Got Salary Envy?
It has been another year of increasing challenges and opportunities for book publishing executives as manufacturing and distribution costs escalate, and the media landscape shifts and shimmies before our very eyes. As costs continue their steep incline and new opportunities on the digital horizon demand more and more attention, many of you have been increasingly tasked with wearing additional hats—whether you’re the president, the head of operations or manufacturing, the production director, marketing director, or just about any other position. While publishing has never been a cakewalk (for most, anyway), it seems that now is a time when you certainly need to earn your keep. And, many of you may wonder—now, more than ever—“Should I be paid more for my hard work?” Maybe you’re wondering, “Am I paying my best production manager a competitive salary (in this region of the country) for all this work?” or “What kind of raises are the norm in the industry right now?”
Book Business’ second annual Book Industry Salary Guide, conducted by independent research organization Readex Research, will help you find answers to those questions and many more.
Gender Gap: Men Still Earn More Than Women
This year’s study shows that men average $100,800 in total annual compensation (base salary plus bonuses and other cash compensation), while women average $70,700. The difference between the two is almost double what last year’s study found: In 2007, the average total annual compensation was $79,200 for men, and $62,800 for women.
Why such an increase this year in the amount men are making over women? Unfortunately, the data can’t answer that, but the increase does prompt a look at who responded to the study both years. More women than men participated this year, while last year, men outnumbered women. This year’s study was comprised of 53-percent women and 46-percent men (one percent did not respond), while last year’s study was comprised of almost the reverse: 46-percent women and 54-percent men.
According to the study, men also reported larger bonuses and other cash compensation than women. Twenty-one percent of men brought home annual bonuses of $10,000 or more during the 12 months ending April 1, while 13 percent of women reported the same bonus compensation. Eighteen percent of men and 17 percent of women reported bonuses of $2,500–$9,999.
Slightly more men (52 percent) than women (48 percent) received additional cash compensation.
The Highest-Paying Positions
It’s no big surprise that corporate/business management positions are among the highest paying in the industry—probably most industries, at that.
The job categories of “president, CEO, COO, CFO” and “executive vice president (VP)” were the only two categories with average salaries over $100,000, with both averaging around $150,000.
The group that includes presidents reported an average total annual salary of $143,400, while the “executive VP” group reported an average total annual salary of $155,700.
In last year’s study, “executive VPs” also reported a higher average salary than the “president, CEO, COO, CFO” group. One possible explanation is that regardless of company size, the company will have a president; so presidents at smaller companies (with lower salaries) would bring down the average. Smaller companies may not have executive VPs.
The study also showed that the median salary—the number at which exactly 50 percent are earning above and below this figure—for “president, CEO, COO, CFO” was $120,000, and for “executive VP,” the median salary was $127,500. Twenty-five percent of “executive VPs” reported making more than $217,500, while, for the group including presidents, this figure was $155,000.
The next highest-paying positions were “VP/director of manufacturing” (average total annual compensation of $94,200) and “VP/director of marketing” ($92,700).
Close on their heels was the “publisher, director, business manager” group, which reported average total annual compensation of $89,900.
Which Regions of the Country Pay the Most?
The Northeast region of the United States once again ranks highest on the salary scale. The average total compensation for respondents in the Northeast is $95,700, followed by the West, where executives average $86,800 in compensation. This year, the South ($74,300) just surpassed the Midwest ($73,800), while last year, the Midwest reported a higher average compensation than the South by nearly $8,000.
Across the country, average compensation has increased compared to the previous year.
Age: Older May Be Wiser … and Gets Paid More
Contrary to last year’s study findings, which showed that executives ages 40 to 54 reported earning an average of $6,000 more than those ages 55 and older, this year’s study found the average total compensation for executives ages 55 and older to be higher than those ages 40 to 54, as well as those under 40.
Does Size Matter?
According to the study, company size does play a factor in salary range. Executives from companies whose total 2007 revenue was $20 million or more (91 respondents) made an average of $6,500 more than those from companies with revenue of between $5 million and $19.9 million (68 respondents). They also made an average of $41,900 more than executives from companies with revenue below $5 million (136 respondents).
Post-Grads Earn the Top Salaries
Been thinking about going back to school to get that master’s degree? The study findings might be a little motivation for you. Executives with post-graduate degrees reported earning an average of almost $20,000 more than those with college degrees, and about $50,000 more than those with only high school diplomas.
Raises and Bonuses on the Rise?
Most executives (71 percent) reported that their total annual compensation increased this year compared to one year prior. (Last year, that figure was 61 percent.)
What raises were given? The largest percentage (34 percent) reported an increase in total compensation of 3 percent to 4 percent—or what most industries call “the industry standard.” That is 2-percent more than the number who reported the same increase last year. More respondents this year also reported increases in total compensation of 10 percent or more, as well as of 5 percent to 9 percent. The only category that dropped this year was those reporting an increase of less than 3 percent, which dipped slightly from 10 percent last year to 9 percent this year.
In this year’s study, 50 percent of respondents reported receiving additional cash compensation from their employer during the 12 months ending April 1. Last year, that figure was 44 percent.
The amount of compensation varied from less than $2,500 to $50,000 or more.