IT Leadership Salaries

techie2018

So one thing I'm curious about. I see surveys that say a Sr. Director IT salary is around 150k. I found that to be low. Because many senior engineers are making that much or more. And I can't imagine engineers are getting paid as much as directors. Now I realize directors get much bigger bonuses. But is the bonuses so big that they can make up for a similar salary.

I also realize salaries for engineers and directors, etc will depend based on location, company size, etc. I was just referring to the general case.

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EANx

Don't forget that industry plays a huge role too. Management at a non-profit makes nowhere near what management at a hedge fund would. Then there are definitions, what is a "Director", who are they managing? A development director might make more than one managing the helpdesk.

I also don't think it's that unusual for top-tier engineers to make more than a middle manager. It's far easier for me to hire a manager than it is to replace someone with niche technical expertise.

techie2018

EANx wrote: »

Don't forget that industry plays a huge role too. Management at a non-profit makes nowhere near what management at a hedge fund would. Then there are definitions, what is a "Director", who are they managing? A development director might make more than one managing the helpdesk.

Agreed. That's why I said in general with other factors playing a big part such as industry, company size, etc.

EANx wrote: »

I also don't think it's that unusual for top-tier engineers to make more than a middle manager. It's far easier for me to hire a manager than it is to replace someone with niche technical expertise.

Now this is interesting. While I agree it's much harder to find top tier engineers than managers I didn't realize they were being compensated more.

paul78

techie2018 wrote: »

Now this is interesting. While I agree it's much harder to find top tier engineers than managers I didn't realize they were being compensated more.

Yeah - that's not uncommon in some companies. Also - many of those surveys may get skewed. There are companies that do conduct good salary surveys but that survey information is usually a paid-for-service.

Also - Title inflation is a common problem at many companies. And the pay scale is going to vary greatly depending on the company, location, industry as you noted.

And 150K seems about right to me - for that title - that could be anywhere from 100K to 200K.

To your point about bonus - bonuses and stuff like stock/options can have a huge impact on total compensation of a senior tech leader - especially in certain industries. I don't really know what's in the survey you cited, but if it's just base-compensation - it may not tell the whole picture.

LeBroke

In many places a senior engineer actually will make more than a mid-level manager because they often bring expensive, niche, specialized skills to a company, and often have a lot of insight into technical architecture.

You can take a manager from any other company, drop him in to replace an existing manager, and have him up and running in a few months. It takes a lot more effort to replace, for example, a software architect that designed a large part of your company's product and is responsible for engineering strategy. Even if said architect would report to the manager in question.

UnixGuy

techie2018 wrote: »

..... I see surveys that say a Sr. Director IT salary is around ...

^^ this is your error, the survey is inaccurate

NOC-Ninja

Id think thats too low but this depend on the location, company and how many people report to him.
A top engineer/architect usually gets paid right about the same as an IT in leadership. Contractorsand pre sales makes more than IT directors in most cases.

techie2018

paul78 wrote: »

To your point about bonus - bonuses and stuff like stock/options can have a huge impact on total compensation of a senior tech leader - especially in certain industries. I don't really know what's in the survey you cited, but if it's just base-compensation - it may not tell the whole picture.

Yeah in companies I worked at the higher up you go on the management chain your bonuses increase greatly because you have more influence. But yeah a lot of these salary surveys are just base compensation.

techie2018

LeBroke wrote: »

In many places a senior engineer actually will make more than a mid-level manager because they often bring expensive, niche, specialized skills to a company, and often have a lot of insight into technical architecture.

You can take a manager from any other company, drop him in to replace an existing manager, and have him up and running in a few months. It takes a lot more effort to replace, for example, a software architect that designed a large part of your company's product and is responsible for engineering strategy. Even if said architect would report to the manager in question.

This is true. I've known folks with highly specialized skill sets making crazy money. I'm talking about $175/hr.

LordQarlyn

Hmmm I know niche engineers and IT architects can make more than middle managers, that's understood that they bring unique skills to the table while most middle management don't.
I just never saw director jobs as middle management. Every organization I have been with, directors have been one step below the executive leadership, and while their base compensation is so so, their total compensation has been tied to job performance metrics with bonuses that can easily double their incomes, and that doesn't include stock options. Also, directors have additional perks and benefits typically not provided for those in middle management.

Of course as has been pointed out, the type of organization also determines the compensation structure as well.

paul78

Generally in my experience, senior leaders will have the bulk of their total compensation be variable. The total compensation will be higher than architects, etc.

My experience is mostly in fintech and cash bonuses for senior leaders can range from 15% to 20% which is always based on company and divisional performance goals. Usually, the cash bonus has different percentages based on the overall company, the line-of-business, and the department. Since technology is mostly a cost-center, the goals tend to be net operating income at the department level.

If the company is public, there is also restricted stock and/or option grants. These can also amount to another 20% and more of base but there is usually a vesting schedule. Normally, the vesting schedule is 4 years.

In startups, senior leaders and all employees alike are motivated by the hope that there will be liquidity event. So bonuses is often in the form of options. Senior leaders would be granted a higher percentage. The options will have low strike prices of the common stock and will also have a vesting schedule. Senior leaders who are also founders get a class of share know as founder's shares. And of course, the VC's hold all the preferences.

For private companies - I wouldn't know but I'm guessing it's a bonus and/or profit share. But I've never worked in a company like that.

LeBroke

LordQarlyn wrote: »

Hmmm I know niche engineers and IT architects can make more than middle managers, that's understood that they bring unique skills to the table while most middle management don't.
I just never saw director jobs as middle management. Every organization I have been with, directors have been one step below the executive leadership, and while their base compensation is so so, their total compensation has been tied to job performance metrics with bonuses that can easily double their incomes, and that doesn't include stock options. Also, directors have additional perks and benefits typically not provided for those in middle management.

Of course as has been pointed out, the type of organization also determines the compensation structure as well.

That's kind of very org-specific. A director at a multinational is going to be responsible for a giant division, like "Director of Strategic Projects" or "Director of EMEA" and will be managing hundreds of people.

A director at a medium size business (let's say 500 employees) might be 1 step down from the C-levels, but would only have 5-10 direct reports, essentially making him equivalent to a middle manager in a large firm (although with more autonomy and less oversight).

DatabaseHead

I reported directly to a senior director at my last job....... He was transparent when he eventually left for another company. Both of these companies are fortune 500.

He told me it depends on your value to the company. For instance he said some green bean SR Director over a relatively low risk operations team could make 100,000 even.... 25% bonus....

In some cases if you built rapport with senior leaders and you bring something viewed as valuable you could make slightly over 300,000 base. (That was max).

He also said that you can get bonuses %, for instance manager get 10%, SR 15%, director 20%, SR Dir 25%, but..... In some cases at the senior level your bonus could increase to 30 - 35% (usually 30 was the max but there were some rare circumstances).

Some of the roles were eligible for stock option, which could potentially make up a large part of your compensentation package.