Top executives are among the highest paid workers in the U.S. economy. However, salary levels vary substantially depending upon the level of managerial responsibility, length of service, and type, size, and location of the firm. For example, a top manager in a very large corporation can earn significantly more than a counterpart in a small firm.
Median annual earnings of general and operations managers in 2002 were $68,210. The middle 50 percent earned between $45,720 and $104,970. Because the specific responsibilities of general and operations managers vary significantly within industries, earnings also tend to vary considerably. Median annual earnings in the industries employing the largest numbers of general and operations managers in 2002 were:
| Management of companies and enterprises | $94,600 |
| Building equipment contractors | 74,550 |
| Depository credit intermediation | 68,110 |
| Local government | 60,470 |
| Grocery stores | 44,980 |
Median annual earnings of chief executives in 2002 were $126,260. Median annual earnings in the industries employing the largest numbers of chief executives in 2002 were:
| Management of companies and enterprises | $145,600 |
| Architectural, engineering, and related services | 133,880 |
| Depository credit intermediation | 123,220 |
| Colleges, universities, and professional schools | 103,120 |
| Local government | 73,990 |
Salaries vary substantially by type and level of responsibilities and by industry. According to a survey by Abbott, Langer & Associates, the median income of chief executive officers in the nonprofit sector was $81,000 in 2003, but some of the highest paid made $600,000.
In addition to salaries, total compensation often includes stock options, dividends, and other performance bonuses. The use of executive dining rooms and company aircraft and cars, expense allowances, and company-paid insurance premiums and physical examinations also are among benefits commonly enjoyed by top executives in private industry. A number of chief executive officers also are provided with company-paid club memberships, a limousine with chauffeur, and other amenities.
Median annual earnings of legislators were $15,220 in 2002. The middle 50 percent earned between $13,180 and $38,540. The lowest 10 percent earned less than $12,130, and the highest 10 percent earned more than $69,380.
Earnings of public administrators vary widely, depending on the size of the governmental unit and on whether the job is part time, full time and year round, or full time for only a few months a year. Salaries range from little or nothing for a small-town council member to $400,000 a year for the President of the United States.
The National Conference of State Legislatures reports that the annual salary for rank-and-file legislators in the 40 States that paid an annual salary ranged from $10,000 to more than $99,000 in 2003. In eight States, legislators received a daily salary plus an additional allowance for living expenses while legislatures were in session.
The Council of State Governments reports in its Book of the States, 2002-2003 that gubernatorial annual salaries ranged from $50,000 in American Samoa to $179,000 in New York. In addition to a salary, most governors received benefits such as transportation and an official residence. In 2003, U.S. Senators and Representatives earned $154,700, the Senate and House Majority and Minority leaders earned $171,900, and the Vice President was paid $198,600.
All organizations have specific goals and objectives that they strive to meet. Top executives devise strategies and formulate policies to ensure that these objectives are met. Although they have a wide range of titles—such as chief executive officer, chief operating officer, board chair, president, vice president, school superintendent, county administrator, or tax commissioner—all formulate policies and direct the operations of businesses and corporations, nonprofit institutions, governments, and other organizations.
A corporation's goals and policies are established by the chief executive officer in collaboration with other top executives, who are overseen by a board of directors. In a large corporation, the chief executive officer meets frequently with subordinate executives to ensure that operations are conducted in accordance with these policies. The chief executive officer of a corporation retains overall accountability; however, a chief operating officer may be delegated several responsibilities, including the authority to oversee executives who direct the activities of various departments and implement the organization's policies on a day-to-day basis. In publicly held and nonprofit corporations, the board of directors ultimately is accountable for the success or failure of the enterprise, and the chief executive officer reports to the board.
The nature of other high-level executives' responsibilities depends upon the size of the organization. In large organizations, the duties of such executives are highly specialized. Some managers, for instance, are responsible for the overall performance of one aspect of the organization, such as manufacturing, marketing, sales, purchasing, finance, personnel, training, administrative services, computer and information systems, property management, transportation, or the legal services department. (Some of these and other management occupations are discussed elsewhere in this section of the Handbook.)
In smaller organizations, such as independent retail stores or small manufacturers, a partner, owner, or general manager often is responsible for purchasing, hiring, training, quality control, and day-to-day supervisory duties.
Chief financial officers direct the organization's financial goals, objectives, and budgets. They oversee the investment of funds and manage associated risks, supervise cash management activities, execute capital-raising strategies to support a firm's expansion, and deal with mergers and acquisitions.
Chief information officers are responsible for the overall technological direction of their organizations. They are increasingly involved in the strategic business plan of a firm as part of the executive team. To perform effectively, they also need knowledge of administrative procedures, such as budgeting, hiring, and supervision. These managers propose budgets for projects and programs, and make decisions on staff training and equipment purchases. They hire and assign computer specialists, information technology workers, and support personnel to carry out specific parts of the projects. Chief information officers also provide organizations with the vision to master information technology as a competitive tool.
Chief executives and legislators at the Federal, State, and local levels direct government activities and pass laws that affect us daily. These officials consist of the President and Vice President of the United States; members of Congress; State governors and lieutenant governors; members of the State legislators; county chief executives and commissioners; city, town, and township council members; mayors; and city, county, town, and township managers. (Many small communities have top government officials who are volunteers and receive no salary. These individuals are not included in the employment or salary data cited in this Handbook statement.)
Most chief executives are elected by their constituents, but many managers are hired by a local government executive, council, or commission, to whom they are directly responsible. These officials formulate and establish government policy and develop Federal, State, or local laws and regulations.
Chief executives, government—like their counterparts in the private sector—have overall responsibility for the operation of their organizations. These executives also appoint department heads, who oversee the civil servants who carry out programs enacted by legislative bodies. As in the private sector, government chief executives oversee budgets and ensure that resources are used properly and that programs are carried out as planned.
Chief executive officers carry out a number of other important functions, such as meeting with legislators and constituents to determine the level of support for proposed programs. Senators and Representatives, State senators and representatives, and county, city, and town commissioners and council members. Legislators introduce, examine, and vote on bills to pass official legislation. In preparing such legislation, they study staff reports and hear testimony from constituents, representatives of interest groups, board and commission members, and others with an interest in the issue under consideration.
Keen competition is expected for top executive positions, with the prestige and high pay attracting a large number of qualified applicants. Because this is a large occupation, numerous openings will occur each year as executives transfer to other positions, start their own businesses, or retire. However, many executives who leave their jobs transfer to other executive positions, which tend to limit the number of job openings for new entrants.
Experienced managers whose accomplishments reflect strong leadership qualities and the ability to improve the efficiency or competitive position of an organization will have the best opportunities. In an increasingly global economy, experience in international economics, marketing, information systems, and knowledge of several languages also may be beneficial.
Employment of top executives—including chief executives, general and operations managers, and legislators—is expected to grow about as fast as the average for all occupations through 2012. Because top managers are essential to the success of any organization, they should be more immune to automation and corporate restructuring—factors that are expected to adversely affect employment of lower level managers. Projected employment growth of top executives varies by industry, reflecting the projected change in industry employment over the 2002-12 period. For example, employment growth is expected to be faster than average in professional, scientific, and technical services and administrative and support services. However, employment is projected to decline in some manufacturing industries.
Few new governments at any level are likely to be formed, and the number of chief executives and legislators in existing governments rarely changes. However, some increase will occur at the local level as counties, cities, and towns take on professional managers or move from volunteer to paid career executives to deal with population growth, Federal regulations, and long-range planning.
Elections give newcomers the chance to unseat incumbents or to fill vacated positions. The level of competition in elections varies from place to place. There tends to be less competition in small communities that offer part-time positions with low or no salaries and little or no staff, compared with large municipalities with prestigious full-time positions offering high salaries, staff, and greater exposure.
.The formal education and experience of top executives varies as widely as the nature of their responsibilities. Many top executives have a bachelor's or higher degree in business administration or liberal arts. College presidents typically have a doctorate in the field in which they originally taught, and school superintendents often have a master's degree in education administration. (For information on lower level managers in educational services, see the Handbook statement on education administrators.) A brokerage office manager needs a strong background in securities and finance, and department store executives generally have extensive experience in retail trade.
Some top executives in the public sector have a background in public administration or liberal arts. Others might have a background related to their jobs. For example, a health commissioner might have a graduate degree in health services administration or business administration. (For information on lower level managers in health services, see the Handbook statement on medical and health services managers.)
Because many top executive positions are filled by promoting experienced, lower level managers when an opening occurs, many top managers have been promoted from within the organization. In industries such as retail trade or transportation, for instance, it is possible for individuals without a college degree to work their way up within the company and become managers. However, many companies prefer that their top executives have specialized backgrounds and, therefore, hire individuals who have been managers in other organizations.
Top executives must have highly developed personal skills. An analytical mind able to quickly assess large amounts of information and data is very important, as is the ability to consider and evaluate the interrelationships of numerous factors. Top executives also must be able to communicate clearly and persuasively. Other qualities critical for managerial success include leadership, self-confidence, motivation, decisiveness, flexibility, sound business judgment, and determination.
Advancement may be accelerated by participation in company training programs that impart a broader knowledge of company policy and operations. Managers also can help their careers by becoming familiar with the latest developments in management techniques at national or local training programs sponsored by various industry and trade associations. Managers who have experience in a particular field, such as accounting or engineering, may attend executive development programs to facilitate their promotion to an even higher level. Participation in conferences and seminars can expand knowledge of national and international issues influencing the organization and can help the participants to develop a network of useful contacts.
General managers may advance to top executive positions, such as executive vice president, in their own firm or they may take a corresponding position in another firm. They may even advance to peak corporate positions such as chief operating officer or chief executive officer. Chief executive officers often become members of the board of directors of one or more firms, typically as a director of their own firm and often as chair of its board of directors.
Apart from meeting minimum age, residency, and citizenship requirements, candidates for a legislative position have no established training or qualifications. Candidates come from a wide variety of occupations—such as lawyer, private sector manager or executive, or business owner—but many do have some political experience as staffers or members of government bureaus, boards, or commissions. Successful candidates usually become well known through their political campaigns and some have built voter name recognition through their work with community religious, fraternal, or social organizations.
Increasingly, candidates target information to voters through advertising paid for by their respective campaigns, so fundraising skills are essential for candidates. Management-level work experience and public service help to develop the fundraising, budgeting, public speaking, and problem-solving skills that are needed to run an effective political campaign. They also should be able to inspire and motivate their constituents and staff. National, State, and some local campaigns require massive amounts of energy and stamina, traits vital to successful candidates.
Virtually all town, city, and county managers have at least a bachelor's degree, and many hold a higher degree. Working in management support positions in government is a prime source of the experience and personal contacts required to eventually secure a manager position. With sufficient experience, they may be hired to manage a small government.
Generally, a town, city, or county manager is first hired by a smaller community. A broad knowledge of local issues, combined with communication skills and the ability to compromise, are essential for advancement in this field.
Advancement opportunities for elected officials are not clearly defined.
Top executives plan, organize, direct, control, and coordinate the operations of an organization and its major departments or programs. The members of the board of directors and lower-level managers also are involved in these activities. Many other management occupations have similar responsibilities; however, they are concentrated in specific industries or are responsible for a specific department within an organization. A few examples are administrative services managers, education administrators, financial managers, food service managers, and advertising, marketing, promotions, public relations, and sales managers.
For a variety of information on top executives, including educational programs and job listings, contact:
Information on appointed officials in local government can be obtained from:
For information on executive financial management careers and certification, contact:
Since 1957, executives have come to TEC to accelerate the growth of their businesses--and of themselves. Since 1957, business leaders have been coming to TEC to accelerate the growth of their businessesÑand of themselves. That growth comes from one-on-one executive coaching, access to a local group of trusted peers, and entrŽe into a worldwide network of more than 10,000 progressive and practiced executives.
Summary of: http://www.teconline.com/
Most government chief executives and legislators are elected; local government managers are appointed. There is less competition for executive and legislative jobs in small communities that offer part-time positions with little or no compensation or staff support. (Many small communities have top government officials who are volunteers and receive no salary. These officials formulate and establish government policy and develop Federal, State, or local laws and regulations. Senators and Representatives, State senators and representatives, and county, city, and town commissioners and council members.
Summary of: http://www.umsl.edu/services/govdocs/ooh20002001/213.htm
The formal education and experience of top executives varies as widely as the nature of their responsibilities. Most government chief executives and legislators are elected; local government managers are appointed. A corporation's goals and policies are established by the chief executive officer in collaboration with other top executives, who are overseen by a board of directors. In publicly held and nonprofit corporations, the board of directors ultimately is accountable for the success or failure of the enterprise, and the chief executive officer reports to the board. In addition, they often nominate citizens to boards and commissions, encourage business investment, and promote economic development in their communities.
Summary of: http://www.bls.gov/oco/ocos012.htm
Where senior managers do not fall within the scope of the proposed new framework, they must have the opportunity to move onto the Agenda for Change arrangements from October 2004. However there is scope to vary individual pay rises according to performance. Where Trusts received a three-star performance rating for the 2002/03 year, there is flexibility to decide separately the value of any performance related pay. Trusts should ensure that such awards can be objectively justified by reference to agreed performance and/or development objectives. We propose to enable senior managers at the appropriate level in Special Health Authorities to move onto contracts in line with the new framework.
Summary of: http://www.dh.gov.uk/PolicyAndGuidance/HumanResourcesAndTraining/ModernisingPay/SeniorStaffManagementContracts/SeniorStaffManagementContractsArticle/fs/en?CONTENT_ID=4064694&chk=OxHGFw
I'm speaking as someone who believes passionately in local government, you could say a true friend, but a critical friend. Of course, if you can exceed the target, then you will be in a win-win situation. These pilots will help demonstrate the benefits of reducing red-tape and ring-fencing and giving councils more control over their finances and more freedom to work in innovative ways. The issues that are highest on the agenda of the public are those closest to home so it is the obvious starting point for getting people more involved in local government in its widest definition. Virtually everything I have said so far has a bearing on the last theme I want to discuss from the debate - and that is leadership.
Summary of: http://www.odpm.gov.uk/stellent/groups/odpm_about/documents/page/odpm_about_032206.hcsp
Most government chief executives and legislators are elected; local government managers are appointed. There is less competition for executive and legislative jobs in small communities that offer part-time positions with little or no compensation or staff support. (Many small communities have top government officials who are volunteers and receive no salary. To do all of these varied tasks effectively, chief executives of large governments rely on a staff of highly skilled aides and assistants to research issues that concern the public. Senators and Representatives, State senators and representatives, and county, city, and town commissioners and council members.
Summary of: http://www.collegegrad.com/careers/manag15.shtml
Competition for top managerial jobs should remain intense due to the large number of qualified applicants and relatively low turnover. General managers and top executives devise strategies and formulate policies to ensure that these objectives are met. In large organizations, their duties are highly specialized. Substantial travel between international, national, regional, and local offices to monitor operations and meet with customers, staff, and other executives often is required of managers and executives. Many general managers and top executives have a bachelor's degree or higher in liberal arts or business administration.
Summary of: http://www.collegegrad.com/careers/manag14.shtml
He was appointed to the Boards of BHP Billiton Limited and BHP Billiton Plc in November 2001 and as Chief Executive Officer in January 2003. ÊHe previously held positions of Chief Development Officer and of Chief Financial Officer. He is a former Director of BTR Plc and former Managing Director of BTR Nylex, following a long career at BOC Plc where his last role was Managing Director Gases Europe. He is a Director of Robert Walters Plc and Chairman of the Sydney 2004 World Energy Congress Organising Committee. He is Chairman of Samancor and a Director of Richards Bay Minerals, Cerro Matoso and Escondida.
Summary of: http://www.bhpbilliton.com/bb/aboutUs/companyOverview/ourExecutiveTeam.jsp
Nonprofit organizations and government agencies implement programs that further their policies within budgetary constraints. General managers and top executives set strategies and try to ensure that their organizations' objectives are met. A corporation's general goals and policies are established by the chief executive officer in collaboration with other top executives, who are overseen by a board of directors. In a large corporation, the chief executive officer meets frequently with subordinate executives to ensure that operations are being carried out in accordance with these policies. Many general managers and top executives have a bachelor's degree or higher in liberal arts or business administration.
Summary of: http://www.umsl.edu/services/govdocs/ooh9899/115.htm
The society promotes effective local government and provides professional development for its members.
Summary of: http://www.solace.org.uk/