In our annual Salary Report, ID attempts to examine more than just dollars and cents. While this study looks at the average compensation, bonus structures, commission, and benefits of our readers, it also aims to take it a step further and ask some tough questions around job satisfaction, fairness, and whether re- spondents feel they face growth opportunities. It’s more than just paychecks here — it’s the whole ball of wax. Before we get to the industrial distributors, it seems fitting to take a quick look at the latest averages in the United States in or- der to set a baseline for an outlook on typical rates of overall com- pensation. With unemployment and job growth a relative see-saw over the preceding months, just where does the average populace sit with wage rates? According to a May 2013 report on jobs by USA Today, hourly wages ticked up four cents in April, rising at about the same two percent annual pace since mid-2009. But, says the report, “taking inflation into account, they’re virtually flat. Workers who rely on paychecks for their income have been run- ning in place, financially speaking. Adjusting for inflation, an aver- age worker who was paid $49,650 at the end of 2009 is making about $545 less now — and that’s before taxes and deductions.” So are Industrial Distribution subscribers also seeing more of the same? We asked our readers – a group comprised of C-level and mid-level management, as well as sales-related job titles – to tell us what’s happening at the ground level. Distributed via email, the 2013 Industrial Distribution Salary Report survey again fun- neled respondents into three separate question pools based on where they identified their specific job functions. The following results are based on three separate sets of data from C-level execu- tives (Owner, Chairman, CEO, CFO, CIO, COO, President, or VP); mid-level (non-sales) management (Product, Operations, Branch, Purchasing); and sales representative/manager. The split came in at 33.6 percent C-level, 34. 6 percent non-sales management, and 31. 9 percent sales/sales management.
This year’s C-level group has broadened a bit over last: our 2012
report yielded a pool of nearly 99 percent males; this year’s group
is 93 percent. In addition:
• The age range was a bit more diverse, with 25 percent under
the age of 50 — compared to last year’s group of only 16 percent
identifying as under 50.
• Most come from distributorships on the smaller end of the scale.
Nearly 62 percent represent companies of less than $25 million
in annual revenues. Rounding things out, 21 percent come from
companies in the $25 to $100 million range; 14 percent from $100
to $500 million companies; and four percent above $500 million.
• The education level in this group is high. Only 5. 5 percent say
they have no college education, with the majority having a college degree or some college. Eighteen point three percent have a
graduate degree of some type.
• The largest segment ( 42 percent) hail from the Midwest, 18
percent the South, 17 percent the Northeast, and 16 percent the
West. Just over six percent represent companies located outside of
This year’s group of C-level executives cited a lower base rate salary than last year’s, however some of the changes in age bracket may have affected this number. This year’s base – which averaged out to about $180K – is lower than last year’s by about 18 percent; the average amount of ad- ditional compensation (bonuses, 401K, education reimbursement or other additional cash) came in similar to that reported last year — around $100K. It’s possible, as younger persons begin filling the positions at the executive level, that their salaries will start lower and be weighted heavily on incentives and pay-for-performance. We saw a slight shift in the demographic data that indicated to us that some of these executive level positions are turning over: For example, last year our response group said they’d worked in the industry for just over 30 years, on average. For this year’s group, the average tenure is 28. 5 years. Another factor is the fact that one in five respondents said they’ve received some type of salary or benefits cut in the past year. This is likely an influence on the data, as is some of the significant size disparities between the companies represented by some of our respondents. Perhaps more telling, the median base salary (the central point of the set) comes in at $140,000. Regardless of the overall number, the C-level group is definitely
In the past year, have the
demands of your job...