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Copyright © 2006 byThe Survey GroupOne Pope Street, Suite 200Wakefield, MA 01880(781) 279-9994www.thesurveygroup.comAll Rights Reserved.
The Survey Group2006 Medical Devices Compensation Survey:
Analysis and Results
MassMEDIC Seminar
September 19, 2006
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Company OverviewEstablished 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.
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PresenterDavid 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 DevicesCompensation 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 45.5%$50M to $300M33.3%$Greater than $300M21.2%
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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
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Salary Structures Majority of companies have
formal salary ranges
Typically reviewed annually
Over 50 percent of companies adjust salary ranges every 12 months
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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
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Merit Increases
2006 Budget
Employee Group Med Devices BiotechTSG
Overall
Nonexempt 3.7% 3.7% 3.5%
Exempt 3.8% 3.7% 3.5%
Executive 3.8% 3.7% 3.6%
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Total Increases
2006 Budget
Employee Group Med Devices BiotechTSG
Overall
Nonexempt 4.4% 4.2% 3.9%
Exempt 4.4% 4.2% 3.9%
Executive 4.4% 4.2% 3.9%
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Structure Movement
2006 Adjustments
Employee Group Med Devices BiotechTSG
Overall
Nonexempt 3.3% 2.8% 3.0%
Exempt 3.1% 2.8% 3.0%
Executive 3.1% 2.8% 3.0%
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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%
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Salary Increases
5-Y ear Merit Trend
3.5% 3.5% 3.5%3.5% 3.5%
2003 2004 2005 2006 2007
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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%
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Structure Movement
5-Year Structure Trend
2.3% 2.1%2.7% 2.9% 3.0%
2003 2004 2005 2006 2007
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Job Family Observations
Engineering jobs paid competitively at the career levels
Sales jobs paid in line with other industries with a more aggressive base/incentive mix in the highest level job
Survey Job Title
2006 Medical Devices Comp Survey
Avg Base Salary
2006 TSG Benchmark Comp Survey
Avg Base SalaryPercent
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%
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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
Survey Job Title
2006 Medical Devices Comp Survey
Avg Base Salary
2006 Biotechnology Comp Survey
Avg Base SalaryPercent
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%
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