2007 ESJ Salary Survey, Part 2: Impressive Salary Gains for Most Management Positions

After several years of tepid salary growth, IT management positions have seen a significant boost over the past year

By: The Enterprise Systems Staff


After several years of tepid salary growth, IT management positions have seen a significant boost over the past year. As reported in the first part of our series, continuing health in the economy and demands on businesses to better manage data have resulted in rising salaries across the board for IT line staff positions. IT executives and managers are also seeing healthy bumps in their average salaries. All eight of the key management positions surveyed by Enterprise Systems from year to year saw increases in average base salaries since 2006. (A ninth position -- Enterprise Architect -- is new to this survey this year.)

These findings are based on an Enterprise Systems survey of 1,032 companies. Along with eight key line IT staff positions (see Part 1 of this report), the survey covered nine key IT management positions.

Across the board, salary increases for eight management positions averaged six percent. While bonus levels fell for most IT line staff positions over the past year, this was only the case for three of the management positions, our survey found.

IT management salaries were strongest in the health care and manufacturing sectors. As with IT staff positions, those managers overseeing supply chain and data warehousing installations had the highest average salaries.


CIO AND VICE PRESIDENT OF IT

Chief information officers and vice presidents of IT -- the executives who oversee the strategic direction of technology for their organizations -- saw modest raises over the past year, the Enterprise Systems survey finds. This was the case in last year's survey as well.

Salaries for these top executives, while still well above all other positions covered in this survey, only grew slightly more than one percent since last year, from $140,000 to about $142,000. For the two previous years, raises averaged closer to four percent.

In terms of bonuses, CIOs are projected to also earn bonuses of about $28,200 on top of their base salaries for this year. While this is the highest bonus level accorded to any jobholder among the 17 positions covered in the survey, this is nevertheless a decline of 17 percent from the peak average bonus of $34,000 recorded last year. Before then, CIO bonuses had steadily been climbing, starting with $21,000 in 2001, the first year of this survey.

The typical CIO or top IT executive in our survey has about 15 years of experience in the job. On average, seasoned CIOs with 10 or more years experience earn up to 26 percent more than their less-experienced counterparts. A seasoned CIO brings in an average base salary of more than $167,000 a year.

CIOs overseeing supply chain installations fare best this year, earning more than $175,000. Those top executives overseeing ERP sites follow with $158,000.

CIOs overseeing shops running Unix systems are drawing an average base salary of $175,000, or 24 percent higher than the overall average. This is followed by $172,000 overseeing System i or midrange systems sites. Those CIOs overseeing distributed Linux installations (no mainframes present) saw the lowest compensation, averaging more than $124,000 a year.

CIO salaries are strongest within the health-care sector, averaging more than $177,000, followed by manufacturing at $174,000.


CIO/VP SALARIES

Year-to-Year Change
2007 2006 2005 2004 2002 2001 1-year change 6-year change
$141,700 $139,900 $134,600 $130,000 $110,560 $120,700 +1.3% +17.4%
Average Annual Bonus
2007 2006 2005 2004 2002 2001 1-year change 6-year change
$28,200 $34,200 $33,900 $25,400 $19,700 $21,200 -17.5% +33.0%

By Experience Level
<10> 10-19 years 20+ years Differential
$133,300 $129,900 $167,400 +25.6%

By Operating System Environment
Mainframe Midrange AIX/Unix Windows Non-Mainframe
Linux
Non-Mainframe
Windows
$242,500 $172,000 $174,700 $147,200 $124,300 $132,500

By Application Environment
ERP CRM B2B B2C Supply Chain Data Warehouse
$157,800 $150,400 $147,100 $137,800 $175,400 $150,400


INFORMATION SYSTEMS DIRECTOR

While CIO salaries held even, their immediate subordinates -- IS directors -- enjoyed much greater salary growth over the past year. IS directors -- who typical report to the CIO's office and plan, direct, and control all day-to-day IT functions and oversee entire departments -- have finally broken through the $100,000 mark. The survey finds the average salary at about $106,000, up almost seven percent from last year. This is a break from the anemic salary growth managers in this position saw since our first survey was conducted in 2001.

Bonuses for IS directors have also been lucrative over the past year. The typical average bonus reported among this survey group is more than $14,000, a healthy 12-percent increase over last year. IS directors also had significant increases in bonuses in last year's survey as well.

On average, the IS directors covered in our survey have about 14 years' experience. IS directors with 20 or more years experience make 30 percent more than those in the first five years of their jobs. An IS director with less than 10 years experience can expect to make an average of $88,000 a year, a figure that climbs to more than $114,000 for those with at least two decades' worth of experience. By applications categories, IS directors overseeing shops building and managing supply chain systems top the list with an average base of $124,000 -- 17 percent above the overall average. Business-to-business shops follow at $116,000, and CRM installations at $115,000.

The pay scales also tip in favor of IS directors in mainframe and mainframe-class shops, where they earn averages between $120,000 and $121,000. Those managing AIX or Unix operating environments follow at $117,000.

IS directors' salaries are strongest in the retail sector, averaging more than $126,000 in annual base compensation. Those in the manufacturing sector follow closely with $124,500. Salaries for IS directors were lowest in the government, education, and non-profit sector, where they average $99,000 a year.


IS DIRECTOR SALARIES

Year-to-Year Change
2007 2006 2005 2004 2002 2001 1-year change 6-year change
106,300 $99,600 $99,000 $95,250 $92,510 $99,100 +6.7% +7.2%
Average Annual Bonus
2007 2006 2005 2004 2002 2001 1-year change 6-year change
$14,270 $12,700 $10,700 $10,600 $7,000 $3,500 +12.4% +307.7%

By Experience Level
<10> 10-19 years 20+ years Differential
$87,700 $108,100 $114,400 +30.4%

By Operating System Environment
Mainframe Midrange AIX/Unix Windows Non-Mainframe
Linux
Non-Mainframe
Windows
$110,112,000 $120,800 $117,300 $104,400 $99,300 $103,600

By Application Environment
ERP CRM B2B B2C Supply Chain Data Warehouse
$112,000 $115,000 $116,200 $111,600 $124,000 $112,100


INFORMATION SYSTEMS MANAGER

As with their upper echelon counterparts (IS directors), IS managers appear to be finally seeing significant growth in their compensation levels. This year, the average base salary for an IS manager -- who plans and approves equipment and software purchases, as well as oversees day-to-day activities -- is up by eight percent, from $81,000 to $88,000.

There has been greater bonus activity for these professionals as well. IS managers' bonuses for the past year averaged close to $7,800, up more than nine percent from last year.

The average IS manager reported in this survey has about 12 years of on-the-job experience. Those in their first decade average about $82,000, a figure that climbs by 15 percent to $94,000 among the more seasoned managers.

Interestingly, IS managers in distributed Linux shops make the most, topping out at more than $103,000 a year. This is in contrast to most other management positions, which tend to compensated lower at distributed Linux sites. Midrange computing sites follow at $101,000.

Companies deploying and managing e-business systems -- both business-to-business and business-to-consumer -- report paying their IS managers the most, averaging between $97,000 and $98,000, the survey finds. Those IS managers overseeing supply chain management installations also now see average base compensation at more than $97,000.

IS management salaries are strongest within the financial services/insurance sector, averaging more than $98,000 -- or about 11 percent above the overall average. IS management salaries at utility, transportation, and telecommunications firms follow at $97,000, and manufacturing at $96,000.


IS MANAGER SALARIES

Year-to-Year Change
2007 2006 2005 2004 2002 2001 1-year change 6-year change
$88,030 $81,400 $83,600 $81,100 $86,100 $78,600 +8.1 +12.0%
Average Annual Bonus
2007 2006 2005 2004 2002 2001 1-year change 6-year change
$7,770 $7,100 $6,830 $6,100 $6,100 $7,800 +9.4% 0%

By Experience Level
<10> 10-19 years 20+ years Differential
$81,800 $89,600 $94,000 +14.9%

By Operating System Environment
Mainframe Midrange AIX/Unix Windows Non-Mainframe
Linux
Non-Mainframe
Windows
$99,300 $100,600 $98,500 $88,200 $103,100 $90,300

By Application Environment
ERP CRM B2B B2C Supply Chain Data Warehouse
$90,600 $89,700 $97,600 $97,100 $97,300 $93,600


APPLICATION DEVELOPMENT MANAGERS

Compared to their management counterparts covered in this survey, application development managers saw tepid salary growth over the past year, increasing two percent to about $91,000. However, after several years of ups and downs in salaries, AD managers' compensation seems to be on an upward curve. AD managers plan, direct, and control all day-to-day application development functions.

Base salaries for this position now average more than $91,000 a year for this position. In the five years since this category was first measured in 2001, salaries are up by 15 percent.

AD managers saw reduced bonuses over the past year as well, our survey finds. This year, AD managers' bonuses averaged close to $6,600, down by 15 percent from last year, and still well under amounts claimed in 2001, the first year this survey was conducted (and at the tail end of the dot-com boom.)

AD managers can expect to see salary growth of at least 21 percent throughout their careers, the survey finds. Currently, AD managers in the first decade of their careers make about $81,000, a level that rises to just over $98,000 for those with at least 20 years of experience.

Those AD managers overseeing AIX or Unix shops are seeing the highest levels of compensation, pulling in at least $101,000 a year in base salaries, our survey finds. Managers in midrange-class environments follow at more than $99,000.

By industry, AD managers are the best paid within health-care organizations, averaging $105,000 a year. Those overseeing application development within manufacturing environments follow with $104,000.


APPLICATION DEVELOPMENT MANAGER SALARIES

Year-to-Year Change
2007 2006 2005 2004 2002 2001 1-year change 6-year change
$91,400 $89,600 $86,500 $87,500 $85,600 $79,500 +2.0% +15.0%
Average Annual Bonus
2007 2006 2005 2004 2002 2001 1-year change 6-year change
$6,560 $7,700 $6,920 $7,100 $6,160 $8,000 -14.8% -18.0%

By Experience Level
<10> 10-19 years 20+ years Differential
$80,900 $96,800 $98,100 +21.3%

By Operating System Environment
Mainframe Midrange AIX/Unix Windows Non-Mainframe
Linux
Non-Mainframe
Windows
$98,200 $99,200 $101,000 $92,000 $86,600 $88,500

By Application Environment
ERP CRM B2B B2C Supply Chain Data Warehouse
$94,200 $91,900 $94,600 $94,100 $99,000 $94,600


DATA CENTER/OPERATIONS MANAGER

Data center and operations managers -- who oversee day-to-day operations of data center environments -- joined the ranks of IS directors and managers with an eight percent jump in average base salaries. The survey finds data center managers now making about $89,000 -- up more than eight percent from last year's average of $82,300. Overall, data center managers' salaries are up by close to 15 percent from the time this category was first covered in the survey in 2002.

Annual average bonuses for data center managers have shrunk, however, declining from a peak of $8,100 a year ago to about $5,800 this year.

On average, data center managers in our survey have about 12 years' experience. The more experienced managers (with two decades or more of experience) are drawing salaries if at least $102,000, or 25 percent more than their less-seasoned counterparts.

Data center manager salaries are strongest within the manufacturing sector, averaging $110,000, or about 24 percent above the average. Those in high-tech and software companies follow with about $101,000.

Data center managers in environments with supply chain management installations fare best financially, averaging about $101,000 a year in base salaries, or 13 percent above the overall average. Those in data warehouse and ERP environments follow with $95,000 and $94,000, respectively.

By environment, our respondents reported that data center managers in Unix shops fare best, drawing average salaries of more than $96,000. Mainframe and midrange site data center managers follow at about $94,000 each.


DATA CENTER/OPERATIONS MANAGER SALARIES

Year-to-Year Change
2007 2006 2005 2004 2002 1-year change 5-year change
$89,100 $82,300 $79,700 $79,300 $77,800 +8.3% +14.5%
Average Annual Bonus
2007 2006 2005 2004 2002 1-year change 5-year change
$5,760 $8,100 $6,160 $7,200 $5,760 -28.9% 0%

By Experience Level
<10> 10-19 years 20+ years Differential
$81,600 $87,400 $102,800 +26.0%

By Operating System Environment
Mainframe Midrange AIX/Unix Windows Non-Mainframe
Linux
Non-Mainframe
Windows
$93,900 $93,900 $96,000 $87,700 $80,300 $85,000

By Application Environment
ERP CRM B2B B2C Supply Chain Data Warehouse
$94,500 $87,900 $92,700 $09,300 $100,900 $94,600


NETWORKING MANAGER

Networking managers saw increases in their average base salaries of about three percent, slightly below last year's jump of four percent. Currently, network managers -- who oversee the operation and planning of computer networks -- are earning base salaries of more than $81,000.

Bonuses for networking managers are on the upswing. This year, the average annual bonuses reported by this group of survey respondents came to about $5,500, up 30 percent over last year's bonus. This is the second highest bonus increase seen among any of the 17 IT positions measured in this survey. (Help desk managers, reported next, saw the greatest gains in bonuses.)

Networking managers can expect to see salary growth of at least 37 percent throughout their careers, the survey also finds. Currently, networking managers in their first decade on the job (with less than 10 years' experience) make about $74,000, a level that rises to more than $101,000 with 20 years' worth of experience.

By platform, networking managers in Unix environments edge out other environments, with average salaries of at least $94,000 -- about 16 percent higher than the overall average. Those within mainframe shops follow closely with $93,000.

At distributed Linux sites with no mainframe systems, networking managers average about $72,000, or 11 percent below the average. At non-mainframe Windows sites, the average rises to $75,000, but still below the average.

As is the case across just about all management categories, networking managers in sites with supply-chain management systems commanded the highest rates, averaging more than $93,000. Business-to-business sites follow with $92,000.

By industry group, networking managers within the manufacturing sector have the highest annual base salaries, averaging $103,000. This is 27 percent higher than the overall average, reflecting the importance of this position in these types of organizations. Networking managers in health-care organizations and high-tech/software firms follow with $95,000.


NETWORKING MANAGER SALARIES

Year-to-Year Change
2007 2006 2005 2004 2002 1-year change 5-year change
$81,300 $78,800 $75,800 $70,500 $71,900 +3.2% +13.1%
Average Annual Bonus
2007 2006 2005 2004 2002 1-year change 5-year change
$5,470 $4,200 $5,800 $5,700 $3,940 +30.2% +38.8%

By Experience Level
<10> 10-19 years 20+ years Differential
$74,000 $78,600 $101,500 +37.2%

By Operating System Environment
Mainframe Midrange AIX/Unix Windows Non-Mainframe
Linux
Non-Mainframe
Windows
$92,900 $89,200 $94,200 $80,100 $72,000 $75,100

By Application Environment
ERP CRM B2B B2C Supply Chain Data Warehouse
$87,300 $90,500 $92,200 $83,800 $93,400 $90,300


HELP DESK/SUPPORT MANAGER

Bucking the trend, it appears that companies are paying help desk and support managers in bonuses rather than in straight salary gains. These managers -- responsible for diagnosing, troubleshooting, and correcting end-user access problems -- saw a bump in average base salaries of about three percent, now averaging close to $69,000. Last year's increase was about six percent.

Across the board, help desk managers are projected to also earn bonuses of more than $3,900, up by 64 percent from last year's survey -- the highest bonus increase of any of the 17 positions covered in this survey.

The typical help desk manager in our survey has close to nine years of industry experience. Help desk managers earn about $60,000 in their first decade, and then rise 50 percent to more than $90,000 for those with at least a decade of experience.

This year, premiums for in-demand help desk management skills are paid to those who work within data warehouse ($77,000) and supply chain environments ($73,500).

By platform, those help desk managers at Unix systems sites report the highest average base salaries, at $80,000, or 17 percent above the overall average for this position.

By industry, help desk managers working within the utility sector (includes transportation and telecommunications) fare best, with average annual base salaries of close to $85,000. Those in manufacturing follow with salaries of more than $76,000.


HELP DESK/SUPPORT SALARIES

Year-to-Year Change
2007 2006 2005 2004 2002 1-year change 5-year change
$68,600 $66,600 $62,700 $59,800 $62,600 +6.2% +6.4%
Average Annual Bonus
2007 2006 2005 2004 2002 1-year change 5-year change
$3,940 $2,400 $1,140 $3,300 $2,940 +64.2% +34.0%

By Experience Level
<10> 10-19 years 20+ years Differential
$60,200 $75,700 $90,600 +50.5%

By Operating System Environment
Mainframe Midrange AIX/Unix Windows Non-Mainframe
Linux
Non-Mainframe
Windows
$78,200 $77,000 $80,100 $67,600 $63,100 $64,000

By Application Environment
ERP CRM B2B B2C Supply Chain Data Warehouse
$72,300 $69,800 $70,700 $72,600 $73,500 $77,300


INTERNET MANAGER/DIRECTOR

Internet managers -- who oversee their companies' Web presence and e-business channels -- received the highest bump in salary rates of all the positions measured in this survey -- up by more than 16 percent over the past year, to $86,900. This is the most significant increase of any of the eight IT management positions covered on a year-to-year basis within this survey.

The salary rates for this position have fluctuated widely since the first survey in 2001, reflecting not only the fuzziness of the duties of this job, but the shifting tides around e-business and Web development as well.

Bonuses for Internet managers remained in the same range this year as they were last year. Average bonuses awarded to Internet managers were about $4,200. This is still off significantly from the $6,000 level for bonuses seen in the earlier part of the decade, when this survey was first launched.

Internet managers in the survey have, on average, close to 10 years of industry experience. Prospects for salary growth through experience look promising -- the survey finds a 50-percent differential between Internet managers in the first decade of their jobs and those with between 10 and 19 years experience -- $71,000 versus $107,000. Not enough data was available for those with 20 or more years' experience.

The survey also finds that enterprises are paying premiums for Internet managers within data warehouse and supply chain management system environments. Those Internet managers working within companies with both types of installations have base salaries averaging about $98,000.

By platform, Internet managers in midrange computing environments had the highest ranges, averaging about $99,000, followed by those in mainframe and Unix environments with at about $94,000 a piece.


INTERNET MANAGER/DIRECTOR SALARIES

Year-to-Year Change
2007 2006 2005 2004 2002 2001 1-year change 6-year change
$86,900 $74,700 $83,300 $71,000 $78,400 $65,200 +17.3% +33.3%
Average Annual Bonus
2007 2006 2005 2004 2002 2001 1-year change 6-year change
$4,170 $4,300 $4,890 $5,000 $6,110 $6,500 -3.0% -35.8%

By Experience Level
<10> 10-19 years 20+ years Differential
$71,400 $107,100 * *
* Insufficient data

By Operating System Environment
Mainframe Midrange AIX/Unix Windows Non-Mainframe
Linux
Non-Mainframe
Windows
$94,100 $99,000 $93,800 $83,700 $78,600 $74,000

By Application Environment
ERP CRM B2B B2C Supply Chain Data Warehouse
$87,700 $97,500 $92,500 $86,200 $98,200 $98,000


ENTERPRISE ARCHITECT

A new position added to the Enterprise Systems salary survey this year is that of enterprise architect, which bridges the gap between IT and business processes. Responsibilities of the enterprise architect defined for this survey 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.

Overall, enterprise architects measured in the current survey have average annual base salaries averaging $99,950, augmented by average annual bonuses of $9,460 -- the third-highest level of any of the 17 positions measured in this survey.

Enterprise architects start out at about $89,000 a year (among those with less than five years experience), which climbs to more than $114,000 among the more seasoned architects. The average enterprise architect in our survey has more than 13 years of experience.

Enterprise architects working at sites with enterprise data warehouse implementations had the highest salary ranges in the survey; averaging more than $104,000. Those working at companies with ERP, CRM, and business-to-business e-commerce systems follow closely behind.

Among platform types, enterprise architects at Unix computing sites had the highest average, at $105,000, versus mainframe EAs earning $101,500. Those working at distributed Linux or Windows sites (with no mainframe) fared lowest in the averages, at about $95,000 for each.

By industry group, enterprise architects stand to make the most by joining health care or service operations, where the average is $112,000 in both.


ENTERPRISE ARCHITECT

Annual Base Salary
2007
$99,950
Average Annual Bonus
2007
$9,460

By Experience Level
<10> 10-19 years 20+ years Differential
$89,100 $100,300 $114,400 +28.4%

By Operating System Environment
Mainframe Midrange AIX/Unix Windows Non-Mainframe
Linux
Non-Mainframe
Windows
$101,500 $102,900 $104,700 $97,900 $95,800 $95,100


NEXT WEEK

Next week we'll examine salaries by region, industry, and company size.