Analysis of 2007 Survey Results
In our earlier preliminary analysis of 2007 product manager salary data,we only had the initial results. The analysis in this article is of thefull data set (excluding people who reported non-product managertitles, like executives). In all of the analyses, total compensation isthe sum of reported salary and reported bonus.
When reviewing 680 responses, we found
- The average product manager total compensation was $107,834
- The median product manager total compensation was $105,000
- The minimum total compensation was $25,000 and the maximum was $390,000
The average and mean salary points are shown in yellow in thefollowing tables to emphasize the regions that have averagecompensation above and below the average and the mean values for theentire data set. We looked at both global regions, and within theUnited States, compensation by state (where 3 or more people were inthe state). We also look at the cost-of-living adjusted values forindividual states.
Compensation by state (without adjusting for COLA (cost of living)
Compensation by state, including COLA adjustment
Compensation by reporting structure
An interesting question that comes up often for product managers isabout reporting structure. The organization into which a productmanager reports can have a significant influence on what the productmanager is asked to prioritize. Product managers often report intomarketing or engineering organizations. This reporting can influencehow much time the product managers get to spend on “strategic”activities. And now, many companies have dedicated, discrete productmanagement organizations. What was very surprising was to see the highvariation in reported compensation, when sorted by the departments intowhich the product managers report.
Product manager industry
Another surprisingly correlated factor is the industry in which theproduct manager operates. Resellers and eCommerce product managersreported significantly lower total compensation than product managersin other high tech industries.
Compensation by age of company
We performed this analysis previously, so we’re including it here.There wasn’t much insight to gain from looking at the variation inaverage compensation as a function of the age of the company.
Compensation by company size and capitalization
There is an argument that large companies won’t pay highcompensation because they manage to the middle, where bureacratic massgets in the way of hiring investments. On the other side of that coin,there is an argument that says that small companies can not afford topay high compensation.
Public companies are also often under scrutiny for managing theircompensation plans, and private companies often do not share equity aspart of compensation packages.
With competing forces along both of these axes, how do product manager compensation rates vary?
First, we need to look at the number of respondents in each category.
With the exception of very large private, and very small publiccompanies, we have a reasonable distribution of responses -surprisingly even, in fact.
We’ll look at compensation when sorting by each of the possibilities.
Sorting product manager compensation by company revenue
Sorting the company size based upon product manager compensation shows the overall trend.
The largest companies pay distinctly better, the smallest companiespay distinctly worse, and the companies in the middle pay about thesame. When we re-organize the data to focus on how those companies arecapitalized, we see some more actionable trending.
Sorting based on private company compensation levels shows thatprivate companies over $25 million in annual revenue pay better thanaverage - and smaller private companies pay below average. There is amarked drop in compensation for those smallest private companies.
Sorting based on public company compensation levels shows that onlythe largest - over $500 million in revenue - public companies paybetter than average. These largest companies pay distinctly better thanthe others. Note that for private companies, working for a very largecompany does not yield such distinct differences.
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