PSMJ A/E Management Salary Survey

Design Firms Report a Median Increase of 15.5% in total compensation, PSMJ Survey Finds

Newton, MA—April 27, 2006—PSMJ Resources, Inc., the A/E/C’s leading management training and consulting firm, today published its 2006 PSMJ A/E Management Salary Survey.

This is the 24th annual edition of the industry-leading resource on A/E compensation. The design firms reported a median increase in base salary of 8.9%. This change is significantly more than the 2.5% growth last year, but falls below the 11% increase reported in the 2002 survey.

Median total direct compensation increased by 15.5%. Most positions experienced this large growth, primarily due to larger bonuses. Median bonuses rose by 43%. However, the 18 survey management positions vary a great deal in salaries and bonuses. Some individuals receive nearly double the total compensation of their peers.

More key findings from the 2006 PSMJ A/E Management Salary Survey:

• Firms forecast a median staff growth rate of 10%, an increase from 8% in 2005. Very large firms expect the most staff expansion.
• Payment of professional dues, licenses, (85% median) and continuing education (81%) continue to be the most frequently offered management fringe benefits.
• Bonus forecasts illustrate cautious optimism in the A/E/C business environment. About 26% of firms expect an increase in bonuses in 2006, and only 6% of firms expect bonuses to decrease this year.
• The size of the firm remains the primary gauge to compare changes in salary levels, bonuses, and many benefits, with larger firms paying higher amounts.
• Senior managers typically worked 10 to 12% overtime, while lower-level managers incurred 7 to 10% overtime.

To download the Management Salary Executive Summary at no charge, visit www.psmj.com/documents/surveys/SAL2006CEOSnapshot.pdf