Larry Dowell - Insights from the 2012 MACE Compensation & Benefits Survey

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  • Pleased and honoredDSA 2008, 2010 and 2012 surveyThe need for industry benchmarksSurvey has many uses. For example: CEO compensation, fringe benefit plans, salary competitiveness research
  • 2010: 1552012: 213Wisconsin and Illinois added and has a positive impact on averages such as executive compensation
  • Identical percentage with a much larger sampleWisconsin: Highest percent female 73%Iowa: Highest percent male 55%
  • Industry is aging, same as economy as a whole
  • Salary comparisons are full-time onlyRetirement match increased from 3% in 2010 to 4% in 2012Average amount added to Reserves is up over 100% from 2010
  • During most recent fiscal yearReturning to historical – 75-25Lowest profitability: Iowa 60%-40%Highest profitability: Wisconsin 77%-23%Highest profitability by income are those smaller chambers with budgets of $200,000-$300,000 – 82%
  • Nebraska had highest Admin expense – 54%North Dakota had lowest Program expense – 17%
  • 2010 – Chambers with budgets $100,000-$200,000, only 26% contribute to medical
  • Note 75% in the 71-100% ranges
  • $100,000-$200,000 = 45% penetration$1 million + = 14.29%
  • Concerning – 2006: 6, 2012: 4.5Return to profitability by reducing overhead, i.e. staff
  • Base rate increased – 2010: 235.27, 2012: 247.955% increase
  • Quick review
  • CEO increase only partially explained by Illinois additionMost growth came from within 6 statesExecutive 16% over 2010Membership 1.5% over 2010 and similar for other staff positions
  • Larger the chamber, more likely to have bonus planCEO bonus – percent of chambers increased2010: 45%2012: 47%
  • Note female to male trendNote tenure at chamberNote compensationGood news females 2% increase in women in top income categories
  • Larry Dowell - Insights from the 2012 MACE Compensation & Benefits Survey

    1. 1. Compensation & Benefits Survey 2012Larry Dowell | Dowell Stute and Associates
    2. 2. About MACEFounded in 1972, serves five-state regionIowa, Minnesota, Nebraska, North Dakota, South DakotaPurpose is three-fold• Provide continuing education opportunities• Facilitate connection with industry peers• Develop a regional ethic among chambers of commerceExpanded Product Line• Annual Conference• Compensation & Benefits Survey• Membership Satisfaction Survey• Newsline• Chamber Insight Webinars 2
    3. 3. Board of Directors• Daron Van Helden – Burnsville, MN (Chair)• Andy Peterson – ND Chamber (Vice Chair)• Larry Dowell – Dowell Stute & Associates (Secretary/Treasurer)• Dan Mauk – North Platte, NE• Lori Warner – Beatrice, NE• Kay Breuer – Burlington, IA• Darlene Macklin - Worthington, MN• Ken Warner - Willmar, MN• Sonya Moller – Mitchell, SD• Peggy Woolridge – Huron, SD• Kelvin Hullet – Bismarck, ND• Tom Kuhlman – Okoboji, IA• Vicki Mallory – Algona, IA• Douglas Loon – U.S. Chamber• Evan Nolte – Sioux Falls, SD 3
    4. 4. Survey BackgroundMethodologySelf reporting, sampling, corrupt dataWho was surveyed• Iowa, Illinois, Nebraska, Minnesota, North Dakota, South Dakota,WisconsinWho participated 4
    5. 5. State Participation 49 6WI 26% IL 20% 56SD 4% 8ND 3% IA 19% 42 40 NE 6% 12 MN 23% Trend Lines Overall, participation was up in 2012 from 2010. The addition of Illinois in 2012 increased overall numbers substantially. 5
    6. 6. Gender of Chief Paid Executive36.7% 63.2% Percentages have remained stable since 2008 6
    7. 7. Age of Chief Paid Executive 5% 10% 20% 35%18-29 30-37 38-45 46-55 30% Over 55 7
    8. 8. Interesting 2012 Facts 93% 4% 44.7 92%Of chambers have a Average retirement Average age of Chambers surveyedfull-time Chief Paid match by employer chamber Executive use Facebook. 15%Executive for Executive have a mobile app. $16,225 $35,658 $309.51Average amount Special Projects Manager is Average monthly amountadded to reserves the lowest paid employer pays for Executive’sduring last fiscal year professional staff member auto reimbursement 8
    9. 9. Chambers that operate a CVB Illinois Wisconsin 10% Iowa 38% 33% South Dakota Minnesota 85% 35%Nebraska50% North Dakota 0% 9
    10. 10. Chambers that made a profit77% 55% 71%2008 2010 2012 10
    11. 11. Expense Categories Trends 48% Administration 16% Operations 33% Programs Generally, as budgets increase, the percentage spent on programs also increases.Salaries, benefits, etc. Rent, utilities, buildings, All other expenses equipment, etc. 11
    12. 12. Does chamber directly contribute to cost of medical insurance? 49% 51% 2012 Yes No 2010 Annual Budget Half of chambers surveyed contribute to medical insurance. Over 95% of chambers with budgets over $300,000 contribute to the cost of medical insurance. 12
    13. 13. If yes, what percent is paid for by the Chamber? % Paid Employee Spouse Family 1 – 19 % 6.5% 4.3% 4.3% 20 – 50 % 9.8% 10.6% 10.6% 51 – 70 % 7.6% 8.5% 8.5% 71 – 80 % 33.7% 40.4% 40.4% 81 – 99 % 5.4% 8.5% 8.5% 100 % 37% 27.6% 27.6% 13
    14. 14. Market Penetration $100k $200k $1m↑ ↑ ↑% of businesses who are chamber members drop as chamber grows larger Chamber members Potential chamber members 14
    15. 15. Average # of employees3.5 32.5 21.5 10.5 2006 2008 2010 2012Full-Time Management Full-Time Non-Management Part-Time 15
    16. 16. Membership Models Trends 50% Investment 40% Tiered Dues 10% Other 10% of chambers using membership investment formulas Formula plan on changing their membership model in the next 24 monthsTraditional dues Members choose Hybrid or otherformula factoring in dues levels based approachesemployee on needs or interestcount, etc. 16
    17. 17. Compensation Position Mean Median Minimum Maximum Chief Paid Executive $65,239.86 $58,000.00 $23,900.00 $190,000.00 Vice President $55,007.31 $47,741.00 $29,417.00 $109,463.00Business, Financial or Administrative Manager $48,756.68 $40,000.00 $24,000.00 $93,542.00 Public or Government Affairs Manager $52,659.62 $50,000.00 $26,000.00 $95,000.00 Membership Manager $34,217.98 $33,000.00 (commission only) $81,500.00 Membership Salesperson $29,273.35 $27,840.96 (commission only) $80,000.00 Communications Manager $40,485.81 $38,000.00 $25,000.00 $68,000.00 Small Business Manager $57,216.67 $58,350.00 $36,000.00 $75,600.00 CVB Manager $46,648.84 $38,000.00 $25,168.00 $107,625.00 Special Projects Manager $35,658.80 $35,936.10 $18,000.00 $52,000.00 Information Services Manager $39,718.00 $37,500.00 $22,000.00 $59,250.00 Program Manager $38,790.94 $38,500.00 $19,337.00 $61,285.00 Economic Development Manager $66,129.57 $67,500.00 $27,040.00 $130,000.00 Administrative Assistant or Receptionist $29,029.25 $29,120.00 $16,000.00 $50,700.00 17
    18. 18. Annual Base SalaryMean 2006 2008 2010 2012Chief Paid Executive $54,082 $55,060 $56,257 $65,239Vice President $47,045 $50,198 $53,407 $55,007Membership Manager $32,423 $35,281 $33,686 $34,217 18
    19. 19. Bonus & Pay Increase Position Percent who Average Potential have bonus plan Bonus Chief Paid Executive 47% $7,728.84 Vice President 33% $3,905.56 Business, Financial or Administrative Manager 35% $1,725.00 Public or Government Affairs Manager 42% $2,300.00 Membership Manager 50% $4,248.38 Membership Salesperson 38% $6,336.36 Communications Manager 34% $1,909.09 Small Business Manager 28% $1,000.00 CVB Manager 39% $2,370.00 Special Projects Manager 43% $3,466.67 Information Services Manager 50% $1,020.00 Program Manager 54% $1,742.11 Economic Development Manager 35% $5,700.00 Administrative Assistant or Receptionist 28% $989.86 19
    20. 20. Profile of the Average Chamber Executive $50,000 and $50,001 - $100,001 - $200,001 - below $100,000 $200,000 $300,000 • Female • Female • Female • Female • 39.4 years old • 45 years old • 43.8 years old • 46 years old • Some College • Bachelor’s • Bachelor’s • Bachelor’s • 1-3 year tenure • 4-6 year tenure • 4-6 year tenure • 7-10 year tenure • 200 members • 200 members • 260 members • 401 members • $28,635 • $36,230 • $46,054 • $51,971 $300,001 - $500,001 - $750,001 – More than $500,000 $750,000 $1 million $1 million • Female • Male • Male • Male • 45 years old • 46 years old • 39 years old • 47 years old • Bachelor’s • Bachelor’s • Bachelor’s • Bachelor’s • 7-10 year tenure • 7-10 year tenure • 11-15 year tenure • 11-15 year tenure • 470 members • 607 members • 836 members • 1,154 members • $67,246 • $82,433 • $94,000 • $131,825 20
    21. 21. Conclusion Full survey report will be posted on the MACE website June 15thJun Chambers who participated will receive a code for a complimentary copy. Those 15 who did not participate can purchase the report for $452012 Chambers desiring custom reports or specific data requests should be directed to: Carrie Kirkpatrick, Dowell Stute & Associates carrie@dowellstute.com | 651-221-0850 21
    22. 22. Thank youAny questions?

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