2006 Medical Devices Compensation Survey

2006 Medical Devices Compensation Survey

The Survey Group
2006 Medical Devices Compensation Survey:
Analysis and Results
MassMEDIC Seminar
Copyright © 2006 by
The Survey Group
One Pope Street, Suite 200
Wakefield, MA 01880
(781) 279-9994
www.thesurveygroup.com
All Rights Reserved.
September 19, 2006
Company Overview
Established in 1961, The Survey Group is a member-based human
resources information, survey and consulting firm.
The Survey Group (TSG) provides its 600 member organizations with
the highest quality, most comprehensive regional compensation and
benefits survey data available. The Survey Group also offers
members unlimited access to an extensive library of human resource
surveys, periodicals, books and manuals published by other
organizations. The professional staff is available to answer HR
related questions and locate data from these resources.
TSG’s consulting practice provides human resources consulting to
both member and nonmember organizations in areas such as
compensation program design, performance management, benefits
analysis and organizational climate surveys.
1
Presenter
David K. Weaver, President of The Survey Group, leads
the member services, survey management and consulting
functions for the organization. Since joining TSG he has
worked with companies in a variety of industries on a wide
range of projects such as the design of compensation
programs and incentive plans, performance appraisal system
development and training, and employee climate surveys.
Before joining The Survey Group, he held management and
professional compensation and human resources positions at
Liberty Mutual Insurance, Hewlett-Packard Company and
Honeywell. He is an adjunct faculty member for Northeastern
University and Newbury College, where he teaches
undergraduate courses in Compensation Management and
Human Resources Management.
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Medical Devices
Compensation Survey

Produced through a partnership between The Survey
Group and MassMEDIC

Jobs chosen by members of the MassMEDIC HR
Committee

Data collected May - June, results published
September

33 companies participated, 70% TSG members, 82%
MassMEDIC members

Privately held 42%, Public 58%

Sales revenue: Less than $50M
$50M to $300M
$Greater than $300M
45.5%
33.3%
21.2%
3
Salary Increase Programs

Frequency of Salary Increases




Common Review
Anniversary Review
Fixed number of months from previous
increase
Pay Philosophy



50th Percentile
Average
Between 50th and 75th Percentile
4
Salary Structures



Majority of companies have
formal salary ranges
Typically reviewed annually
Over 50 percent of companies
adjust salary ranges every 12
months
5
Stock Options




Most companies grant stock options
Options given to all levels of the
organization
Typically granted on a discretionary
basis for individual or group
performance
Options are usually granted annually
or upon hire
6
Merit Increases
2006 Budget
Med Devices
Biotech
TSG
Overall
Nonexempt
3.7%
3.7%
3.5%
Exempt
3.8%
3.7%
3.5%
Executive
3.8%
3.7%
3.6%
Employee Group
7
Total Increases
2006 Budget
Med Devices
Biotech
TSG
Overall
Nonexempt
4.4%
4.2%
3.9%
Exempt
4.4%
4.2%
3.9%
Executive
4.4%
4.2%
3.9%
Employee Group
8
Structure Movement
2006 Adjustments
Med Devices
Biotech
TSG
Overall
Nonexempt
3.3%
2.8%
3.0%
Exempt
3.1%
2.8%
3.0%
Executive
3.1%
2.8%
3.0%
Employee Group
9
Merit Increase Budgets
2007 Projections
Executive
Exempt
Nonexempt
TSG
3.6%
3.5%
3.5%
Compensation Resources
3.5%
3.5%
3.5%
Mercer
3.8%
3.6%
3.6%
Conference Board
3.8%
3.5%
3.5%
10
Salary Increases
5-Year Merit Trend
3.5%
3.5%
3.5%
3.5%
3.5%
2003
2004
2005
2006
2007
11
Salary Structure
Movement
2007 Projections
Executive
Exempt
Nonexempt
TSG
3.0%
3.0%
2.9%
Compensation Resources
2.8%
2.8%
2.9%
Mercer
2.9%
2.8%
2.8%
Conference Board
2.5%
2.7%
2.7%
12
Structure Movement
5-Year Structure Trend
2.3%
2003
2.7%
2.9%
3.0%
2005
2006
2007
2.1%
2004
13
Job Family Observations


Engineering jobs paid competitively at the career
levels
Survey Job Title
2006 Medical Devices
Comp Survey
Avg Base Salary
2006 TSG Benchmark
Comp Survey
Avg Base Salary
Percent
Difference
Mechanical Engineer IV
$96,100
$94,900
+1.2%
Mechanical Engineer III
$82,400
$79,000
+4.1%
Mechanical Engineer II
$72,500
$66,200
+8.7%
Sales jobs paid in line with other industries with a
more aggressive base/incentive mix in the
highest level job
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Job Family Observations


Quality jobs paid on par with other
manufacturing sectors
Regulatory Affairs and Clinical Research jobs tend
to lag the Biotechnology Industry
2006 Medical Devices
Comp Survey
Avg Base Salary
2006 Biotechnology
Comp Survey
Avg Base Salary
Percent
Difference
Director, Regulatory Affairs
$136,800
$158,800
-16.1%
Manager, Regulatory Affairs
$101,000
$113,900
-12.8%
Sr. Regulatory Affairs Specialist
$79,400
$88,400
-11.3%
Regulatory Affairs Specialist
$64,500
$64,100
+0.6%
Survey Job Title
15
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