appa salary survey public power compared to ious and cooperatives march 2004 appa salary survey...
DESCRIPTION
3 Findings $5 to $50 million revenue APPA members tend to pay at or below average for all positions in the analysis. $51 to $300 million revenue APPA members tend to pay above average for lower level positions and progressively below average as positions become more senior. Other Bonus eligibility increases with the size of the organization Long-term incentive programs are virtually non-existent among the smaller organizations and only in place at one-third or less of larger organizations, depending on the position.TRANSCRIPT
APPA APPA Salary SurveySalary Survey
Public Power Public Power Compared to Compared to IOUs and IOUs and CooperativesCooperatives
March 2004March 2004
Prepared by:Milliman USA1301 Fifth Avenue, Suite 3800Seattle, Washington 98101-2605206-504-5545
2
Survey Participants
Name State TypeRevenues
(000)#
CustomersBenefit
Cost/Payroll ServicesBangor Hydro-Electric Co ME IOU $128,025 107,000 45.5% Elec TransCity of Anoka, Electric Utility MN Coop $16,958 11,200 20.0% Sewer, Water, Elec DistDakota Electric Assn MN Coop $107,876 90,267 52.7% Elec DistEast Central Energy MN Coop $59,743 51,286 50.7% Elec DistEnergy United, EMC NC Coop $131,582 137,644 49.0% Elec DistFlathead Electric Coop, Inc. MT Coop $95,760 42,496 55.5% Elec DistGreen Mountain Power VT IOU $201,052 87,120 51.6% Elec Trans, Gen, DistHeartland Rural Electric Coop KS Coop $13,026 10,413 40.0% Elec Trans/DistLake Country Power MN Coop $40,486 44,516 26.0% Elec DistLee County Electric Coop Inc. FL Coop $215,273 157,900 40.2% Elec Trans/Dist, IPMedina Electric Coop Inc. TX Coop $32,102 25,202 51.0% Elec Trans, Gen, Dist, IPMid-Carolina Electric Coop, Inc. SC Coop $62,972 44,515 61.1% Elec DistMountain Electric Coop, Inc. TN Coop $37,653 30,560 57.0% Elec DistNorthern Lights, Inc. ID Coop $18,283 15,653 48.7% Elec Gen/DistPioneer Electric Coop, Inc. KS Coop $39,182 14,546 Elec DistRandolph Elec Membership Corp NC Coop $44,113 30,000 46.1% Elec DistRappahannock Electric Coop VA Coop $168,349 73,044 45.6% Elec DistSatilla REMC GA Coop $65,675 48,000 35.0% Elec DistUnitil Service Corp NH IOU $167,317 96,985 40.0% Elec Trans, Gas, Elec DistUpshur-Rural Electric Coop Corp TX Coop $45,000 40,000 45.0% Elec Dist
Median: $61,358 44,516 46.1%
3
Findings$5 to $50 million revenue
APPA members tend to pay at or below average for all positions in the analysis.
$51 to $300 million revenue
APPA members tend to pay above average for lower level positions and progressively below average as positions become more senior.
Other
Bonus eligibility increases with the size of the organization
Long-term incentive programs are virtually non-existent among the smaller organizations and only in place at one-third or less of larger organizations, depending on the position.
4
FindingsAPPA $5-$50 M vs. Coop/ IOU Market Average
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$45,000 $50,000 $55,000 $60,000 $65,000 $70,000 $75,000 $80,000 $85,000 $90,000 $95,000Job Size
Base
Pay
APPA Coop/IOU Avg
5
Findings
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
Chief Engineer Base Chief Engineer TCC Supv Engineer Base Supv Engineer TCC
Organizations <$50M
APPA Cooop/IOU Published
6
FindingsAPPA Public
Electrics
# Orgs
# Incumb
Avg Base Pay Median
Avg Bonus
*
Avg Total Cash
% Bonus Eligible
% LTI
Eligible Avg Base
Assistant General Manager 5 5 $81,769 $75,700 $0 $81,769 0% 0% $75,623 92.5%
Chief Engineer 6 6 $76,559 $71,586 $3,824 $77,169 17% 0% $72,920 95.2%
Construction Supt 8 14 $64,661 $65,140 $2,744 $65,004 13% 0% $64,714 100.1%
Journeyman Elec Lineworker 9 117 $48,934 $49,800 $2,015 $49,158 11% 0% $48,706 99.5%
Line Division Superintendent 7 11 $70,509 $71,489 $3,755 $71,046 14% 0% $64,186 91.0%
Supervisory Engineer 3 3 $67,775 $74,083 $2,874 $68,733 33% 0% $69,843 103.1%
Custom Survey Findings ($5-$50 million)
Custom Survey
APPA Public
Electrics Avg Base/
Coops-IOUs Avg
7
FindingsAPPA $51-$300 M vs. Coop/ IOU Market Average
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
$45,000 $65,000 $85,000 $105,000 $125,000 $145,000 $165,000 $185,000Job Size
Base
Pay
APPA Coop/IOU Avg
8
Findings
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
Chief Engineer Base Chief Engineer TCC Supv Engineer Base Supv Engineer TCC
Organizations >$50M
APPA Cooop/IOU Published
9
FindingsAPPA Public
Electrics
# Orgs
# Incumb
Avg Base Pay Median
Avg Bonus
Avg Total Cash
% Bonus Eligible
% LTI
Eligible Avg Base
Assistant General Manager 6 6 $149,653 $146,095 $13,530 $158,673 67% 17% $135,910 90.8%
Chief Engineer 11 11 $104,672 $106,000 $6,328 $109,275 73% 18% $99,361 94.9%
Construction Supt 8 15 $67,541 $70,389 $3,659 $69,371 50% 0% $78,573 116.3%
Journeyman Elec Lineworker 11 295 $50,490 $50,000 $1,426 $51,009 45% 11% $54,498 107.9%
Line Division Superintendent 10 23 $75,273 $78,243 $7,306 $79,657 60% 10% $90,035 119.6%
Supervisory Engineer 6 6 $78,188 $84,789 $2,729 $80,588 67% 17% $87,193 111.5%
Custom Survey Findings ($51-$300 million)
Custom Survey
APPA Public
Electrics Avg Base/
Coops-IOUs Avg
10
FindingsAPPA <$50M vs. Published Mkt Avg
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
$45,000 $50,000 $55,000 $60,000 $65,000 $70,000 $75,000 $80,000 $85,000 $90,000 $95,000Job Size
Base
Pay
Mkt Avg APPA
11
Findings
APPA Public
ElectricsBase 25th
Base 50th
Base Avg Base 75th TCC Avg TCC 75th Avg Base
Chief Engineer $87,401 $95,424 $96,225 $107,375 $103,466 $115,317 $72,920 75.8%
Construction Superintendent $72,248 $77,472 $78,122 $88,114 $83,987 $96,119 $64,714 82.8%
Journeyman Electric Lineworker $53,286 $57,561 $58,357 $64,421 $60,047 $66,210 $48,706 83.5%
Line Division Superintendent $64,421 $69,591 $70,585 $77,842 $73,269 $80,924 $64,186 90.9%
Supervisory Engineer $70,151 $77,394 $77,441 $87,664 $83,168 $92,387 $69,843 90.2%
Published <$50 million
Published Market DataAPPA Public
Electrics Avg Base/ Mkt Avg
12
FindingsAPPA >$50M vs. Published Mkt Avg
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$50,000 $70,000 $90,000 $110,000 $130,000 $150,000 $170,000
Mkt Avg APPA
13
FindingsAPPA Public
ElectricsBase 25th Base 50th Base Avg Base 75th TCC Avg TCC 75th Avg Base
Chief Engineer $105,281 $124,368 $125,959 $149,321 $142,064 $168,509 $99,361 78.9%
Construction Superintendent $72,248 $77,472 $78,122 $88,114 $83,987 $96,119 $78,573 100.6%
Journeyman Electric Lineworker $53,286 $57,561 $58,357 $64,421 $60,047 $66,210 $54,498 93.4%
Line Division Superintendent $64,421 $69,591 $70,585 $77,842 $73,269 $80,924 $90,035 127.6%
Supervisory Engineer $68,000 $74,760 $75,754 $85,596 $79,631 $89,971 $87,193 115.1%
Published Market Data APPA Public
Electrics Avg Base/ Mkt Avg
Published $51-$300 million
14
Conclusions Cooperatives and investor-owned utilities already appear to
have established somewhat more aggressive compensation practices than their public counterparts.
Smaller public power utilities appear to be at greater risk in the competition for labor talent than do the larger organizations.
The use of short-term incentives is one approach to providing competitive total cash compensation levels, one which should be given serious consideration in establishing a competitive total pay program.
APPA members with over $50 million in revenue should seriously evaluate their incentive programs given the findings of this survey that bonuses are used by over half of the coops and IOUs.
The relative infrequency of use of long-term incentives may provide APPA members with an opportunity to lead the market by using this type of compensation vehicle.