2017/2018 CSAE BENEFITS & COMPENSATION REPORT

Transcription

1 2017/2018 CSAE BENEFITS & COMPENSATION REPORT

2 2017/2018 CSAE Benefits & Compensation Report 36th Edition CANADIAN SOCIETY OF ASSOCIATION EXECUTIVES

3 36 th Edition Copyright 2017 Canadian Society of Association Executives All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without permission in writing from the publisher. Produced in Canada. This publication is published for information and educational purposes only and should not be considered legal advice. ISBN Digital

4 Published by: Research & Analysis Conducted by: 10 King Street East, Suite 1100 Toronto, Ontario, M5C 1C3 T: F: The Airway Centre, 5925 Airport Road, Suite 200 Mississauga, ON L4V 1W1 Phone: (905) (613) Toll Free: gthacker@portagegroup.com About the Canadian Society of Association Executives Established in 1951, the Canadian Society of Association Executives is a not for profit organization serving the information, advocacy, education and networking needs of association professionals and the business members who provide vital products and services to support the sector. With chapters in Vancouver, Edmonton, Winnipeg, Toronto, Ottawa, Montreal and Halifax, CSAE promotes excellence and professionalism amongst Canada s not for profit community and is dedicated to increasing the effectiveness, image, and impact of associations to better serve their members. For further information, please visit the CSAE website at csae.com. About The Portage Group Inc. The Portage Group Inc. is a consulting group with a shared passion for helping your organization along the various stages of its journey. Our consulting team offers deep sector expertise across multiple service areas that include: Research, Strategy, Search, Human Resources, Organizational Performance and Governance. For more information please visit Disclaimer Although the information in this report has been obtained from sources that The Portage Group Inc. believes to be reliable, this report is based on survey responses during the period of March 21 to April 13, Accordingly, its accuracy and completeness cannot be guaranteed. This report is for information purposes only. All opinions and estimates included in this report constitute the views of survey respondents combined with our judgment as of this date and are subject to revision.

5 TABLE OF CONTENTS EXECUTIVE SUMMARY INTRODUCTION... 1 METHODOLOGY... 1 STUDY LIMITATIONS CASH COMPENSATION HOW DOES YOUR PAYCHEQUE MEASURE UP?... 4 HIGHLIGHTS... 5 CASH COMPENSATION BY LEVEL... 6 COMPENSATION DISTRIBUTION... 8 ASSOCIATION COMPENSATION GROWTH EMPLOYMENT STATUS CASH COMPENSATION BY ASSOCIATION CHARACTERISTICS HIGHLIGHTS ASSOCIATION TYPE GEOGRAPHY ASSOCIATION JURISDICTION ASSOCIATION SIZE AFFILIATION STATUS MEMBERSHIP CHARACTERISTICS CASH COMPENSATION BY DEMOGRAPHICS HIGHLIGHTS AGE GENDER QUALIFICATIONS EXPERIENCE ROLE IN ORGANIZATION INCENTIVE PLANS HIGHLIGHTS PARTICIPATION IN INCENTIVE PLANS INCENTIVE PERCENTAGES EMPLOYMENT BENEFITS HIGHLIGHTS RETIREMENT BENEFITS HEALTH BENEFITS AUTOMOBILE/PARKING BENEFITS FRINGE BENEFITS SUMMARY OF BENEFIT VALUES... 60

6 APPENDIX I: DETAILED COMPENSATION AND BENEFITS IN INDUSTRY/TRADE ASSOCIATIONS APPENDIX II: DETAILED COMPENSATION AND BENEFITS IN PROFESSIONAL ASSOCIATIONS APPENDIX III: DETAILED COMPENSATION AND BENEFITS IN REGISTERED CHARITIES APPENDIX IV: DETAILED COMPENSATION AND BENEFITS IN REGULATORY AUTHORITIES APPENDIX V: DETAILED COMPENSATION AND BENEFITS IN SPECIAL/COMMON INTEREST ASSOCIATIONS APPENDIX VI CHARACTERISTICS OF TOP QUARTILE MANAGEMENT APPENDIX VII SUMMARY OF COMPENSATION BY REGION

7 TABLE OF EXHIBITS 2. CASH COMPENSATION HOW DOES YOUR PAYCHEQUE MEASURE UP?... 4 EXHIBIT 2 1: CASH COMPENSATION BY LEVEL... 6 EXHIBIT 2 2: ADDITIONAL CASH COMPENSATION RATIO... 7 EXHIBIT 2 3: BASE COMPENSATION AS AN HOURLY WAGE... 7 EXHIBIT 2 4: COMPENSATION QUARTILES BY LEVEL... 8 EXHIBIT 2 5: TOTAL CASH DISTRIBUTION BY LEVEL... 9 EXHIBIT 2 6: TOTAL CASH DISTRIBUTION BY LEVEL (CONT D) EXHIBIT 2 7: EXECUTIVE COMPENSATION 2008 TO EXHIBIT 2 8: ASSOCIATION PAYROLLS EXHIBIT 2 9: EMPLOYMENT STATUS CASH COMPENSATION BY ASSOCIATION CHARACTERISTICS EXHIBIT 3 1: ASSOCIATION TYPE EXHIBIT 3 2: REGION OF HEADQUARTERS EXHIBIT 3 3: COMMUNITY SIZE EXHIBIT 3 4: ASSOCIATION JURISDICTION EXHIBIT 3 5: ASSOCIATION REVENUE EXHIBIT 3 6: ASSOCIATION STAFF SIZE EXHIBIT 3 7: AFFILIATION STATUS EXHIBIT 3 8: TYPE OF MEMBERS EXHIBIT 3 9: NUMBER OF MEMBERS (CONSTITUENTS) CASH COMPENSATION BY DEMOGRAPHICS EXHIBIT 4 1: AGE EXHIBIT 4 2: GENDER EXHIBIT 4 3: EDUCATION EXHIBIT 4 4: RELEVANT DEGREE EXHIBIT 4 5: CERTIFICATION EXHIBIT 4 6: CERTIFIED ASSOCIATION EXECUTIVE (CAE ) EXHIBIT 4 7: CSAE MEMBER STATUS EXHIBIT 4 8: YEARS AT CURRENT ORGANIZATION EXHIBIT 4 9: YEARS IN CURRENT POSITION EXHIBIT 4 10: YEARS AT SENIORITY LEVEL EXHIBIT 4 11: YEARS IN THE ASSOCIATION/NOT FOR PROFIT SECTOR EXHIBIT 4 12: YEARS IN THE CURRENT DISCIPLINE EXHIBIT 4 13: PRIOR SECTOR EXPERIENCE EXHIBIT 4 14: ROLE IN ORGANIZATION... 44

8 5. INCENTIVE PLANS EXHIBIT 5 1: PARTICIPATION IN INCENTIVE PLANS EXHIBIT 5 2: ACTUAL, TARGET AND MAXIMUM BONUS BY LEVEL EMPLOYMENT BENEFITS EXHIBIT 6 1: PROPORTION OF EMPLOYEES RECEIVING RETIREMENT BENEFITS EXHIBIT 6 2: RETIREMENT BENEFITS BY LEVEL EXHIBIT 6 3: EMPLOYER RSP CONTRIBUTION PERCENTAGES EXHIBIT 6 4: PROPORTION OF EMPLOYEES RECEIVING HEALTH BENEFITS EXHIBIT 6 5: PROPORTION OF EMPLOYEES RECEIVING HEALTH BENEFITS EXHIBIT 6 6: PROPORTION OF EMPLOYEES RECEIVING AUTOMOBILE BENEFITS EXHIBIT 6 7: AUTOMOBILE BENEFITS BY LEVEL EXHIBIT 6 8: AVERAGE VALUE OF PARKING BENEFITS EXHIBIT 6 9: MILEAGE ALLOWANCES FOR USE OF PERSONAL VEHICLE EXHIBIT 6 10: PROPORTION OF EMPLOYEES RECEIVING FRINGE BENEFITS EXHIBIT 6 11: FRINGE BENEFITS BY LEVEL EXHIBIT 6 12: SUMMARY OF BENEFITS VALUES APPENDIX I: DETAILED COMPENSATION AND BENEFITS IN INDUSTRY/TRADE ASSOCIATIONS PROPORTION OF EMPLOYEES RECEIVING BENEFITS BY LEVEL IN INDUSTRY/TRADE ASSOCIATIONS RETIREMENT BENEFITS BY LEVEL IN INDUSTRY/TRADE ASSOCIATIONS AUTOMOBILE BENEFITS BY LEVEL IN INDUSTRY/TRADE ASSOCIATIONS HEALTH BENEFITS BY LEVEL IN INDUSTRY/TRADE ASSOCIATIONS HEALTH BENEFITS BY LEVEL IN INDUSTRY/TRADE ASSOCIATIONS (CONT D) FRINGE BENEFITS BY LEVEL IN INDUSTRY/TRADE ASSOCIATIONS SUMMARY OF BENEFIT VALUES BY LEVEL IN INDUSTRY/TRADE ASSOCIATIONS COMPENSATION QUARTILES BY LEVEL IN INDUSTRY/TRADE ASSOCIATIONS LEVEL 1: CEO DETAILED COMPENSATION: INDUSTRY/TRADE ASSOCIATIONS LEVEL 2/3: EXECUTIVES DETAILED COMPENSATION: INDUSTRY/TRADE ASSOCIATIONS LEVEL 4: SENIOR MANAGEMENT DETAILED COMPENSATION: INDUSTRY/TRADE ASSOCIATIONS LEVEL 5: FUNCTIONAL MANAGEMENT DETAILED COMPENSATION: INDUSTRY/TRADE ASSOCIATIONS LEVEL 6: NON MANAGEMENT DETAILED COMPENSATION: INDUSTRY/TRADE ASSOCIATIONS LEVEL 7: SUPPORT STAFF DETAILED COMPENSATION: INDUSTRY/TRADE ASSOCIATIONS APPENDIX II: DETAILED COMPENSATION AND BENEFITS IN PROFESSIONAL ASSOCIATIONS PROPORTION OF EMPLOYEES RECEIVING BENEFITS BY LEVEL IN PROFESSIONAL ASSOCIATIONS RETIREMENT BENEFITS BY LEVEL IN PROFESSIONAL ASSOCIATIONS AUTOMOBILE BENEFITS BY LEVEL IN PROFESSIONAL ASSOCIATIONS HEALTH BENEFITS BY LEVEL IN PROFESSIONAL ASSOCIATIONS HEALTH BENEFITS BY LEVEL IN PROFESSIONAL ASSOCIATIONS (CONT D) FRINGE BENEFITS BY LEVEL IN PROFESSIONAL ASSOCIATIONS SUMMARY OF BENEFIT VALUES BY LEVEL IN PROFESSIONAL ASSOCIATIONS COMPENSATION QUARTILES BY LEVEL IN PROFESSIONAL ASSOCIATIONS LEVEL 1: CEO DETAILED COMPENSATION: PROFESSIONAL ASSOCIATIONS LEVEL 2/3: EXECUTIVES DETAILED COMPENSATION: PROFESSIONAL ASSOCIATIONS... 80

9 LEVEL 4: SENIOR MANAGEMENT DETAILED COMPENSATION: PROFESSIONAL ASSOCIATIONS LEVEL 5: FUNCTIONAL MANAGEMENT DETAILED COMPENSATION: PROFESSIONAL ASSOCIATIONS LEVEL 6: NON MANAGEMENT DETAILED COMPENSATION: PROFESSIONAL ASSOCIATIONS LEVEL 7: SUPPORT STAFF DETAILED COMPENSATION: PROFESSIONAL ASSOCIATIONS APPENDIX III: DETAILED COMPENSATION AND BENEFITS IN REGISTERED CHARITIES PROPORTION OF EMPLOYEES RECEIVING BENEFITS BY LEVEL IN REGISTERED CHARITIES RETIREMENT BENEFITS BY LEVEL IN REGISTERED CHARITIES AUTOMOBILE BENEFITS BY LEVEL IN REGISTERED CHARITIES HEALTH BENEFITS BY LEVEL IN REGISTERED CHARITIES HEALTH BENEFITS BY LEVEL IN REGISTERED CHARITIES (CONT D) FRINGE BENEFITS BY LEVEL IN REGISTERED CHARITIES SUMMARY OF BENEFIT VALUES BY LEVEL IN REGISTERED CHARITIES COMPENSATION QUARTILES BY LEVEL IN REGISTERED CHARITIES LEVEL 1: CEO DETAILED COMPENSATION: REGISTERED CHARITY LEVEL 2/3: EXECUTIVES DETAILED COMPENSATION: REGISTERED CHARITY LEVEL 4: SENIOR MANAGEMENT DETAILED COMPENSATION: REGISTERED CHARITY LEVEL 5: FUNCTIONAL MANAGEMENT DETAILED COMPENSATION: REGISTERED CHARITY LEVEL 6: NON MANAGEMENT DETAILED COMPENSATION: REGISTERED CHARITY LEVEL 7: SUPPORT STAFF DETAILED COMPENSATION: REGISTERED CHARITY APPENDIX IV: DETAILED COMPENSATION AND BENEFITS IN REGULATORY AUTHORITIES PROPORTION OF EMPLOYEES RECEIVING BENEFITS BY LEVEL IN REGULATORY AUTHORITIES RETIREMENT BENEFITS BY LEVEL IN REGULATORY AUTHORITIES AUTOMOBILE BENEFITS BY LEVEL IN REGULATORY AUTHORITIES HEALTH BENEFITS BY LEVEL IN REGULATORY AUTHORITIES HEALTH BENEFITS BY LEVEL IN REGULATORY AUTHORITIES (CONT D) FRINGE BENEFITS BY LEVEL IN REGULATORY AUTHORITIES SUMMARY OF BENEFIT VALUES BY LEVEL IN REGULATORY AUTHORITIES COMPENSATION QUARTILES BY LEVEL IN REGULATORY AUTHORITIES LEVEL 1: CEO DETAILED COMPENSATION: REGULATORY AUTHORITY LEVEL 2/3: EXECUTIVES DETAILED COMPENSATION: REGULATORY AUTHORITY LEVEL 4: SENIOR MANAGEMENT DETAILED COMPENSATION: REGULATORY AUTHORITY LEVEL 5: FUNCTIONAL MANAGEMENT DETAILED COMPENSATION: REGULATORY AUTHORITY LEVEL 6: NON MANAGEMENT DETAILED COMPENSATION: REGULATORY AUTHORITY LEVEL 7: SUPPORT STAFF DETAILED COMPENSATION: REGULATORY AUTHORITY APPENDIX V: DETAILED COMPENSATION AND BENEFITS IN SPECIAL/COMMON INTEREST ASSOCIATIONS PROPORTION OF EMPLOYEES RECEIVING BENEFITS BY LEVEL IN SPECIAL/COMMON INTEREST ASSOCIATIONS RETIREMENT BENEFITS BY LEVEL IN SPECIAL/COMMON INTEREST ASSOCIATIONS AUTOMOBILE BENEFITS BY LEVEL IN SPECIAL/COMMON INTEREST ASSOCIATIONS HEALTH BENEFITS BY LEVEL IN SPECIAL/COMMON INTEREST ASSOCIATIONS HEALTH BENEFITS BY LEVEL IN SPECIAL/COMMON INTEREST ASSOCIATIONS (CONT D) FRINGE BENEFITS BY LEVEL IN SPECIAL/COMMON INTEREST ASSOCIATIONS

10 SUMMARY OF BENEFIT VALUES BY LEVEL IN SPECIAL/COMMON INTEREST ASSOCIATIONS COMPENSATION QUARTILES BY LEVEL IN SPECIAL/COMMON INTEREST ASSOCIATIONS LEVEL 1: CEO DETAILED COMPENSATION: SPECIAL/COMMON INTEREST ASSOCIATIONS LEVEL 2/3: EXECUTIVES DETAILED COMPENSATION: SPECIAL/COMMON INTEREST ASSOCIATIONS LEVEL 4: SENIOR MANAGEMENT DETAILED COMPENSATION: SPECIAL/COMMON INTEREST ASSOCIATIONS LEVEL 5: FUNCTIONAL MANAGEMENT DETAILED COMPENSATION: SPECIAL/COMMON INTEREST ASSOCIATIONS LEVEL 6: NON MANAGEMENT DETAILED COMPENSATION: SPECIAL/COMMON INTEREST ASSOCIATIONS. 119 LEVEL 7: SUPPORT STAFF DETAILED COMPENSATION: SPECIAL/COMMON INTEREST ASSOCIATIONS APPENDIX VI CHARACTERISTICS OF TOP QUARTILE MANAGEMENT DETAILED MANAGEMENT COMPENSATION BY LEVEL BY QUARTILE MANAGEMENT QUARTILE COMPARISON: ORGANIZATIONAL CHARACTERISTICS MANAGEMENT QUARTILE COMPARISON: ORGANIZATIONAL CHARACTERISTICS (CONT D) MANAGEMENT QUARTILE COMPARISON: PERSONAL CHARACTERISTICS MANAGEMENT QUARTILE COMPARISON: EXPERIENCE APPENDIX VII SUMMARY OF COMPENSATION BY REGION DETAILED COMPENSATION BY LEVEL BY REGION

11 EXECUTIVE SUMMARY The 2017 edition of the CSAE Benefits & Compensation Report is the 36th in a series of annual compensation reports produced by CSAE. This report is jointly produced by CSAE and The Portage Group (TPG) and provides comprehensive documentation of compensation and benefits currently provided to staff employed in associations and other not for profit organizations across Canada. A CONTINUING UPWARD TREND DOMINATES COMPENSATION FOR 2017 As was the case in 2016, most association staff at all levels have seen increases in compensation in the past 12 months and many anticipate increases in the coming 12 months. For the second year in a row, average cash compensation at the CEO (Level 1) position saw an increase of 5.5%, reaching an average of $135,300 in base salary and $6,900 in additional cash compensation (i.e., bonus or incentive). On the whole, CEO (Level 1) compensation has increased by an average of 2.9% per annum for the past ten years. Cumulative growth since 2008 sits at 11%. Executive Compensation 2008 to 2017 $128,605 $106,139 $90,398 $138,900 $141,338 $138,140 $127,628 $126,246 $121,397 $111,274 $103,616 $102,980 $106,184 $94,447 $94,253 $91,403 $91,835 $92,500 $85,111 $87,368 $86,720 $129,068 $125,000 $99,961 $137,136 $134,791 $102,870 $145,335 $142,247 $113,360 Note: Source for 2008 through 2016 figures was the CSAE Benefits & Compensation Reports. The following levels are not shown in the chart above as there is insufficient data to track their growth at this time: Level 3 Executive Management: Average compensation in 2017 $165,711 base plus $11,132 additional cash compensation $76,496 $66,307 $67,267 $67,612 $69,365 $71,452 $69,402 $68,406 $75,532 $70, Level 1: CEO Level 2: Deputy CEO Level 4: Senior Management Level 5: Functional Managers Level 6 Non Management: Average compensation in 2017 $48,130 base plus $400 additional cash compensation i

12 Level 7 Support Staff: Average compensation in 2017 $51,454 base plus $956 additional cash compensation From Non Management (Level 6 24%) to Executives (Level 2/3 55%), the portion of staff participating in incentive plans increases with seniority. For the three most senior positions, the average bonus paid ranged from 10.4% to 13.1% which is higher than the 2.6% to 4.4% average paid to the lower three staff levels. BENEFITS TRENDS STAY THE COURSE IN 2017 Key benefits trends are summarized below: While the average CEO (Level 1) receives just over $19,500 in benefits, these can total almost $31,000 in extra value to compensation packages for those receiving them. At this level, benefits can surpass incentive compensation in terms of overall importance to the association executive. Among those receiving retirement benefits, the value of the benefits as a percent of compensation does not differ greatly from level to level. The value ranges from 6.5% to 7.0% depending on level. The one exception is Support Staff (Level 7) where the average value is 5.6% of base compensation. At 70%, CEOs (Level 1) continue to be least likely among the staff levels to receive retirement benefits. Retirement benefits are most common among Executives (Level 2/3) and Senior Management (Level 4). RSP plans are more common than other pension plans at most levels. Functional Managers (Level 5) and Non Management (Level 6) staff are less likely than other staff levels to receive RSP plans. At 89%, CEOs (Level 1) are the least likely to receive health benefits. For other levels, between 95% and 99% of staff receive at least some health benefits. Consistent with 2016, approximately one fifth of CEOs (Level 1) and Executives (Level 2/3) receive some form of automobile benefit. For all other levels, the portion receiving the benefit is 5% or less. Most staff at all levels receive fringe benefits. At all levels, laptop computers and professional development are among the top five fringe benefits received. Cell phones for business are increasingly common as fringe benefits at all levels but Support Staff (Level 7). For management levels, professional dues and other conference registration and travel are also in the top five fringe benefits. ii

13 SIZE, ORGANIZATION TYPE AND LOCATION MATTER WHEN IT COMES TO COMPENSATION Consistent with past studies, compensation continues to be higher at all levels in national associations. Industry/trade associations continue to offer the highest compensation at the CEO (Level 1) position. For Executives (Level 2/3), it is special/common interest associations at the top followed by professional associations. Professional associations lead the way for three of the remaining four levels. The exception is Functional Managers (Level 5) where regulators provide the highest compensation. At three of four management levels, associations in Ottawa lead the way in compensation followed closely by Toronto. The exception is Executives (Level 2/3) where British Columbia leads the way. Toronto leads the way for Non Management (Level 6) while Alberta tops the list for Support Staff (Level 7). There is a positive correlation between compensation and organization revenue at all management levels. Compensation growth peaks for Non Management (Level 6) staff in organizations with revenues between $2 million and $5 million. Compensation for management generally increases with staff size. Those in affiliated organizations earn more on average than those in stand alone organizations. This relationship exists at all levels except for CEOs (Level 1) and Support Staff (Level 7) where cash compensation is equal in both types of organizations. AGE, EXPERIENCE, EDUCATION AND ROLE CONTINUE TO INFLUENCE ASSOCIATION COMPENSATION, PARTICULARLY AT SENIOR AND EXECUTIVE LEVELS At most levels, compensation increases with age. The exception is Support Staff (Level 7) where there is no clear link between age and compensation. Five types of experience were included in this year s survey: time at the current organization, time in the current position, time spent at current seniority level, experience in the discipline and sector experience. For all five measures, compensation generally increases with years of experience. Compensation for CEOs (Level 1) and Executives (Level 2/3) is slightly higher among those who have not previously worked in the sector. The likelihood of holding a Master s degree generally increases with seniority. Education has a positive impact on compensation in the sector; however, not all levels of education increase compensation at all staff levels. Going from a college degree to a university iii

14 degree increases compensation at most levels. The biggest increase is at the CEO (Level 1) position where compensation increases by 35% on average. Having a degree relevant to the position has a positive impact on compensation at all levels except for Executives (Level 2/3). A relevant certification has a positive impact on compensation at all levels except for CEOs (Level 1) where the difference is negligible. CEOs (Level 1) with significant policy power generally earn up to 1.5 times more than those with a strictly administrative function. THE WAGE AND SENIORITY GAP CONTINUES BETWEEN GENDERS As in previous years, the 2017 study shows a wage gap between genders at the executive levels. The gap is widest for Support Staff (Level 7) where male compensation is 31% more than female compensation. At 23% and 20%, respectively, the gap also exists among CEOs (Level 1) and Functional Managers (Level 5). As seen in previous studies, there is a relationship between gender and seniority with the percentage of female staff decreasing significantly with seniority. While at the lower three staffing levels 73% or more of staff are female, this decreases to 56% for the CEO (Level 1) and 50% for Executive (Level 2/3) roles. iv