Paradox Compensation Advisors Partners with DCEO Magazine to Examine DFW’s Mid-Market Compensation

Sept. 22, 2011 - PRLog -- Paradox Compensation Advisors ( http://www.paradoxcompadvisors.com/ ), a leading compensation consulting firm, joined forces with D CEO Magazine to examine compensation trends for mid-size companies in the $50 million to $950 million revenue range. This is the only study of its kind, focused on a key revenue and economic sector in the Dallas-Fort Worth area.

On average, the companies studied had a total revenue increase of 11 percent and net income increase of 33 percent from 2009 to 2010, marking a significant growth among middle-market companies in North Texas. As reported in the study, since 2009, these improved business results had a positive impact on base salaries, short-term bonuses and long-term incentive packages for CEOs. The DFW midsize market paid the boss 15 percent more in total cash compensation (including annual bonuses) in 2010 then they did in 2009.

“With this upswing, companies have increased total direct compensation pay by 7 percent, including incentive pay. Base pay; however, has only increased by 1 percent, which is lower than the nationwide median for employee raises,” said Marsha Cameron, senior partner of Paradox Compensation Advisors.

According to Cameron, while midsize companies are willing to make reductions in challenging times, they don’t always increase compensation spending to its fullest potential once the economy improves. This makes compensation among the mid-size group less predictable than at larger companies. “Caution is still the name of the game going forward for most companies, so income increases will be slow and methodical,” she said.

However, even with a slow and steady approach, the study found that more mid-size companies paid bonuses in 2010 and salary increases were higher, thus indicating that these companies were more confident about their own economic recovery.

“The analysis of CEO incomes shows that there has been a big improvement in revenue growth and net income between 2009 and 2010,” said Cameron, noting this is one of the factors that may have caused bonuses among midsize companies to rise this year.

This study considered various factors when evaluating total compensation packages, such as company size, its stage in the corporate lifecycle, financial results, compensation philosophy and ownership history, as well as the company’s industry, since the economy has impacted some industries more intensely than others.  

To read the full report in D CEO Magazine, visit: http://www.dmagazine.com/Home/D_CEO/2011/September/Highes...

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Paradox Compensation Advisors is a leading consulting firm that develops compensation programs that are aligned with a company’s mission and objectives. Additional information is available at www.paradoxcompadvisors.com.