position farther from the median plane or midline of the body or a structure. 2. pertaining to a side. lat·er·al adj. 1. career movement * Stretch assignments * Career Incentives The key point here is that pay by itself is not the overriding (programming) overriding - Redefining in a child class a method or function member defined in a parent class. Not to be confused with "overloading". key component of a total rewards package for employees in any functional area including Tax. In fact, for many organizations the value of careers can turn out to be a very significant component of total rewards. As labor markets labor market A place where labor is exchanged for wages; an LM is defined by geography, education and technical expertise, occupation, licensure or certification requirements, and job experience tighten, and employees face more choices, organizations will have ample opportunity to demonstrate the power of their career management systems--or their absence. We suggest that organizations wishing to build and motivate the right workforce not only focus on pay and benefits but also emphasize the value of their careers over the long term. Clearly, in a small Tax function, this can be challenging but organizations need to make the extra effort to engage their employees and broaden job duties if career steps are not an option. Additionally, work-life balance The expression work-life balance was first used in 1986 in the US (although had been used in the UK from the late 1970s by organisations such as New Ways to Work and the Working Mother's Association) to help explain the unhealthy life choices that many people were making; they were issues are becoming increasingly important to individuals and should not be overlooked by companies in demonstrating the value of a total rewards package to employees. Compensation Trends for Tax Positions: 2000-2005 Each year, Mercer mer·cer n. Chiefly British A dealer in textiles, especially silks. [Middle English, from Old French mercier, trader, from merz, merchandise, from Latin merx conducts a series of compensation surveys of organizations in the United States covering a variety of functional areas and industries. These surveys encompass more than 800 job titles and reflect the pay levels of over 1.3 million employees in approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 2,000 organizations. In addition, Mercer conducts a proprietary custom survey of the major professional accounting firms which focuses on the pay practices of client facing positions in a number of practice areas including Assurance, Tax, and several specialty tax disciplines. The size of the participating organizations in Mercer's general industry compensation surveys represents the full range of organizations as shown below with a heavier weighting toward larger companies:
% of Participants Size of Companies
23 20,000 or more employees
31 5,000-20,000 employees
21 2,500-5,000 employees
25 less than 2,500 employees
The largest sectors represented in our general industry surveys tend to be service oriented o·ri·ent n. 1. Orient The countries of Asia, especially of eastern Asia. 2. a. The luster characteristic of a pearl of high quality. b. A pearl having exceptional luster. 3. : Insurance 19% Finance/Banking 17% Hospital/Health Care 13% Manufacturing 10% Retail/Wholesale 7% Education 7% Utilities 5% Approximately 200-300 companies annually participate in the compensation surveys involving the Tax Family of jobs. Mercer's compensation surveys are content based and reflect a standard set of job titles and associated summary descriptions. Survey participants are asked to match their jobs to the survey descriptions and provide data for base salary and total cash compensation (base salary plus annual bonus/incentive). For the Tax function, seven jobs are surveyed annually: * Top Corporate Tax Executive * Tax Compliance Manager * Tax Research Manager * Tax Manager * Senior Tax Accountant * Intermediate Tax Accountant * Associate Tax Accountant The survey data when compiled and analyzed an·a·lyze tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es 1. To examine methodically by separating into parts and studying their interrelations. 2. Chemistry To make a chemical analysis of. 3. can be segmented for a variety of dimensions including company revenues, assets and operating budget Noun 1. operating budget - a budget for current expenses as distinct from financial transactions or permanent improvements budget items, operating cost, operating expense, overhead - the expense of maintaining property (e.g. ; headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. ; geographic region; and industry sector. Data are reported for percentiles (25th, median or 50th, 75th) and averages. The median or 50th percentile percentile, n the number in a frequency distribution below which a certain percentage of fees will fall. E.g., the ninetieth percentile is the number that divides the distribution of fees into the lower 90% and the upper 10%, or that fee level reflects the data point at which half of the survey participants are paid above that level and half are below. Data in the exhibits that follow reflect the period 2000-2005 and show median and average data by job title as well as the annual percentage movement for each job title for base salary and total cash compensation. We recognize that company size is a factor in compensation levels, particularly at the more senior levels, and have therefore broken out the data for the "Top Corporate Tax Executive" into three categories: $1-5 billion in revenues; $5-10 billion; and $10 billion and above. For all other job titles, the survey data reflect "all companies" in the survey regardless of size. In reviewing the market data exhibits that follow, keep in mind that certain industries historically pay higher than others, e.g., Technology and Pharmaceutical. In addition, jobs located in high cost areas are often paid a premium compared with the national average. For example, jobs in the Metro The code name for Microsoft's XPS document format. See XML Paper Specification. New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden markets are paid a premium of approximately 16 percent vis-a-vis the national average for jobs below the $100,000 pay level. Finally, also consider that companies move in and out of the survey each year, which can have an effect on the year-over-year market movement percentages. Thus, other variables come into play in how a particular company considers this data in relation to its own Tax jobs. Moreover, as previously mentioned, the exhibits only show data for base salary and total cash compensation and do not reflect the effect of stock option awards or other long-term incentive vehicles at any job level. The summary descriptions for the seven survey jobs are presented below. Note that in our surveys, we do not have a "Tax Director" role. Top Corporate Tax Executive This is the top corporate tax position with responsibility for developing corporate tax strategy and administering TO ADMINISTER, ADMINISTERING. The stat. 9 G. IV. c. 31, S. 11, enacts "that if any person unlawfully and maliciously shall administer, or attempt to administer to any person, or shall cause to be taken by any person any poison or other destructive things," &c. every such offender, &c. tax affairs so that they are in compliance with federal, state, local, and foreign tax laws. Responsible for filing federal and state income, ad valorem According to value. The term ad valorem is derived from the Latin ad valentiam, meaning "to the value." It is commonly applied to a tax imposed on the value of property. , franchise, and other taxes. Responsible for the supervision of the tax staff. Frequently reports to a Chief Financial Officer. Tax Compliance Manager Responsible for the maintenance of tax records and the preparation of composite tax returns and related reports to ensure compliance with all federal, state, local, and foreign tax regulations. Responsible for the direct supervision of a staff of tax accountants. Frequently reports to Top Tax Executive. Tax Research Manager Responsible for administering the tax research and tax planning Tax planning Devising strategies throughout the year in order to minimize tax liability, for example, by choosing a tax filing status that is most beneficial to the taxpayer. functions as they relate to determining tax consequences to the organization or division. May have formal legal training or significant tax experience. Frequently reports to Top Tax Executive. Tax Manager Responsible for managing and directing all activities regarding tax research, planning, and compliance required of the organization. Works to optimize optimize - optimisation the tax obligation of the organization. Ensures that all appropriate tax returns and payments are filed in a timely manner. Typically found in smaller companies that do not have separate tax compliance, tax reporting, or tax research departments. Frequently reports to a Chief Financial Officer, Top Corporate Tax Executive, or Corporate Controller. Tax Accountant--Senior Under general direction, responsible for the more complex projects associated with the maintenance of tax records and the preparation of all or specifically assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. tax returns and related reports. This is the most senior skill level without supervisory responsibility. Position may provide functional advice or training to less-experienced tax accountants. Typically requires eight or more years of experience. Frequently reports to a Tax Compliance Manager or Tax Research Manager. Tax Accountant--Intermediate Under general supervision, responsible for moderate to complex projects associated with the maintenance of tax records and the preparation of all or specifically assigned tax returns and related reports. Typically requires a Bachelor's bach·e·lor's n. A bachelor's degree. degree and three or more years of experience. Frequently reports to a Tax Compliance Manager or Tax Research Manager. Tax Accountant--Associate Under direct supervision, responsible for assisting in the maintenance of tax records and the preparation of all or specifically assigned tax returns and related reports. This is an entry-level en·try-lev·el adj. Appropriate for or accessible to one who is inexperienced in a field or new to a market: an entry-level job in advertising; an entry-level computer. position. Typically requires a Bachelor's degree and less than two years of experience. Frequently reports to a Tax Compliance Manager or Tax Research Manager. We also compared the median annual incentive practices for the Tax positions in the survey with jobs in other functions at comparable salary levels. As shown in Exhibit 9, median incentive payouts for the Tax jobs are very similar to jobs at similar salary levels in other functions. Observations A historical review of the survey data for the Tax positions reveals the following: * Similar to other functions, senior level compensation levels tend to correlate with company size. * Pay levels for the Top Corporate Tax Executive position have tended to fluctuate year over year during the period 2000-2005. * There appears to have been a marked increase in base salary and total cash compensation levels for the Top Corporate Tax Executive position over the past year. Further analysis is needed, however, to determine whether this is the result of dramatically larger pay adjustments or incentive awards, or of some anomalies in the survey participant group from year to year. * Below the Top Corporate Tax Executive level, most of the jobs show a more consistent year-over-year movement that tends to track with what we have seen for overall movement in the general industrial marketplace. * There is no evidence in the 2005 composite data to suggest that pay levels for non-executive non-executive adj non-executive director → direttore m senza potere esecutivo Tax professionals have accelerated over the previous year. The View from the Professional Accounting Firms Contrary to what the survey data indicate for the broad general industry marketplace for Tax professionals, the market for Tax professionals in the professional accounting sector is showing signs of heating up in 2005. Anecdotal anecdotal /an·ec·do·tal/ (an?ek-do´t'l) based on case histories rather than on controlled clinical trials. anecdotal adjective Unsubstantiated; occurring as single or isolated event. information from select firms shows that the overall level of business in the Tax Practice is on the upswing Upswing An upward turn in a security's price after a period of falling prices. in 2005 compared with prior years which saw several firms downsize Downsize Reducing the size of a company by eliminating workers and/or divisions within the company. Notes: When a company downsizes, it is attempting to find ways to improve efficiency and increase profitability. It is sometimes referred to as trimming the fat. their respective Tax groups. In addition, the turnover rates in the Tax Practices have increased especially at the Senior Associate, Manager, and Senior Manager levels. Individuals are most commonly reported to be leaving for jobs in the private sector with smaller numbers moving over to mid-sized boutique Boutique A small investment firm specializing in offering specific, but limited services to a select number of individuals. Notes: These investment firms are the alternatives to large financial supermarkets. They provide a highly personalized environment for investing. tax firms or other large accounting firms. Work-life balance is often cited as one of the top reasons for leaving one of the major professional accounting firms as well as interest in a career change. Compensation is much further down the list of reasons given for leaving one of the accounting firms. While most of the major professional accounting firms are focused on retaining talent in the Assurance Practice areas, there are some indications that retention in the Tax Practice is becoming an issue as well. While there is some hiring from general industry tax functions, the professional accounting firms are more likely to recruit from other accounting firms in the more experienced job categories, e.g., senior manager or director. They find that they can fill their needs for certain industry experience or skill sets more effectively from other professional accounting firms compared with the general industrial sector. In setting pay levels, the accounting firms are more likely to benchmark A performance test of hardware and/or software. There are various programs that very accurately test the raw power of a single machine, the interaction in a single client/server system (one server/multiple clients) and the transactions per second in a transaction processing system. other firms as opposed to the corporate sector for their Tax positions. Of late, certain specialties are commanding higher pay levels vs. the broader Tax Services category of jobs, i.e., Transfer Pricing Transfer pricing refers to the pricing of goods and services within a multi-divisional organization, particularly in regard to cross-border transactions. For example, goods from the production division may be sold to the marketing division, or goods from a parent company may be , Tax Compliance, M&A. Looking Ahead Although the most recent survey data do not show a marked increase in the pay levels for Tax professionals, there are indications that, as the market for Audit and Finance jobs continues to heat up, we may start to see some corresponding acceleration acceleration, change in the velocity of a body with respect to time. Since velocity is a vector quantity, involving both magnitude and direction, acceleration is also a vector. In order to produce an acceleration, a force must be applied to the body. in the Tax area as well. Much of the evidence is anecdotal, but there are indications that companies, particularly the larger corporations, are experiencing difficulty in recruiting at the staff tax accountant level. As mentioned earlier, companies should adopt a total rewards approach to ensure all aspects of the total package are being considered. HOWARD LEVINE Le·vine , James Lawrence Born 1943. American pianist and conductor. He began his career with the Metropolitan Opera as principal conductor in 1973 and has since served as both music and artistic director. is a principal in the Performance Measurement and Rewards Practice of Mercer Human Resource Consulting. Before joining Mercer, Mr. Levine was with the Hay Group  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . , and was a labor relations representative at Newport News Newport News, independent city (1990 pop. 170,045), SE Va., on the Virginia peninsula, at the mouth of the James River, off Hampton Roads, near Norfolk; inc. 1896. Shipbuilding and Drydock Company. He received a bachelor's degree in Mathematics and Political Science from Tufts University Tufts University, main campus at Medford, Mass.; coeducational; chartered 1852 by Universalists as a college for men. It became a university in 1955. Jackson College, formerly a coordinate undergraduate college for women, merged with the College of Liberal Arts in , and a master of management degree from Northwestern north·west n. 1. Abbr. NW The direction or point on the mariner's compass halfway between due north and due west, or 45° west of due north. 2. An area or region lying in the northwest. 3. University's J.L. Kellogg Graduate School of Management. This article is adapted and updated from a presentation to TEI's 2005 Senior Tax Executive Conference.
Exhibit 1--Top Corporate Tax Executive
(Companies with Revenues of between $1 and $5 billion)
Base Salary
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $134.4 -- $141.2 --
2001 142.3 5.9% 146.1 3.5%
2002 137.9 -3.1% 144.1 -1.4%
2003 154.7 12.1% 153.7 6.7%
2004 145.2 -6.1% 156.1 1.6%
2005 164.0 13.0% 167.0 7.0%
Total Cash Compensation
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $168.0 -- $177.0 --
2001 174.4 3.8% 180.0 1.7%
2002 162.3 -7% 175.8 -2.3%
2003 184.9 13.9% 186.5 6.1%
2004 178.2 -3.6% 195.8 5%
2005 199.4 11.9% 212.2 8.4%
Exhibit 2:
Top Corporate Tax Executive
(Companies with Revenues of between $5 and $10 billion)
Base Salary
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $171.5 -- $170.3 --
2001 165.0 -3.8% 167.4 -1.7%
2002 162.4 -1.6% 162.3 -3%
2003 178.4 9.9% 185.1 14%
2004 191.5 7.3% 199.0 7.5%
2005 213.3 11.4% 214.6 7.8%
Total Cash Compensation
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $205.7 -- $206.7 --
2001 196.6 -4.4% 211.0 2.1%
2002 198.2 +.9% 200.7 -4.9%
2003 234.1 18.1% 247.2 23.2%
2004 226.5 -3.2% 291.4 18%
2005 282.6 24.8% 304.3 4.4%
Exhibit 3:
Top Corporate Tax Executive
(Companies with Revenues Greater than $10 billion)
Base Salary
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $191.0 -- $203.3 --
2001 208.2 9% 211.0 3.8%
2002 200.0 -3.9% 206.8 -2%
2003 202.4 1.2% 208.2 .6%
2004 187.5 -7.4% 210.6 1.2%
2005 231.0 23.2% 251.6 19.5%
Total Cash Compensation
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $241.7 -- $281.3 --
2001 250.0 3.4% 284.5 1.1%
2002 227.9 -8.9% 262.3 -7.8%
2003 251.6 10.4% 277.8 5.9%
2004 258.3 2.7% 289.4 4.2%
2005 350.3 35.6% 368.7 27.4%
Exhibit 4
Tax Compliance Manager
Base Salary
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $191.0 -- $203.3 --
2001 208.2 9% 211.0 3.8%
2002 200.0 -3.9% 206.8 -2%
2003 202.4 1.2% 208.2 .6%
2004 187.5 -7.4% 210.6 1.2%
2005 231.0 23.2% 251.6 19.5%
Total Cash Compensation
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $241.7 -- $281.3 --
2001 250.0 3.4% 284.5 1.1%
2002 227.9 -8.9% 262.3 -7.8%
2003 251.6 10.4% 277.8 5.9%
2004 258.3 2.7% 289.4 4.2%
2005 350.3 35.6% 368.7 27.4%
Exhibit 5:
Tax Research Manager
Base Salary
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $81.9 -- $85.6 --
2001 90.0 9.9% 95.8 11.9%
2002 87.5 -2.8% 91.5 -4.5%
2003 93.1 6.4% 103.3 12.9%
2004 96.0 3.1% 102.6 -.7%
2005 102.9 7.2% 103.2 .6%
Total Cash Compensation
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $90.0 -- $95.8 --
2001 100.0 11.1% 108.5 13.3%
2002 95.8 -4.2% 101.4 -6.5%
2003 101.8 6.3% 119.3 17.7%
2004 102.6 .8% 127.9 7.2%
2005 115.6 12.7% 120.7 -5.6%
Exhibit 6:
Tax Manager
Base Salary
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $76.3 -- $82.6 --
2001 80.0 4.8% 82.2 -5%
2002 83.1 3.9% 85.0 3.4%
2003 84.8 2% 88.4 4%
2004 89.3 5.3% 91.8 3.9%
2005 90.0 .8% 92.3 .5%
Total Cash Compensation
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $83.0 -- $92.1 --
2001 87.0 4.8% 89.7 -2.6%
2002 91.2 4.8% 93.9 4.7%
2003 91.9 .8% 97.5 3.8%
2004 97.0 5.5% 102.7 5.3%
2005 98.3 1.3% 102.0 -0.7%
Exhibit 7:
Senior Tax Acountant
Base Salary
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $57.0 -- $58.2 --
2001 59.2 3.9% 60.5 4%
2002 62.0 4.7% 62.7 3.6%
2003 64.6 4.2% 65.5 4.5%
2004 65.6 1.5% 67.0 2.3%
2005 67.0 2.1% 67.8 1.2%
Total Cash Compensation
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $59.0 -- $60.7 --
2001 61.4 4.1% 63.2 4.1%
2002 63.9 4.1% 65.5 3.6%
2003 67.1 5% 69.4 6%
2004 68.9 2.7% 71.6 3.2%
2005 70.8 2.8% 72.0 0.6%
Exhibit 8:
Tax Accountant--Intermediate
Base Salary
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $44.0 -- $45.5 --
2001 46.0 4.5% 47.7 4.8%
2002 48.1 4.6% 49.4 3.6%
2003 48.4 .6% 49.6 .4%
2004 50.6 4.5% 53.0 6.9%
2005 50.9 0.6% 52.6 -0.8%
Total Cash Compensation
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $44.9 -- $49.4 --
2001 47.0 4.7% 49.4 5.3%
2002 49.7 5.7% 50.9 3%
2003 50.0 .6% 51.2 .6%
2004 52.5 5% 55.2 7.8%
2005 52.6 .2% 54.7 -0.9%
Exhibit 9:
Tax Accountant--Associate
Base Salary
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $37.4 -- $39.8 --
2001 37.7 .8% 38.8 -2.5%
2002 40.0 6.1% 40.6 4.6%
2003 40.5 1.3% 41.7 2.7%
2004 42.9 5.9% 44.6 7%
2005 41.6 -3.0% 42.1 -5.6%
Total Cash Compensation
% change % change
Median vs. prior yr. Average vs. prior yr.
2000 $38.0 -- $40.5 --
2001 38.2 .5% 39.9 -1.5%
2002 40.9 4.7% 41.5 4%
2003 41.5 1.5% 42.8 3.1%
2004 44.4 7% 46.3 8.2%
2005 42.4 -4.5% 43.3 -6.5%
Exhibit 10:
Incentive
Compensation
2004 General
Industry Median
Annual Incentive
2004 Median (All Jobs--
Annual Incentive Comparable Salary
Tax Survey Position (as % of salary) Level) *
Top Corporate Tax Executive 42% 36%
($10 billion and higher)
Top Corporate Executive 30% 36%
($5--$10 billion)
Top Corporate Tax Executive 24% 25%
($1--$5 billion)
Tax Compliance Manager 16% 13%
Tax Research Manager 16% 13%
Tax Manager 14% 13%
Tax Accountant--Senior 8% 8%
Tax Accountant- Intermediate 6% 7%
Tax Accountant--Associate 7% 6%
* Mercer's Short-term Incentive Compensation Survey
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