Construction executive salaries increased an average of 4.6 percent in 2008, according to the latest
Contractor Compensation Quarterly published by PAS, Inc. Although last year's increase was not as significant as the 5.4 percent increases reported in 2006 and 2007, buying power for those executives who received raises still rose in 2008, as the inflation rate remained unchanged at zero percent.
Anticipated increases reported to PAS indicate that construction executives given raises in 2009 will receive an average increase of 4.35 percent, which equates to an overall average of 3.7 percent when companies anticipating increases of zero percent are taken into account. Based on past practices, however, PAS projects that increases will actually average 4.0 to 4.7 percent by the end of the year. These increases are substantially higher than the 3.1 percent average increase across all U.S. industries forecasted by WorldatWork.
The following table shows the average base salary for benchmark positions in construction paid in 2008 and anticipated in 2009, as reported by PAS:
| Position |
2008 |
2009 |
| Board Chairperson |
$283,000 |
$285,000 |
| Senior VP |
169,000 |
170,000 |
| VP of Operations |
142,000 |
142,000 |
| VP of Estimating |
128,000 |
130,000 |
| General Superintendent |
110,000 |
112,000 |
PAS's complete Executive Compensation Survey for Contractors report - which also covers fringe benefit information and breaks data down by type of construction, geographic location, company revenue, and other characteristics - is available for purchase from PAS.
For more information, go to www.pas1.com, or call 1-800-553-4655 and ask about the AGC-member discount.
Jeff Robinson, president of PAS, Inc., will co-present "Maintaining a Strong Compensation Plan During Tough Times" at AGC's HR Professionals Conference in Atlanta, GA, October 27-29, 2009. Mark your calendars and stay tuned for more details.