In-Depth

ESJ Salary Survey 2012 Part 1: Management Salaries

Management salaries rise; managers overseeing service-oriented architectures and business analytics shops command highest premiums.

• 08/06/2012

Service-oriented architecture (SOA) is not played up at conferences as much as it was a few years ago and is past the hype stage among IT vendors. However, it clearly is in the working implementation phase at many companies, and forms the foundation that supports many of today's cloud, mobile, and big data initiatives. It's fitting, then, that IT managers overseeing SOA-enabling efforts are now commanding premiums from their employers.

In addition, there are now many glimmers of salary growth emerging from what is still a rocky economy. Base salaries across all the nine key IT management positions covered in our survey have increased over the past year. In addition, eight of the nine positions in this year’s survey have increased bonus compensation. Interestingly, the highest-level executives in the survey had the smallest year-to-year increases.

These are among the findings of the latest Enterprise Systems survey of 1,187 IT professionals and managers, conducted in May 2012. The survey covered nine key management positions, along with nine key IT staff positions (to be covered in the next installment of this report). Respondents were asked to fill in data on their own positions as well as other positions across their companies where they have salary knowledge.

The fact that all positions had increases in average salaries contrasts with recent years in this survey series, in which most positions declined from year to year. In some cases, positions have regained income lost during the economic downturn that began between 2008 and 2009.

Although CIOs and IT directors -- the two top positions in the survey -- drew the highest base salaries and bonuses, their increases were the most modest of the the nine key management positions. Enterprise architects saw the largest jump in salary (up 10 percent), and Internet managers received the largest hikes in bonus levels (up 55 percent).

The survey also found that salaries were higher across the board for IT management professionals engaged in application areas such as SOA, business intelligence and analytics, and enterprise resource planning (ERP). In fact, across seven of the nine IT management positions covered, those overseeing sites practicing SOA had the highest average salaries.

Cloud and mobile computing continue to be hot topics of discussion across the IT landscape, but IT managers working with these platforms aren't necessarily seeing higher pay levels. Managers at sites adopting both mobile apps and public cloud report the lowest base salaries by application types. Respondents working in private cloud environments tended to have somewhat higher average salaries.

As in previous years, the survey found that IT managers and executives at mainframe and Unix sites tend to have the highest salaries; those in more distributed environments (such as Windows or Linux servers with no mainframe) tend to see much lower salaries.

This first of two reports based on the Enterprise Systems salary survey looks at the results for executive and management-level salaries in 2012. In the next installment, we will look at IT staff-level positions.

OVERVIEW OF IT MANAGEMENT SALARIES, BONUSES AND INCREASES, 2011-2012

CIO AND VICE PRESIDENT OF IT

Salaries for the top executives in IT held steady over the last year, at an average base rate of $144,600. Base salaries reported in this article do not include bonuses (which are addressed separately), stock options, or benefits.) However, top IT executive salaries are still down from their 2008-2009 peak of $150,340, reflecting the aftermath of the recent recession.

CIO and IT vice president's bonuses have also remained constant over the past two years, currently averaging $19,440 among those companies awarding bonuses. However, this still lags the levels seen in the middle to latter part of the last decade, when CIOs and VPs received average annual average bonuses topping $34,000.

CIOs and VPs drew the highest base salaries and bonuses of the 18 positions covered in this year's survey. However, they saw among the most modest increase among the nine IT management positions covered in the survey. CIOs and VPs saw an increase in average bonus amounts by about 6.2 percent over 2011's tally, making this the smallest increase of the eight out of nine positions that saw increases.

The typical CIO or top IT executive in our survey has 16 years of experience on the job. On average, CIOs with more experience -- at least a decade on the job -- earn about 36 percent more than their less-experienced counterparts.

CIOs overseeing environments with digitized or automated supply-chain management environments drew the highest base salaries, averaging more than $183,000. Those CIOs at sites with enterprise resource planning (ERP) implementations follow with close to $178,000. CIOs at sites with service-oriented architectural approaches ranked third, paying CIOs base salaries averaging about $175,000.

By operating system environment, CIOs in midrange computing shops (including IBM System i and comparable systems) received the highest premium, with an average rate topping $203,000. Mainframe shops follow closely behind, paying CIOs more than $201,000 in base salaries.

CIO/VP SALARIES

INFORMATION SYSTEMS DIRECTOR

The salaries of CIOs' direct reports -- IS (or IT) directors -- remained essentially flat over the past year. Overall, IS directors -- who plan, direct, and control all day-to-day IT functions and oversee entire departments -- made an average base salary of just over $115,000 a year, virtually the same as in last year's survey.

Although there was also a retreat in bonuses for these executives -- down more than five percent from the 2011 survey -- they still remain near the peak levels seen right before the economic downturn of 2008-2009. The typical average bonus reported for IS and IT directors stands at $13,800.

IS directors’ salaries rank second among the nine management positions covered in our survey, and also second in terms of bonus amounts. However, they had the smallest average raises in base pay, and theirs was the only position to see a reduced bonus over the past year.

On average, the IS directors covered in our survey have about 15 years of experience. IS directors with 10 or more years of experience make more than 36 percent more than those in the first 10 years on the job. An IS director with fewer than 10 years experience can expect to make about $89,000 a year in base salary, a figure that climbs to close about $121,000 for those with at least a decades' worth of experience.

IS directors in charge of sites supporting service-oriented architecture-based projects command the highest base salaries among their peers, averaging more than $132,000, or about 15 percent above the average. Those overseeing data warehouse sites and business intelligence and analytics configurations follow with about $128,000 a year and $127,400, respectively.

By operating system environment, mainframes are the greatest area of opportunities for IS directors, who draw premiums of almost 25 percent in these environments to boost their average base pay to more than $143,000. Overseeing midrange and Unix systems environments also mean higher-than-average base salaries, at $137,830 and $136,500 respectively.

IS DIRECTOR SALARIES

INFORMATION SYSTEMS MANAGER

The average base salaries of IS managers -- those who oversee the day-to-day operations of their enterprises -- crept up modestly over the past year, reversing a downward trend seen since 2009. The average information systems manager -- who plans and approves equipment and software purchases, as well as oversees day-to-day activities -- now stands at close to $97,000, up about two percent from last year.

IS managers' pay levels may be growing very slowly, but they are being rewarded in a big way through bonuses. On average, bonuses for IS managers were close to $11,000 over the course of the year. This year's bonus, in fact, is the highest level seen for this position since the first survey was conducted in 2001.

IS managers' salaries rank fifth in salary levels among the nine management positions covered in our survey, and third in terms of bonus amounts. IS managers' raises were modest in comparison to most of the positions covered.

The average IS manager reported in this survey has about 13 years of on-the-job experience. Those in their first decade average about $80,000, a figure that jumps to almost $103,000 after 10 years.

As with their higher-ups in the organization, IS managers involved in sites building applications on top of service-oriented architecture are the most highly compensated, with average base pay at more than $106,000 a year. Those IS managers overseeing sites with business intelligence and analytics capabilities are earning rates close to $105,000, and IS managers charged with building or maintaining private clouds are drawing more than $102,000 annually.

By operating system environment, IS managers in mainframe and Unix shops lead, earning a base of close to $112,000 a year, or more than 15 percent above the average for all platforms.

IS MANAGER SALARIES

APPLICATION DEVELOPMENT MANAGERS

With the onset of the economic downturn of 2008-2009, application development managers' salaries drifted lower but have now bounced back. Average base salaries now stand at about $99,500, just shy of the $99,800 average seen three years ago. Overall, base salaries on average jumped by seven percent over the past year. AD managers plan, direct, and control all day-to-day application development functions, applications programming and project scheduling.

AD managers' bonuses are continuing on the sharp upward climb started last year. This past year, those eligible for bonuses received, on average, close to $10,300 -- up by more than a third over the past year. Bonus amounts were up by more than a third the year before as well. AD managers' salaries rank fourth among the nine management positions covered in our survey, and fourth in terms of bonuses. These managers also had the third-largest increase in annual base salary, as well as the second-highest increase in bonus levels (up 33.5 percent).

The average AD manager has about 13 years of experience on the job. These managers can expect to see salary growth of up to 40 percent in the first decade of their careers. Currently, AD managers in the first decade of their careers make about $77,000, a level that rises to more than $106,700 for those with at least 10 years of experience.

As with their IT executive and management counterparts, those application development managers engaged in operations involving service-oriented architecture, business intelligence/analytics, and ERP systems draw the highest average base salaries. Those AD executives overseeing SOA-based implementations top the list, exceeding $106,000 a year.

By operating system environment, mainframe application developer managers are faring best in terms of salaries, our survey finds. Those AD managers involved with mainframe shops top the list, drawing more than $113,000 annually, followed closely by those at Unix sites with about $112,800.

APPLICATION DEVELOPMENT MANAGER SALARIES

DATA CENTER/OPERATIONS MANAGER

Although data center managers' average base salaries have not returned to the level seen when the recession of 2008-2009 hit, there has been a solid upward trend over the past year. Currently, data center and operations managers -- who oversee day-to-day operations of data center environments -- saw more than a five percent increase in average base salaries since last year, our survey finds. Data center managers now make about $92,700, not counting bonuses and benefits -- compared to last year’s average of about $88,000. Salaries for this position peaked in 2009 at $97,000, just as the full brunt of the recession was being felt.

Data center managers' base salaries may have plateaued, but employers are making up by compensating their hard work in the form of increasingly generous bonuses. Annual average bonuses for eligible data center managers, in fact, are at the highest level seen since this job category was first covered in 2002 salary survey. These bonuses now average more than $8,700 for the year -- a nearly 23 percent jump over last year's average.

DC managers' salaries rank sixth among the nine management positions covered in our survey, and fifth in terms of bonus amounts.

Data center managers in our survey have about 13 years of experience. The more experienced managers (with more than a decade on the job) are drawing salaries of close to $100,000, a 34 percent rise from their entry-level counterparts.

Data center managers overseeing ERP and analytics systems environments are receiving the highest base pay, averaging more than $103,000 in each category. Those DC managers overseeing sites employing service-oriented architecture follow closely at just over $102,000 in base pay.

Those DC managers overseeing Unix sites also commanded higher average salaries, bringing in more than $112,000 over the past year. Those at mainframe sites follow closely at close to $111,000.

DATA CENTER/OPERATIONS MANAGER SALARIES

NETWORKING MANAGER

Average base salaries of networking managers have bounced back to the peak level seen two years ago. Currently, network managers -- who oversee the operation and planning of computer networks -- earn about $88,700, up more than five percent from 12 months ago, and back to the 2010 average.

This past year was a good one for networking managers, who had an increase in base salaries as well as a sizable increase in bonuses. This year, the average annual bonus reported for eligible networking managers was close to $7,000 -- a one-third jump over the $5,200 they received a year ago. This past year's average bonus is the highest recorded for this position since it was first included in the survey 10 years ago.

Networking managers' salaries rank eighth among the nine management positions covered in our survey, and also eighth in terms of bonus amounts.

Networking managers, who average about 12 years of experience on the job, can expect to see salary growth of nearly 21 percent throughout their careers, the survey finds. Currently, networking managers in their first decade on the job (with fewer than 10 years of experience) make about $77,000, a level that rises to more than $93,000 as time goes on.

As with most other IT management positions this year, networking managers overseeing sites built on service-oriented architecture are being paid top dollar, averaging more than $98,000 in base pay. Those networking managers involved in analytics and ERP systems also saw above-average compensation as well, at about $94,800 and $94,000 respectively.

Networking managers in mainframe environments also were paid better than those with other platforms, averaging more than $103,000 a year.

NETWORKING MANAGER SALARIES

HELP DESK/SUPPORT MANAGER

Help desk and support managers saw a modest bump in their salaries over the past year, enough to keep pace with inflation. These managers, who saw their salaries whither when the economic downturn first hit in 2008-2009, now make an average of close to $74,000 in base pay, up close to four percent over the previous year. Help desk and support managers are responsible for diagnosing, troubleshooting, and correcting end-user problems.

Making up for lackluster base salary growth, those help desk and support managers eligible for bonuses saw generous compensation from their employers over the past year. This year, help desk managers’ bonuses are averaging about $5,500, almost a third higher than a year ago.

Help desk managers' salaries rank last among the nine management positions covered in our survey, and also the lowest in terms of bonuses. Notably, however, this position saw the third-highest increase in bonus levels (up 32 percent).

The typical help desk manager in our survey has at least 10 years of industry experience. He or she will earn about $62,000 in the first decade on the job, and income rises by close to 36 percent as experience grows.

Help desk and support managers in environments running service-oriented architecture and ERP tend to have the greatest premiums, with average base salaries exceeding $81,000. Those helping to oversee business analytics operations follow at more than $79,000.

Help desk and support managers in Unix systems-intensive environments also tend to earn more than those in distributed computing environments, our survey finds -- with base salaries averaging close to $86,700. Those working within primarily mainframe and midrange shops follow closely with $85,600 and $85,200, respectively.

HELP DESK/SUPPORT SALARIES

ENTERPRISE ARCHITECT

Salaries for enterprise architects -- who bridge the gap between IT and business processes and help plan long-term technology road maps -- have been volatile in recent years. However, the trend has been upward over the past year. Enterprise architects now have average annual base salaries of more than $103,000, a 10 percent jump, and the first time levels have topped the $100,000 level since 2009.

Along with increased average salaries, enterprise architects’ bonuses were up this year, by 13 percent. Although not at the peak bonus level last seen in 2009 -- at the onset of the recession -- bonuses for eligible EAs have been steadily advancing upward since they took a dive in 2010.

Enterprise architects' salaries rank third among the nine management positions covered in our survey, and had the highest year-to-year increase (10 percent). However, EAs ranked sixth in terms of bonus amounts.

On average, enterprise architects have been on the job about 13 years, and after a decade tend to see significant raises -- rising more than 45 percent. Enterprise architects with fewer than 10 years of experience report average base salaries of about $77,000 a year.

For purposes of this survey, EAs are categorized as management because their responsibilities include supporting business process enablement, preparing for the architectural implications of outsourcing, adopting a system for measuring and managing performance, and measuring the business impact of the architecture. The position may also be known by titles such as senior architect; chief architect; and director, enterprise architecture and/or enterprise strategies and/or enterprise solutions.

In accordance with their most prominent role, EAs engaged with service-oriented architecture-based environments top the list in terms of salary premiums, earning more than $110,000 annually. Private cloud -- which often depends on an SOA-based foundation -- follows closely at $107,600. In contrast, those EAs working with public cloud-based services earned less. Those managing business analytics environments round out the top three-earning environments for this position at slightly more than $107,500.

EAs at Unix-intensive sites earn the most, averaging more than $117,800 a year in base salary. Professionals working within mainframe-oriented sites follow with more than $115,000.

ENTERPRISE ARCHITECT

INTERNET MANAGER

Internet managers -- who oversee their companies' Web presence and e-business channels -- saw average salaries increase by more than nine percent over the past year, to more than $89,000 a year. This is the highest average base salary seen for this position in the 11 years this survey has been conducted. However, during this time, salaries have fluctuated considerably, suggesting a fuzziness of the duties of this job, as well as shifting tides around e-business, social business, cloud enablement and Web development.

As has been the case across the board for most IT managers, Internet managers have gained ground in bonuses. This year, average bonuses awarded to Internet managers totaled close to $7,800 -- a nearly 56 percent increase over last year's results.

Internet managers’ salaries now rank seventh among the nine management positions covered in our survey, and also seventh in terms of bonus amounts. However, these managers saw the largest increase in bonuses.

Internet managers in the survey have, on average, close to 12 years of industry experience. Those with greater than 10 years of experience earn about $97,000 a year, or 36 percent more than their less-experienced counterparts.

The survey also finds that Internet managers working within companies with service-oriented architectures lead, with base salaries averaging more than $102,000. Those overseeing sites with business analytics capabilities follow with over $98,400, and data warehouse sites at about $97,600.

By platform, Internet managers in Unix computing environments had the highest ranges, averaging $105,000, followed by those in midrange settings with over $99,000 in base salaries.

INTERNET MANAGER SALARIES

SALARIES OF PROFESSIONAL STAFF

In our next report we'll examine salaries of IT professional staff -- from application programmers to storage administrators.