SCDigest
Editorial Staff
SCDigest Says: |
Overall, supply management professionals earned 6.8 percent more in 2008 than in 2007, with an average salary (including base pay and bonuses) of $98,117.
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Most observers believe the role of procurement and sourcing continues to rise in importance in most organizations – a role that, in some respects, may be even greater during the current downturn.
So, it should not be a surprise that the annual Institute for Supply Management (ISM) salary report shows solid overall growth in compensation for purchasing and procurement professionals.
The study collected responses from just over 1000 supply managers from across the US. In general, SCDigest would expect the numbers to be somewhat biased to the upside, as those feeling good about their salaries may be more likely to respond to the survey than those feeling less good.
Overall, supply management professionals earned 6.8 percent more in 2008 than in 2007, with an average salary (including base pay and bonuses) of $98,117. The median salary, however, was slightly lower, at about $84,000.
More over, 35% reported salaries of over $100,000, up from 31% the prior year.
Chief Procurement Officers reported an annual salary of $256,000, although that seems on the low side for large corporations if bonuses and stock options are considered.
The data is perhaps most interesting for comparative purposes in looking at some of the other slices of the results.
For example, by title level, in addition to the CPO number listed above, compensation came in as follows:
- VP of Purchasing or Procurement: $201,000
- Direct Level: $131,000
- Manager Level: $93,000
- “Experienced” Staff Member (3+ years): $69,000
- Entry Level (less than 3 years): $48,000
From an educational perspective, those with doctorate degrees earned by far the most ($193,000). Practitioners with Master’s Degrees earned $125,000, versus $92,000 on average for those with just Bachelor’s degrees.
(Sourcing
and Procurement Article - Continued Below)
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