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Compensation & Benefits Survey




                                             2012


Larry Dowell | Dowell Stute and Associates
About MACE
Founded in 1972, serves five-state region
Iowa, Minnesota, Nebraska, North Dakota, South Dakota

Purpose is three-fold
• Provide continuing education opportunities
• Facilitate connection with industry peers
• Develop a regional ethic among chambers of commerce

Expanded Product Line
• Annual Conference
• Compensation & Benefits Survey
• Membership Satisfaction Survey
• Newsline
• Chamber Insight Webinars

                                                        2
Board of Directors
•Andy Peterson – ND Chamber (Chair)
• Larry Dowell – Dowell Stute & Associates (Secretary/Treasurer)
• Dan Mauk – North Platte, NE (Vice Chair)
• Lori Warner – South Sioux City, 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
• Sharyle Sands – Columbus, NE
• Ruthe Batulis – Eagan, MN
• Carmen Schramm – Yankton, SD

                                                                   3
Survey Background
Methodology
Self reporting, sampling, corrupt data

Who was surveyed
• Iowa, Illinois, Nebraska, Minnesota, North Dakota, South Dakota,
Wisconsin

Who participated




                                                                     4
State Participation
                                                                   49
                                                          6
WI 26%
                                       IL 20%                           56
SD 4%
                                                          8
ND 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
Gender of Chief Paid Executive
36.7%                                    63.2%

      Percentages have remained stable since 2008




                                                    6
Age of Chief Paid Executive
 5%      10%      20%               35%

18-29   30-37     38-45             46-55



                          30%


                          Over 55




                                            7
Interesting 2012 Facts
         93%                      4%                     44.7                  92%
Of chambers have a        Average retirement    Average age of        Chambers surveyed
full-time Chief Paid      match by employer     chamber Executive     use Facebook. 15%
Executive                 for Executive                               have a mobile app.


        $16,225                           $35,658                          $309.51
Average amount                     Special Projects Manager is   Average monthly amount
added to reserves                  the lowest paid               employer pays for Executive’s
during last fiscal year            professional staff member     auto reimbursement


                                                                                     8
Chambers that operate a CVB
      Illinois                                    Wisconsin

    10%                     Iowa                  38%
                            33%
                 South Dakota                        Minnesota
                 85%                                35%
Nebraska
50%                                North Dakota
                                     0%
                                                          9
Chambers that made a profit
77%        55%         71%




2008       2010        2012


                              10
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
Does chamber directly contribute to
    cost of medical insurance?
                        49%                                 51%
          2012                Yes                               No
          2010

        Medical Insurance
        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
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
Market Penetration
         45%                        29%                         14%
   $50k                       $200k                      $750k
    ↑                           ↑                          ↑



% of businesses who are chamber members drop as chamber grows larger


          Chamber members                   Potential chamber
                                            members



                                                                       14
Average # of employees
3.5
  3
2.5
  2
1.5
  1
0.5
          2006         2008         2010             2012

Full-Time Management      Full-Time Non-Management          Part-Time




                                                                        15
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 months
Traditional dues       Members choose         Hybrid or other
formula factoring in   dues levels based      approaches
employee               on needs or interest
count, etc.


                                                                               16
Compensation
            Position               Mean        Median         Minimum         Maximum

     Chief Paid Executive       $65,239.86   $58,000.00     $23,900.00      $190,000.00

    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
        CVB Manager             $46,648.84   $38,000.00     $25,168.00      $107,625.00
      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
                                $29,029.25   $29,120.00     $16,000.00      $50,700.00
        Receptionist




                                                                              17
Annual Base Salary
Mean                   2006      2008      2010      2012
Chief Paid Executive   $54,082   $55,060   $56,257   $65,239


Vice President         $47,045   $50,198   $53,407   $55,007

Membership Manager     $32,423   $35,281   $33,686   $34,217




                                                      18
Bonus & Pay Increase
               Position              Percent who     Average Potential
                                   have bonus plan        Bonus
        Chief Paid Executive            47%             $7,728.84

       Membership Manager               50%             $4,248.38

      Membership Salesperson            38%             $6,336.36

     Communications Manager             34%             $1,909.09

           CVB Manager                  39%             $2,370.00

         Program Manager                54%             $1,742.11

   Economic Development Manager         35%             $5,700.00
     Administrative Assistant or
                                        28%              $989.86
           Receptionist

                                                                         19
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
Conclusion
               Full survey report is available on MACE
               Website
Jun            www.MidAmericaChamberExecutives.com
       15             Chambers desiring custom reports or
2012                  specific data requests should be directed
                      to: Carrie Kirkpatrick
                      Dowell Stute & Associates
                      carrie@dowellstute.com
                      651-221-0850


                                                         21
Thank you

Any questions?

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MACE Compensation & Benefits Results - Iowa

  • 1. Compensation & Benefits Survey 2012 Larry Dowell | Dowell Stute and Associates
  • 2. About MACE Founded in 1972, serves five-state region Iowa, Minnesota, Nebraska, North Dakota, South Dakota Purpose is three-fold • Provide continuing education opportunities • Facilitate connection with industry peers • Develop a regional ethic among chambers of commerce Expanded Product Line • Annual Conference • Compensation & Benefits Survey • Membership Satisfaction Survey • Newsline • Chamber Insight Webinars 2
  • 3. Board of Directors •Andy Peterson – ND Chamber (Chair) • Larry Dowell – Dowell Stute & Associates (Secretary/Treasurer) • Dan Mauk – North Platte, NE (Vice Chair) • Lori Warner – South Sioux City, 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 • Sharyle Sands – Columbus, NE • Ruthe Batulis – Eagan, MN • Carmen Schramm – Yankton, SD 3
  • 4. Survey Background Methodology Self reporting, sampling, corrupt data Who was surveyed • Iowa, Illinois, Nebraska, Minnesota, North Dakota, South Dakota, Wisconsin Who participated 4
  • 5. State Participation 49 6 WI 26% IL 20% 56 SD 4% 8 ND 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. Gender of Chief Paid Executive 36.7% 63.2% Percentages have remained stable since 2008 6
  • 7. Age of Chief Paid Executive 5% 10% 20% 35% 18-29 30-37 38-45 46-55 30% Over 55 7
  • 8. Interesting 2012 Facts 93% 4% 44.7 92% Of chambers have a Average retirement Average age of Chambers surveyed full-time Chief Paid match by employer chamber Executive use Facebook. 15% Executive for Executive have a mobile app. $16,225 $35,658 $309.51 Average amount Special Projects Manager is Average monthly amount added to reserves the lowest paid employer pays for Executive’s during last fiscal year professional staff member auto reimbursement 8
  • 9. Chambers that operate a CVB Illinois Wisconsin 10% Iowa 38% 33% South Dakota Minnesota 85% 35% Nebraska 50% North Dakota 0% 9
  • 10. Chambers that made a profit 77% 55% 71% 2008 2010 2012 10
  • 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. Does chamber directly contribute to cost of medical insurance? 49% 51% 2012 Yes No 2010 Medical Insurance 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. 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. Market Penetration 45% 29% 14% $50k $200k $750k ↑ ↑ ↑ % of businesses who are chamber members drop as chamber grows larger Chamber members Potential chamber members 14
  • 15. Average # of employees 3.5 3 2.5 2 1.5 1 0.5 2006 2008 2010 2012 Full-Time Management Full-Time Non-Management Part-Time 15
  • 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 months Traditional dues Members choose Hybrid or other formula factoring in dues levels based approaches employee on needs or interest count, etc. 16
  • 17. Compensation Position Mean Median Minimum Maximum Chief Paid Executive $65,239.86 $58,000.00 $23,900.00 $190,000.00 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 CVB Manager $46,648.84 $38,000.00 $25,168.00 $107,625.00 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 $29,029.25 $29,120.00 $16,000.00 $50,700.00 Receptionist 17
  • 18. Annual Base Salary Mean 2006 2008 2010 2012 Chief Paid Executive $54,082 $55,060 $56,257 $65,239 Vice President $47,045 $50,198 $53,407 $55,007 Membership Manager $32,423 $35,281 $33,686 $34,217 18
  • 19. Bonus & Pay Increase Position Percent who Average Potential have bonus plan Bonus Chief Paid Executive 47% $7,728.84 Membership Manager 50% $4,248.38 Membership Salesperson 38% $6,336.36 Communications Manager 34% $1,909.09 CVB Manager 39% $2,370.00 Program Manager 54% $1,742.11 Economic Development Manager 35% $5,700.00 Administrative Assistant or 28% $989.86 Receptionist 19
  • 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. Conclusion Full survey report is available on MACE Website Jun www.MidAmericaChamberExecutives.com 15 Chambers desiring custom reports or 2012 specific data requests should be directed to: Carrie Kirkpatrick Dowell Stute & Associates carrie@dowellstute.com 651-221-0850 21

Editor's Notes

  1. Pleased and honoredDSA 2008, 2010 and 2012 surveyThe need for industry benchmarksSurvey has many uses. For example: CEO compensation, fringe benefit plans, salary competitiveness researchGeorge BushWhat boards are looking for/skillsPersonality AttributesBenchmarks
  2. 2010: 1552012: 213Wisconsin and Illinois added and has a positive impact on averages such as executive compensationIowa: the majority of Iowa chambers fall into the 100-200k income categories.
  3. Identical percentage with a much larger sampleWisconsin: Highest percent female 73%Iowa: Highest percent male 47%Iowa: Male – 47% / Female – 53%
  4. Industry is aging, same as economy as a wholeIllinois:18-29: 7.5%30-37: 12.5%38-45: 20%46-55: 27.5%55+: 32.5%Iowa chamber execs generally younger than in the rest of the region
  5. 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 2010Illinois: Same full-time percentage3% average retirement match41.8 average age100% use Facebook$7,000 average amount added to reserves – significantly less than region as a whole
  6. 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%
  7. Nebraska had highest Admin expense – 54%North Dakota had lowest Program expense – 17% Iowa – identical to regional average
  8. 2010 – Chambers with budgets $100,000-$200,000, only 26% contribute to medicalIowa:50% directly contribute to medical insurance
  9. Note 75% in the 71-100% rangesIowa:Similar to industry averages, but with only 42% in 71-100% ranges
  10. $50,000 - $100,000 = 45% penetration$200,000-$300,000 = 29%$750,000 - 1 million = 14.29%Iowa: Trend holds true, although less pronounced
  11. Concerning – 2006: 5.75, 2012: 4.6Return to profitability by reducing overhead, i.e. staffIowa:On average, fewer staff – 4.0
  12. Base rate increased – 2010: 235.27, 2012: 247.955% increaseIowa: Greater number using most traditional dues method, few looking to switch in next 2 yearsFormula – 60%Tiered – 35%Other – 7.5%
  13. Quick reviewIowa Averages: Generally lower than average compensation. When broken out by income category, no real pattern emerges. Sometimes slightly above average, sometimes slightly below.Chief Paid Executive by Income: $50,000 and below $26,180.67$50,001 - $100,000$39,750.00$100,001 - $200,000$42,791.53$200,001 - $300,000$66,458.75$300,001 - $500,000 $72,069.87$500,001 - $750,000$91,666.67$750,001 - $1,000,000$139,000.00Chief Paid Executive $64,096.72 (average)Membership Manager $33,773.10 (average)Membership Salesperson $18,000.00 (less than average)Communication Manager $35,625.00 (less than average)CVB Manager $41,695.00(less than average)Program Manager $37,000.00 (less than average)ED Manager $89,992.50 (more than average)Administrative Assistant $21,717.48 (less than average)
  14. 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
  15. Larger the chamber, more likely to have bonus planCEO bonus – percent of chambers increased2010: 45%2012: 47%Iowa: Generally fewer bonus plans offered, but average bonus potentials are the same
  16. Note female to male trendNote tenure at chamberNote compensationGood news females 2% increase in women in top income categoriesIowa: Trends hold true