Enterprise Systems 2008 Salary Survey, Part 2: Management Positions

Modest salary gains across the board for most management positions, but bonuses still off their peaks


Over the past year, companies have modestly boosted IT management and executive base salaries, but bonuses are still off the highs achieved within the last two years. Six out of nine management positions, in fact, saw bonus amounts peak either in 2006 or 2007, while only two reported record average bonuses in the current survey.

These findings are based on an Enterprise Systems survey of 691 companies. Along with nine key line-IT staff positions (see Part 1 of this report), the survey covered nine key IT management positions. Management salary growth is tracking close to that of IT staff. Across the board, salary increases for the nine management positions averaged 1.6%, with two positions seeing a decline. Our survey found salary growth for IT line staff positions averaged 2.3% across the board.

IT managers and executives at mainframe and Unix sites tended to have the highest salary rates, while those at more distributed sites (such as Windows or Linux servers with no mainframe) tended to see the lowest average rates.

Although the financial services sector has been going through a period of turbulence due to the subprime mortgage and related credit crisis, this has not stopped these firms from offering the most lucrative salary rates to IT managers. Seven of the nine IT management positions measured in our survey saw the highest rates paid within the financial industry.


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 the most significant raises in more than two years, the Enterprise Systems survey finds.

Salaries for these top executives, well above all other positions covered in this survey, grew more than five percent over the last year, from $142,000 to $149,000. Last year, the overall increase was about one percent, and four percent the year before that. In 2001, the first year of the survey, CIO salaries averaged about $120,000.

In terms of bonuses, increases have been tepid for these top executives -- perhaps a reflection of cautious spending by companies. About eight percent of respondents reported that their CIOs did receive bonuses this year, down from nine percent last year. CIOs are projected to earn bonuses of about $28,500 on top of their base salaries for this year. This is still down significantly from the peak average bonus of $34,000 reported by companies in 2006. Before then, CIO bonuses had steadily been climbing, starting with $21,000 in 2001, the first year of this survey, and peaking at an average of $34,000 in 2005 and 2006.

Not surprisingly, CIOs and VPs drew the highest base salaries and bonuses of the 18 positions covered in the survey.

The typical CIO or top IT executive in our survey has close to 16 years of experience in the job. On average, seasoned CIOs with 20 or more years experience earn up to 46 percent more than their less-experienced counterparts. A seasoned CIO brings in an average base salary of almost $190,000 a year.

CIOs overseeing ERP installations fare best this year, earning more than $170,000 on average. Those top executives overseeing supply chain management operations follow with $166,000. ERP and SCM-focused sites have typically been the leaders for CIO salaries over the years our survey has been conducted.

By operating system and platform, mainframe operations tend to pay best, as with previous surveys. Those CIOs overseeing mainframe shops saw base salaries averaging more than $203,000 a year. This is followed by $189,000 for those overseeing System i or midrange systems sites. CIOs overseeing shops running Unix systems are drawing an average base salary of $173,000. The lowest levels of compensation went to CIOs overseeing Windows sites that did not have a larger system present.

This year, CIO salaries are strongest within the financial services sector, averaging more than $264,000 a year, followed by the computer/software industry at $171,000.


CIO/VP SALARIES

Year-to-Year Change
2008 2007 2006 2005 2004 2002 2001 1-year change 6-year change
$149,000 $141,700 $139,900 $134,600 $130,000 $110,560 $120,700 +5.2% +23.4%

Average Annual Bonus
2008 2007 2006 2005 2004 2002 2001 1-year change 7-year change
$28,500 $28,200 $34,200 $33,900 $25,400 $19,700 $21,200 +1.1% +34.4%

By Experience Level
<10> 10-19 years 20+ years Differential
$130,100 $129,000 $189,700 +45.8%

By Operating System Environment
Mainframe Midrange AIX/Unix Windows Non-Mainframe
Linux
Non-Mainframe
Windows
$203,200 $188,900 $173,000 $154,500 $130,600 $123,700

By Application Environment
ERP Supply Chain Data Warehouse CRM B2B B2C
$170,600 $166,100 $161,800 $157,100 $137,700 $136,400


INFORMATION SYSTEMS DIRECTOR

Although CIO base salaries saw a bump, their immediate subordinates -- IS directors -- enjoyed much greater salary growth over the past year. IS directors -- who typically report to the CIO's office and plan, direct, and control all day-to-day IT functions and oversee entire departments -- saw modest increases over the last year. Our survey finds the average salary at close to $107,000, up less than a percentage point from last year. Overall, IS directors have not seen appreciable salary growth since this survey was first launched seven years ago -- overall average base salaries are only up by about eight percent for this period.

Over the same time period, bonuses for IS directors have risen dramatically as if to help compensate for the low rate of salary increases. However, IS directors saw a smaller bonus over the past year. The typical average bonus reported among this survey group is about $13,700, down from more than $14,000 last year at this time.

IS director salaries and bonuses were the second highest of all 18 positions covered in our survey, a distant second behind the compensation levels for CIOs and VPs.

On average, the IS directors covered in our survey have about 15 years' experience. IS directors with 20 or more years’ experience make 25 percent more than those in the first 10 years of their jobs. An IS director with fewer than 10 years experience can expect to make more than $90,000 a year, a figure that climbs to more than $113,000 for those with at least two decades' worth of experience.

By applications categories, IS directors overseeing shops building and managing customer relationship management (CRM) systems top the list with an average base close to $113,000 -- about six percent above the overall average. Supply chain management operations follow at $110,000, and data warehouse sites follow at $109,000.

The pay scales also favor IS directors in mainframe shops, where they earn about $123,000. Those managing Unix operating environments follow at $115,000, followed closely by midrange-class system shops (such as IBM I Series) with $114,000. Those IS directors managing primarily Windows server-based operations, with no mainframe, averaged lowest, with about $98,000 a year.

IS directors' salaries are strongest in the financial services sector, averaging more than $133,000 in annual base compensation. Those in the computer and software sector follow with $118,000.


IS DIRECTOR SALARIES

Year-to-Year Change
2008 2007 2006 2005 2004 2002 2001 1-year change 7-year change
$106,900 $106,300 $99,600 $99,000 $95,250 $92,510 $99,100 +0.6% +7.9%

Average Annual Bonus
2008 2007 2006 2005 2004 2002 2001 1-year change 7-year change
$13,680 $14,270 $12,700 $10,700 $10,600 $7,000 $3,500 -4.1% +290.9%

By Experience Level
<10> 10-19 years 20+ years Differential
$90,500 $105,600 $113,400 +25.3%

By Operating System Environment
Mainframe Midrange AIX/Unix Windows Non-Mainframe
Linux
Non-Mainframe
Windows
$123,000 $114,000 $114,700 $105,500 $100,200 $98,100

By Application Environment
CRM Supply Chain Data Warehouse ERP B2B B2C
$112,800 $109,900 $108,900 $106,600 $105,400 $101,200


INFORMATION SYSTEMS MANAGER

As with their counterparts (IS directors), IS managers have had slow salary growth over the past year. 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 barely two percent, from $88,000 to about $90,000.

IS managers’ salaries ranked sixth among the nine management positions covered in our survey.

About 14 percent of respondents said their managers received a bonus this year, the highest percentage of all management categories. IS managers also saw modest increases in their bonus levels as well. IS managers' bonuses for the past year averaged close to $8,200, up about five percent from $7,800 last year. Bonuses for IT managers still hover close to levels seen in 2001, the first year this survey was conducted. IS managers’ bonuses were the fourth highest of the nine 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 $85,000, a figure that climbs to $92,000 among more seasoned managers.

Interestingly, in terms of compensation by platform environment, IS managers in distributed Linux shops top the list along with mainframe sites, with both categories averaging $95,000 a year. Unix sites follow closely with an average of $93,000. IS managers at mainly Windows server sites had the lowest in the range, making about $86,000 a year in base salary.

Companies deploying and managing data warehouse systems pay their managers the most, averaging more than $97,000 annually, our survey finds. Those IS managers overseeing CRM configurations follow with more than $95,000 a year in base compensation. Interestingly, those IS managers in charge of ERP installations -- a leading salary category for most categories -- had the lowest average in this survey.

IS management salaries are strongest within the financial services/insurance sector, averaging more than $112,000 -- or almost 25 percent above the overall average. IS management salaries at computer manufacturing and software firms follow at $97,000.


IS MANAGER SALARIES

Year-to-Year Change
2008 2007 2006 2005 2004 2002 2001 1-year change 7-year change
$89,900 $88,030 $81,400 $83,600 $81,100 $86,100 $78,600 +2.1 +14.4%

Average Annual Bonus
2008 2007 2006 2005 2004 2002 2001 1-year change 7-year change
$8,180 $7,770 $7,100 $6,830 $6,100 $6,100 $7,800 +5.3% 4.9%

By Experience Level
<10> 10-19 years 20+ years Differential
$85,100 $88,100 $91,700 +7.8%

By Operating System Environment
Mainframe Non-Mainframe
Linux
AIX/Unix Windows Midrange Non-Mainframe
Windows
$95,500 $95,200 $93,300 $89,000 $87,400 $85,900

By Application Environment
Data Warehouse CRM B2B B2C Supply Chain ERP
$97,100 $95,500 $91,100 $88,200 $85,900 $83,400


APPLICATION DEVELOPMENT MANAGERS

As with past surveys in this series, application development managers continued to see tepid salary growth over the past year, increasing three percent to more than $94,000. When this survey was first launched in 2001, AD managers -- who plan, direct, and control all day-to-day application development functions -- averaged just over $79,000 a year in base salary, a number that has grown by close to 20 percent.

AD managers’ salaries were the fifth highest of the nine management positions covered.

However, while their salaries gradually climb upward, AD managers are seeing a smaller bonus check every year, our survey finds. This year, AD managers' bonuses averaged close to $6,300, down by five percent from last year. Last year, bonuses were down by 15 percent. This year’s bonus is also well under amounts claimed in 2001, the first year this survey was conducted. AD management bonuses were in sixth place among the 18 positions in the survey.

The average AD manager has more than 11 years of experience on the job. These managers can expect to see salary growth of at least 18 percent throughout their careers, the survey finds. Currently, AD managers in the first decade of their careers make more than $82,000, a level that rises to $97,000 for those with at least 20 years of experience.

Those AD managers overseeing mainframe and Unix shops are seeing the highest levels of compensation, pulling in at least $99,000 a year in base salaries, our survey finds. Those in environments dominated by Windows server saw the lowest levels, at about $91,000.

Application development managers overseeing projects within CRM environments have the highest overall average salary, at $98,000. Data warehouse sites follow at $97,000.

By industry, AD managers are the best paid within financial services and insurance organizations, averaging more than $108,000 a year. Those overseeing application development within other business services environments follow with $99,000.


APPLICATION DEVELOPMENT MANAGER SALARIES

Year-to-Year Change
2008 2007 2006 2005 2004 2002 2001 1-year change 7-year change
$94,300 $91,400 $89,600 $86,500 $87,500 $85,600 $79,500 +2.9% +18.6%

Average Annual Bonus
2008 2007 2006 2005 2004 2002 2001 1-year change 7-year change
$6,260 $6,560 $7,700 $6,920 $7,100 $6,160 $8,000 -4.6% -21.8%

By Experience Level
<10> 10-19 years 20+ years Differential
$82,500 $96,100 $97,000 +17.6%

By Operating System Environment
Mainframe AIX/Unix Windows Midrange Non-Mainframe
Linux
Non-Mainframe
Windows
$99,000 $98,700 $94,400 $94,500 $94,000 $90,800

By Application Environment
CRM Data Warehouse B2B ERP Supply Chain B2C
$98,000 $97,100 $96,500 $94,500 $92,600 $86,100


DATA CENTER/OPERATIONS MANAGER

All in all, enterprises seem to be appreciating the key role data center managers are playing in helping them move to the next level of information technology. Data center and operations managers -- who oversee day-to-day operations of data center environments -- saw a six percent jump in average base salaries, our survey finds.

The survey finds data center managers now making an average of $83,600 -- down six percent from last year's average of $89,000. This followed last year’s jump of eight percent for average data center management salaries. Overall, data center managers' salaries are up by close to 11 percent from the time this category was first covered in the survey in 2002.

Data center managers’ salaries were the sixth-highest category in terms of earnings across the nine management positions covered.

Data center management bonuses, although inching a bit higher over the past year, are still well below the peak seen in 2006, however. Annual average bonuses for data center managers now average about $6,000 for the year, up by about four percent from last year.

Data center managers’ bonuses for the past year were the seventh highest out of the nine management positions in our survey.

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 $112,000, or 40 percent more than their less-seasoned counterparts with less than 10 years’ experience.

Data center manager salaries are strongest within the financial services sector, averaging $105,000, or about 18 percent above the average. Those in computer/high-tech companies follow with about $85,000.

Data center managers in environments with major CRM installations fare best financially, averaging close to $88,000 a year in base salaries. Those in data warehouse environments follow with $86,400.

By platform environment, mainframe site managers are runaway leaders in terms of salary levels, averaging almost $93,100 a year. Unix shops follow with about $90,800.


DATA CENTER/OPERATIONS MANAGER SALARIES

Year-to-Year Change
2008 2007 2006 2005 2004 2002 1-year change 6-year change
$86,300 $89,100 $82,300 $79,700 $79,300 $77,800 -6.2% +11.0%

Average Annual Bonus
2008 2007 2006 2005 2004 2002 1-year change 6-year change
$5,980 $5,760 $8,100 $6,160 $7,200 $5,760 +3.8% +3.8%

By Experience Level
<10> 10-19 years 20+ years Differential
$79,600 $93,300 $112,000 +40.7%

By Operating System Environment
Mainframe AIX/Unix Windows Non-Mainframe
Linux
Midrange Non-Mainframe
Windows
$93,100 $90,800 $95,100 $83,300 $82,700 $75,500

By Application Environment
CRM Data Warehouse B2B B2C Supply Chain ERP
$87,800 $86,400 $78,900 $77,500 $77,000 $76,800


NETWORKING MANAGER

Networking managers saw increases in their average base salaries of about two percent, slightly below last year's jump of three percent and four percent the year before that. Currently, network managers -- who oversee the operation and planning of computer networks -- are earning base salaries of more than $83,000. Average salaries have increased by about 16% from the time this position was first covered in our 2002 survey.

Networking managers’ salaries ranked in seventh place among the nine management positions in the survey.

Bonuses for networking managers continue on the upswing, though at a slower pace than before. This year, the average annual bonuses reported by this group of survey respondents came just under $5,800, up five percent over last year's bonus. This is also about the same as the high reached in 2005.

Networking managers’ bonuses, when compared with the other eight positions covered in our survey, ranked next to the bottom, only surpassing that of help desk or support managers.

Networking managers, who average about 11 years’ experience on the job, can expect to see salary growth of at least 15 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 $73,000, a level that rises to almost $90,000 with 20 years' worth of experience.

By platform, networking managers in mainframe environments edge out other environments, with average salaries of at least $91,000, followed by those in Unix environments with $89,000.

Networking managers in sites with customer relationship management systems commanded the highest rates, averaging close to $86,000. Data warehouse sites follow closely with $85,000.

By industry group, networking managers within the financial services and insurance sectors have the highest annual base salaries, averaging close to $104,000. This is 25 percent higher than the overall average.


NETWORKING MANAGER SALARIES

Year-to-Year Change
2008 2007 2006 2005 2004 2002 1-year change 6-year change
$83,100 $81,300 $78,800 $75,800 $70,500 $71,900 +1.8% +15.6%

Average Annual Bonus
2008 2007 2006 2005 2004 2002 1-year change 6-year change
$5,770 $5,470 $4,200 $5,800 $5,700 $3,940 +5.5% +46.4%

By Experience Level
<10> 10-19 years 20+ years Differential
$73,400 $81,800 $88,900 +15.5%

By Operating System Environment
Mainframe AIX/Unix Non-Mainframe
Linux
Windows Midrange Non-Mainframe
Windows
$91,500 $89,400 $86,100 $82,400 $81,200 $76,000

By Application Environment
CRM Data Warehouse B2B ERP Supply Chain B2C
$85,600 $85,000 $82,200 $81,400 $78,700 $77,100


HELP DESK/SUPPORT MANAGER

Base salaries for help desk and support managers took an upward turn over the past year, our survey finds. These managers -- responsible for diagnosing, troubleshooting, and correcting end-user access problems -- had increases in average salaries of more than eight percent, now averaging more than $74,000. Last year's increase was about three percent.

In the long run, average salary growth for help desk managers has been slow, however. Since 2002, the first year this position was measured in the survey, salaries have increased by about 12%, from an average of $63,000 a year.

Help desk managers tied with DBAs in the survey for the largest percentage gains in average year-to-year base salaries. However, help desk managers’ salaries still rank lowest among the nine management positions covered in our survey, and 13th among all 18 positions.

Along with impressive salary gains, help desk managers also received healthy bonuses over the past yea. This year, help desk managers’ bonuses are averaging almost $5,000, up by 25 percent from last year's survey, and 34 percent the year before.

Help desk managers saw the second-highest bonus increase of any of the 18 positions covered in our survey. However, the amount was still the lowest of the nine management positions covered.

The typical help desk manager in our survey has close to nine years’ worth of industry experience. Help desk managers earn about $70,000 in their first decade, and then rise to $75,000 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 ($80,000) and ERP environments ($76,200).

By platform, those help desk managers at mainframe sites report the highest average base salaries, at more than $81,000. Unix sites follow at about $79,000.

By industry, help desk managers working within the financial services and insurance sector fare best, with average annual base salaries of close to $87,000. Those in computers and software follow with salaries of about $79,000.


HELP DESK/SUPPORT SALARIES

Year-to-Year Change
2008 2007 2006 2005 2004 2002 1-year change 6-year change
$74,200 $68,600 $66,600 $62,700 $59,800 $62,600 +8.2% +11.6%

Average Annual Bonus
2008 2007 2006 2005 2004 2002 1-year change 6-year change
$4,920 $3,940 $2,400 $1,140 $3,300 $2,940 +24.9% +67.3%

By Experience Level
<10> 10-19 years 20+ years Differential
$70,800 $75,300 Insufficient Data +6.4%

By Operating System Environment
Mainframe AIX/Unix Windows Non-Mainframe
Linux
Midrange Non-Mainframe
Windows
$81,200 $78,200 $73,200 $71,500 $69,600 $69,100

By Application Environment
Data Warehouse ERP CRM Supply Chain B2B B2C
$80,000 $76,200 $73,600 $70,500 $69,200 $66,700


INTERNET MANAGER/DIRECTOR

Internet managers -- who oversee their companies' Web presence and e-business channels -- saw a retrenchment in salary rates over the past year. In fact, in the years this position has been measured, salary ranges have been erratic, reflecting not only the fuzziness of the duties of this job but the shifting tides around e-business and Web development as well. This year, Internet managers’ salaries were down by 10 percent, making this the only management-level category to see a decline. However, the current base salary level is still well over the average of $65,000 reported in the first survey back in 2001.

Internet managers’ salaries now rank eighth among the nine management positions covered in our survey.

Whatever ground Internet managers have lost in straight salary appears to have been made up in bonuses. This year, average bonuses awarded to Internet managers have totaled more than $6,000 -- up by almost 50 percent from last year. Internet managers’ bonuses had been steadily declining from year to year. He highest peaks were seen in the first two years the survey was published, having peaked at $6,500 in 2001.

Internet managers’ bonuses were the fifth highest among the nine management positions in the survey.

Internet managers in the survey have, on average, close to nine years of industry experience. The survey also finds that Internet managers working within companies with supply chain management installations have base salaries averaging more than $99,000, leading all other categories. Those focused on CRM systems follow at $93,000.

By platform, Internet managers in Unix computing environments had the highest ranges, averaging above $87,000, followed by those in mainframe environments at about $86,000.


INTERNET MANAGER/DIRECTOR SALARIES

Year-to-Year Change
2008 2007 2006 2005 2004 2002 2001 1-year change 7-year change
$77,800 $86,900 $74,700 $83,300 $71,000 $78,400 $65,200 -10.5% +19.3%

Average Annual Bonus
2008 2007 2006 2005 2004 2002 2001 1-year change 7-year change
$6,070 $4,170 $4,300 $4,890 $5,000 $6,110 $6,500 +45.6% -6.6%

By Operating System Environment
AIX/Unix Mainframe Midrange Windows Non-Mainframe
Windows
Non-Mainframe
Linux
$86,600 $85,600 $78,700 $77,800 $71,250 $70,300

By Application Environment
Supply Chain CRM B2C B2B Data Warehouse ERP
$99,300 $93,000 $88,000 $84,900 $80,900 $79,000


ENTERPRISE ARCHITECT

Enterprise architects, who bridge the gap between IT and business processes, have annual base salaries averaging $103,000, up by about three percent from last year, the first time this positioned was covered in the survey.

Enterprise architects had the third-highest salaries of the nine IT management positions covered in the survey. EAs are categorized as management since 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.

Overall, enterprise architects’ incomes are being augmented by average annual bonuses of $8,475. While this is the third-highest level of any of the 18 positions measured in this survey, it reflects a decline of 10 percent from last year.

Enterprise architects start out at about $94,000 a year (among those with less than 10 years experience), which climbs to more than $111,000 among the more seasoned architects. The average enterprise architect in our survey has about 12 years’ experience.

Enterprise architects working at sites with supply chain management implementations had the highest salary ranges in the survey; averaging more than $107,000. Those working at companies with business-to-business e-commerce and data warehouse systems follow closely behind.

Among platform types, enterprise architects at mainframe sites had the highest average, at $107,000, versus EAs at midrange sites earning $104,500.

By industry group, enterprise architects stand to make the most in service-sector organizations, where the average runs more than $113,000.


ENTERPRISE ARCHITECT

Annual Base Salary
2008 2007 1-year change
$103,000 $99,950 +3.1%

Average Annual Bonus
2008 2007 1-year change
$8,475 $9,460 -10.4%

By Experience Level
<10> 10-19 years 20+ years Differential
$94,400 $104,700 $111,000 +17.6%

By Operating System Environment
Mainframe Midrange AIX/Unix Windows Non-Mainframe
Linux
Non-Mainframe
Windows
$106,750 $104,400 $102,900 $100,100 $93,900 $97,300


NEXT WEEK

Next week we'll examine salaries by region, industry, and company size. Click here to read part 3.