PRM Consulting Group

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

Washington, D.C., September 20, 2012 – According to the 2012 edition of PRM Consulting, Group’s (PRM) 31st  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 2011 and 2012 calendar years.

For four key not-for-profit executive positions, average base salaries increased by 5.6% to 19.3% over the prior year, or a pay change of about 10.7% for all positions combined:

Survey Position

Average Base Salary

Percent Increase

2011

2012

Top Executive Officer

$319,700

$340,400

6.5%

Top Administrative Executive

$151,700

$181,000

19.3%

Top Financial Executive

$155,400

$173,200

11.5%

Top Development Executive

$146,000

$154,200

5.6%


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 2011, while 30% are planning for a salary freeze during 2012.  Additionally, among the survey respondents who anticipate a salary freeze for the upcoming calendar year, approximately one-fifth 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 2012, salary increases for the Top Executive Officer were typically about 0.5% to lower, on average, which is on par with other employees. PRM’s 2012 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 2012 survey report is available.  For additional information, please contact:

Christian Britton
Compensation Consultant
PRM Consulting Group
202-745-3708 (Phone)
202-745-3701 (Fax)


20-Sep-2012

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