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Project Manager Bonuses

Contractor Magazine published a quick excerpt from FMI's 2007 Contractor Productivity Survey showing the range of bonuses paid to Project Managers.

 BONUS AS % OF BASE  RESPONDENTS
 < 5%  18%
 5-10%  43%
 11-15%  24%
 16-20%  8%
 21-25%  2%
 > 25%  5%

This is a question we get asked often and there is no perfect answer to compensation questions. Since base compensation and benefits can vary so widely it makes little sense to compare bonuses given as a percentage of that base but it is always good to have a little information when making decisions.

A better strategy is to have your accounting systems be able to solidly tie profitability to specific people or groups of people and then talk about compensation in terms of how much profit is generated - a ROI calculation.

Posted by David Brown on March 4, 2007 05:51 AM|Permalink

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