DC Velocity - May 2011

Salary by title

er the position on the corporate ladder, the higher the compensation. However, as Exhibit 1 shows, there was one exception to that rule this year. While you’d ordinarily expect to find company presidents pulling down more than vice presidents, in this case, it was the other way around. The average salary for the vice presidents who participated in our study was $150,259, while the average salary for the presidents was $143,056.

Another factor that holds significant sway over salaries is geography. As Exhibit 2 shows, there was wide variation in the average salaries reported in different regions of the country. Past surveys have found a close connection between pay scales and the cost of living in various locales. This year was no exception: The highest average salaries were found in New England ($117,504) and the West ($108,530), areas known for being expensive places to live.

Education also counts when it comes to pay. This year’s study once again confirmed that the longer you stay in school, the greater your earning power (see Exhibit 3). The average salary for logistics professionals who had earned a Ph.D. was $165,833, while the average pay for those whose formal education ended with high school was $83,655.

Not surprisingly, the study also showed a clear and direct correlation between years of experience in the logistics profession and salary. As Exhibit 4 shows, respondents with more than 25 years’ experience in the business command a significant premium for their expertise. The average salary for this group was $114,066, compared with just $77,725 for those who’ve been in the field five years or less.

In addition to education and years in the profession, age plays a role in determining the size of a logistics professional’s paycheck. This year’s survey found that salaries increased with age—but only up to a point. As Exhibit 5 shows, that point occurs somewhere around age 60. While respondents aged 56 to 60 earned $119,459 on average, those over 60 brought home a more modest $111,812—a possible indication that some members of this group have transitioned to part-time or semi-retired employment status.

Title

Vice president Corporate officer President Director Manager Supervisor

Average 2011

$150,259

$196,046

$143,056

$116,335

$83,488

$65,314

Average 2010

$146,309

$177,458

$138,518

$115,597

$82,808

$64,017

EXHIBIT 2

Salary by region

Region
West
Middle Atlantic
Southeast
South
New England
Midwest
Canada
Mexico

Average 2011

$108,530

$103,417

$104,443

$103,292

$117,504

$96,093

$83,101

$81,800

Average 2010

$108,170

$99,514

$103,616

$95,616

$109,515

$92,724

$82,375

$80,125

EXHIBIT 3

Salary by education

MIND THE GAP

As has been the case with our previous salary surveys, the latest study showed that when it comes to pay, the gender gap persists. Despite a multi-decade push for pay equity,