Contents. Manufacturing Report

Transcription

1 Contents Page Introduction 5 Profile of Respondents 7 Executive Compensation Comparison 11 CEO Year-to-Year Comparison 12 Inside & Outside Director 13 Chief Executive Officer 15 Operating Officer 19 Executive Multi-Function Responsibility 23 Engineering/Research Executive 27 Financial/Accounting Executive 31 Sales/Marketing Executive 35 Human Resource Executive 39 Manufacturing Executive 43 Material/Purchasing Executive 47 Quality Control Executive 51 Information Systems Executive 55 Appendix 59 More Valuable Business Reports 61 Order Form 63 Addendum Executive Compensation Sample Survey 1

2 Profile of Respondents Of the XXX responding companies, XX or XX%, were defined as contract manufacturers, while XX, or XX%, are end-product manufacturers. Subchapter S Closed Corporations are the leading type of ownership among XX% of participating companies followed by Closed Corporations (stock held by closed group and not available to the public) at XX%. A total of XX% of respondents reported that their companies are single-unit organizations with no divisional or subsidiary operations. The second largest group of respondents (XX%) were reported as headquarters, offices of companies with one or more divisions or subsidiaries. Type of Ownership Type of Organizaitonal Unit 2

3 Profile of Respondents (cont d) More than half of respondents are split between companies with sales of $10-$19 million (XX%) and $20-$50 million (XX%). Smaller percentages are companies with less than $5 million (XX%), $5-$9 million (XX%) and more than $50 million (XX%). Companies with 50 to 99 and 100 to 249 employees each comprised XX% of participants, followed by companies with less than 50 at XX% and companies with more than 250 employees at XX%. Annual Revenues in Millions Number of Employees 3

4 Profile of Respondents (cont d) The vast majority of companies, XX%, review base executive salaries on an annual basis. Other companies prefer to have no set times for reviews (XX%). Bonuses are awarded annually (XX%), quarterly (X%), semi-annually (X%) and monthly (X%). Cash bonuses are used by XX% of the companies for executives and department heads. Only X% of participating companies limit cash bonuses to the chief executives and/or chairman levels of their companies, XX% to all officers and XX% of participants have no bonus plan. Review Schedule Eligibility for Cash Bonus 4

5 Executive Compensation Comparison The relationship between the average base compensation of executives and department heads expressed as a percentage of the average base compensation of chief executive officers provides basis for long-term comparison. Over the past 15 years, the most significant change in base compensation has occurred in the executive multi-function title, where the average rose from XX% of CEO compensation in 1993 to XX% in 1998 and XX% in Other titles where the percentage has increased significantly over a 15-year period include: engineering/research XX% to XX%; financial/accounting XX% to XX%; and manufacturing XX% to XX%. Chief Executive Officer Operating Officer Executive Multi-Funtion Engine ering/r esearch Financial/Accounting Sales/Marketing Human Resource Manufacturing Materials/Purchasing Quality Control Information Systems 5

6 Chief Executive Officer Overall base salaries for chief executive officers have decreased slightly in the past year. This decrease is noticeable when comparing the mean in the 2007 report ($XXX,XXX) to the base salary in 2008 ($XXX,XXX). Base Salary Chief Executive Officer In Thousands Position Summary: The chief executive officer determines the basic objectives of the organizational unit, formulates plans and policies, and allocates resources for the achievement of these objectives. Interprets and applies policies established by the owners of the enterprise or their representatives (Board of Directors, Trustees, etc.). Organizes the unit and determines allocation of duties and authorities to subordinates. Exercises controls to see that objectives are achieved in accordance with basic organization policy. Fully accountable for the results of the activity of the organizational unit. Typical position titles include: chairman of the board, president, vice president, general manager, executive director, etc. This is usually a single incumbent position. 6

7 Chief Executive Officer (cont d) Sales in Millions Base Salary # of Rates Cash Bonus # of Rates Less than $5 $5 - $9 $10 - $19 $20 - $49 More than $50 All Categories Combined Other Cash Payments Total Compensation # of Rates % of Stock () Less than $5 $5 - $9 $10 - $19 $20 - $49 More than $50 All Categories Combined All reported data is in the Thousands for each category above. N/D = Not Enough Data Available Data for the and measure was reported when 10 or more companies submitted information. 7

8 Chief Executive Officer (cont d) Employee Size of Firm Base Salary # of Rates Cash Bonus # of Rates Less than More than 250 All Categories Combined Other Cash Payments Total Compensation # of Rates % of Stock () Less than More than 250 All Categories Combined All reported data is in the Thousands for each category above. N/D = Not Enough Data Available Data for the and measure was reported when 10 or more companies submitted information. 8

9 Chief Executive Officer (cont d) As expected, the CEO enjoys the greatest range of company-paid benefits. Benefits Received Periodic Special Physical Exams % of Executives # of Executives Benefits Received % of Executives # of Executives Results to Executive Only Automobile Results to Organization Only Organization Owned Results to Organization and Executive Organization Leased Not Provided Reimbursed / Allowance Types of Club Memberships Not Provided Business / Lunch Club Additional Deferred Compensation Country Club Deferred Bonus Athletic / Health Club Deferred Profit Sharing Not Provided Income Deferred by Employment Contract Club Membership Expenses Paid Not Provided Initiation Fees Special Insurance Regular Dues Additional Life Insurance Other Club Charges All-Expense Medical Insurance Not Paid Special Travel / Accident Insurance Retirement Plan Special Disability Income Continuation Defined Benefit Not Provided Defined Contributions Stock Purchase Plan Available 401(k) Stock Options Profit Sharing Incentive Stock Options Other Non-Qualified Options ESOP Combination Incentive/Non-Qualified Non-Qualified Not Provided Not Provided 9

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