2017 Engineering & Architecture C-Level Compensation Report

Transcription

1 2017 Engineering & Architecture C-Level Compensation Report We are pleased to release the 2017 Engineering and Architecture C-Level Compensation Report. This report was conducted by the Smith Consulting Group, a member of the Sanford Rose Associates network of offices. The Smith Consulting Group is an independently owned and operated office of Sanford Rose Associates International, Inc., an organization in its 50th+ year of offering executive search services. For more than a decade we have specialized in talent acquisition within this niche market: Placement of licensed professional engineers and registered architects within the consulting engineering and architecture arena. We hope you find our report helpful as you compare our compensation data to your own. We hope to connect with you as a valued partner. 180 West Michigan Ave Suite 501 Jackson, MI info@thesmithgroupmi.com (517)

2 Our report shows the majority of C-Level leaders have the title of President (nearly 2/3) while the role of CEO is held by over 1/3 of our respondents. In the engineering and architecture space the data shows presidents are more prominent in the industry. Our average C-Level executive in the engineering and architecture space has more than 26 years of leadership experience and none had less than 10 years of experience. This chart illustrates the depth of experience our industry has in leadership and offers supporting data that our C-Level talent pool has a good mixture of tenure and as our industry continues to grow. In our report the primary location where C-Level executives are located is in the south with 60% and half of that represented by the north east with 35%. 1

3 There is an extensive amount of design, engineering and technical work that goes into the construction of a project. These are companies that provide these and many other construction, environmental, consulting and project management services used in both private and public sector projects. Most of our respondents are from Privately held companies at 98%. 87% of our respondents make up to 10 million in revenue with only 13% making more. With the civil engineering and architecture space growing and with the prediction that the overall employment of civil engineers will grow 8 percent from 2014 to 2024, it follows in suit that these revenue statistics will also rise in the coming years. Of the respondents in this survey, the number of employees in the firms surveyed varied. The highest percentage of respondents was 59% with companies having employee s. Followed by this was 20% of respondents with companies with employee s. 2

4 This chart represents the titles by function that report to the President/CEO. Most have a core team of leaders that drive revenue (sales), provide financial reporting (CFO) and operations (COO) a surprisingly smaller number of executives report to the President/CEO which varies from company to company but helps set the culture for the President/CEO. When you evaluate this chart you see that 86% of those surveyed have a base salary between 100K 250K. On the other hand in the space 13% have a base salary between 251K- 400K. Only 12% of those surveyed actually noticed an decrease in salary and 88% saw an increase or their salary stayed the same. While almost 1/2 of our executives received no change in their base salary that doesn t always mean it s necessarily negative news. Most CEO s that are growing top line revenues and EBITDA are also increasing the value of the companies they lead so they are probably opting for additional equity grants instead of an increase in their cash compensation. 3

5 This chart has an interesting mix of bonus payouts with 33% seeing less than a 25% cash bonus. Another surprise in the data is that over 25% are receiving cash bonuses based on equity-based performance. This chart shows there is quite a difference in the market in regard to cash bonuses. This chart follows in suit to the chart above in regard to the variety of C-Level executives who have seen their compensation progress since the recession. The C-Level civil engineering leadership is made up of C-Level executives who have Bachelor s and Master s Degrees. Typically, as those companies scale the founders usually make room for an experienced CEO with broad executive skills and an undergraduate degree or an MBA who can lead the company to its next level of growth. Those two camps are evenly divided in this report. (The orange bar data and the blue bar data are to be combined for the report) 4

6 Another interesting statistic is tenure. We knew these numbers would look interesting. Of those surveyed, 88% have been with the company for more than 10 years and only 12% having been there less than 10. Overall longevity on tenure is normal in this space because civil engineering and architecture is such a niche market. Over 1/3 of the executives we polled are satisfied in their current position while roughly another 1/3 surveyed are somewhat satisfied or neutral. Overall, those are pretty good numbers. Only 4% of those surveyed are very dissatisfied or somewhat dissatisfied. All in all our C-Level civil engineering and architecture executives are satisfied with their compensation package. 5