PRM Consulting Group

Survey Indicates Economy Has A Mixed Impact On Pay Levels For Not-For-Profit Executives

WASHINGTON D.C. (March 29, 2011) According to the 2010 edition of PRM Consulting, Group’s (PRM) 29th edition of their Management Compensation Report of Not-for-Profit Organizations annual compensation survey, salary increases for key executives in not-for-profit organizations showed mixed results but indicate a level to slightly improving outlook for the 2010 and 2011 calendar years.

For four key not-for-profit executive positions, average base salaries increased by 3.2% to 5.7% over the prior year, or a pay change of about 3.9% for all positions combined:

Survey Position

Average Base Salary

Percent Increase


           2009

           2010

Top Executive Officer

$295,600

$305,200

3.2%

Top Administrative Executive

$151,200

$157,300

4.0%

Top Financial Executive

$146,000

$154,300

5.7%

Top Development Executive

$138,300

$141,900

2.6%


However, the survey results also indicate actual salary increases for individual employees may vary widely depending on the organization’s actual financial results as well as broader economic conditions.  Approximately 40% of survey respondents last year indicated they anticipated implementing a salary freeze for 2010, while about 35% of them are planning for a salary freeze during 2011.  Additionally, among the survey respondents who anticipate a salary freeze for the upcoming calendar year, approximately one-third indicated the salary freeze applies only to the Top Executive Officer position.  Finally, the salary budget practices reported in the PRM survey indicate both current and anticipated increases for the Top Executive Officer – if any – are often the same as or only slightly higher than other employee groups.  Before 2009, salary increases for the Top Executive Officer were typically about 1.0% to 1.5% higher, on average, than the increases for other employees.

PRM’s 2010 compensation survey provides comprehensive pay statistics on a total of 100 distinct positions for all types of not-for-profits nationwide, including trade associations, professional societies, educational organizations, health and social welfare organizations, and other not-for-profits such as research institutes, foundations, and public policy organizations.  The survey also includes information on supplemental benefits and perquisites by staff level.  Compensation practices information, such as salary increase budgets, employee benefits, paid time off, and Board member compensation practices, are summarized by organization type. 

PRM Consulting Group, Inc is a full-service human resources consulting firm headquartered in Washington, DC, and with offices in Maryland, Virginia, New Jersey, the Chicago area, and Atlanta.  PRM specializes in consulting to the not-for-profit sector and provides advice, design, implementation, and administration assistance in such areas as pay, benefits, performance measurement, organization development, change management, staffing, recruiting, training, and workforce diversity.

A complimentary press copy of the 2010 survey report is available.  For additional information, please contact:

Lyn McCloskey, Principal
PRM Consulting Group
202-745-3713 (Phone)
202-745-3701 (Fax)
http://www.prmconsulting.com


29-Mar-2011

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