(' \ C. (o 'I.-. tel S'l SALARIES of GEORGIA OFFICIALS I I State Commission on Compensadon September 1985 SALARIES of GEORGIA OFFICIALS CDMMISSIONERS Received JAN 1 6 1986 UGDo. CU.J.I:. I.Ht=--.i~v,rI,~S A LloRAHIES W. David Padgett , Chainnan 8500 Price Avenue Douglasville, GA 30134 Alan S. Gaynor, Vice Chainnan P. 0. Box 2139 Savannah, GA 31498 Edward J. Harrell 700 Georgia Federal Building P. 0. Box 4987 Macon, GA 30128 William D. Healan, Jr. ll3 West Candler Street Winder, GA 30680 Eugene T. Branch 621 Ridgecrest Road, N. E. Atlanta, GA 30307 Gene Clayton P. 0. Box 65 Tallapoosa, GA 30176 Mike Jones 215 N. Wall Street P. 0. Box 21269 Calhoun, GA 30701 Herbert H. Mabry 501 Pulliam Street, S. W. Atlanta, GA 30312 Nathaniel R. Goldston III Mrs. Adair M. Nunnally 101 Marietta Towers Suite 3618 700 Gornto Road Atlanta, GA 30307 Valdosta, GA 31602 William B. Gunter 3100 Equitable Building Atlanta, GA 30043 Virgil Williams 2055 Webb Gin House Road Snellville, GA 30278 Research Consultant Willys R. Knight 401 State Capitol Atlanta, GA 30334 State Commission on Compensadon September t985 TABLE OF CONTENTS Introduction Georqia Salaries in Relation to National Trend, 1967 to date. Georqia Aqency Heads Co=pared Cost-of-Livinq Cata . . . . 1 . . . . . . . 2 4 Salaries in Other States Executive Branch. Legislative Branch. Judicial Branch 7 27 53 Federal Government Agencies 57 Salaries in Business Top Executives. Administrative Manaqers . . . 62 78 Professional, Technical and Middle Manaqement . . . . . . . 80 Attorney Salaries in the Private Sector 82 Local Salary Supplements for Ju4qes of the Superior Courts and Cistrict Attorneys. 87 Boards and Commissions. 98 Appendix: Salaries under the Georqia Merit System 99 ACKNOWLEDGEMENTS Appreciation is expressed to the Council on State Governments for the information it provides on the compensation of statehouse officials and legislators throughout the nation. We acknowledge also the great assistance of Mr. Pete Hackney, Head of the Legislative Budget Office, and of his deputy, Mr. Robert Hobbs, for much information and other valuable counsel. &tntr lete picture of legislative sation during sessions. For info:nna.tion on interilll ccmpensation a.rxi other direct payments a.rxi services to legislators, see table on Legislative ~ation: Interim Ccmpensation and Other Direct Payments. Key: C - Calendar day L - Legislative day U - Unvouchered V - Voucherei d- day m - DDnth y - year (a) Legislators are reimblrsed !or whatever expenses are incurred in oaning to and fran the capitol one This includes any moving expenses. (V) (b) In addition to the annual salary of $7,500, legislators ~:eceive per diem salary of $20/L. (c) Legislators are provided a le:JSed state car up to $265/m and gasoline credit card. (d) Legislators are ccmpensated for one I'O\Ini trip per two-year session if using other than (e) Paid only to tbose who do not live in the Denver metro area. (f) Unless special session is extended by 3/5 vote of each house a.rxi approved by governor. (g) Travel allowance to neighbor islands during a session on official legislative business, (excluding at a legislative session for neighbor island legislaton~) to be equal to the max.ilmJn allowance for payable to any public officer or employee. Presently, this equals $45/d inter-island, $60/d out-o (h) Legislators are paid $800/m !or January, February and March; $200/ID !or April through December; for interim business. (i) In addition, legislators receive $40/L during special sessions. (j) Member's organizational session per dian and expense allowance are identical to such canpensation for or extraordinary sessions, except payment is based on meeting days rather than calendar days. An !!>"'".....""'.1.111 session may continue !or not DDre than ten legislative, or meeting, days. (k) While regular sessions are Umited to 6CL every other year, per dian SIIDWlt is paid for every calendar the session. (1) Per diem amount is paid !or every calendar day of the session, which is unlimited in duration. (m) In addition, the legislators receive a monthly expense allowance totaling $16,800/y . (n) $6,500 first year of biennial session, $3,500 serond year. (o) Legislators autanatically receive one rowri trip mileage per week. They may claim additional trips max:iJnUD of one per dny) in lieu of lodging for eacb session day. (p) The travel allowance is available only to outstate legislators who must move to St. Paul. (q) While there is no limitation on the mmber of days the legisla.tur~ may be in session, the constitutions the niJilber of day5 for which legislators may receive c::aq>ensation. Beyond the 60th day of the regular the 20th day of the special session, salaries cease a.rxi legislators may only draw upon their expense (r) Legislators have a supplementp travel allowance of up to $3,500 for a regular session and $1,000 for a session. (V) .. . (s) In addition to the annual salary of $100, a legislator receives $3/d for up to 15 legislative days of the special session. (t) Plus $2,064/y mcpense allowance. (u) Legislators wbose tax baDe is in Bisnarck receive $90/d and no expenses. Others receive e:'Cpenses. (U) (v) There is a constitutional limit on legislative sessions of 80 natural days during a biennim. payable each calendar day during a session. (w) Legislators may elect mileage in lieu of per dian, limited to !our round trips per week and (K) Effective Decenber 1, 1984. (y) Legislators are also paid $35/d on a non-session day for a cannittee meeting. (z) When the legislator is unable to attend a session, his salary is reduced accordingly. ( aa) In addition to an arurual salary of $7 ,200/y, the legislators receive a. per dian salary of regular session and 30C of the special session. ( bb) Tra.vel mileage re:imblrsement is 23 cents per mile in personally-owned autan::>biles, 40 cents per highway when traveling in a personally-owned or leased single engine aircraft, and 65 per highway mile when personally-owned or leased twin engine aircraft. Reimbursenent for ccmnercial air transportation may not the next lowest airline fare below first class unless such is not available. (cc) Senators are reimbursed for all rowri trips heme to capitol during session frc::m fur.ds a.ppropriated for purpose. Representatives are re:imblrsed for their first four trips per month frc::m funds a.ppropriated for that purpose; thereafter, re:imblrsement for I'O\Ini trips is taken from member's operating account. (dd) The 25-day limit includes each day the legislator attends veto-override and special sessions and autoorizllll legislative meetings. (eel Legislators may receive a IIIIIXilruD of $9,500 during the regular session, and $2,000 during the special (!!) ln addition to the annual salary of $5,136, legislators receive $35/d in special sessions. (gg) As a.n alternative, any legislator may use any public transportation and be re:imb.lrsed not more than one raM trip weekly. 28 VOUCHERED PAYMENTS* TO LEGISLATORS - ANNUAL (per diem allowance when in session not included) (July 1983) Texas New York Illinois New Jersey Maryland Pennsylvania Virginia Missouri Georgia Arkansas Louisiana Nevada Washington Oregon $156,000 (Senate) est.* 72,000 (House) est.* 25,000 22,000 20,000 7,050 plus secretary-Senate 10,850 House 10,000 plus district of~Lce expense 9,000 5,400 4,800 4,200 3,900 3,250 approx. 2,000 1,320 approx. *Mainly, these are payments for staff salaries; secondly, they cover miscellaneous office expenses like rent for local office. 29 LEGISlATIVE OOt.f>ENSATIOO: Rmli.Ail ANn SPOCIAI. SESSIJ-'1..11111' SI'SSion nnd ~ of spccinl__!lessl~m. __ _ _ Alaska Arizona $48,000 $15,000 0 20.5 Oiie (a) Unllmlted None S40 ($20 for t.hose living IIL'~hi~- Marloopa <:Alunty) for rJr-st 12cx; of t'E>h'U Iar ruJd n I I of spnd nl session; $20 ( S10 for th(Jse II v- lnl{ insltiP counl y) ofl.m 12fC of Arkansas (b) Cali forrtia Colorado (b) f 7,500 (b) $28,110 $14,000 23 = regular session. (U) -----W~kly-=._-:__:_-- _ - _ _llp LQ-$~8/\-(V> (c) One (d) ~-- - - - $ 6 2 2(l(24/4-,wheel drive) Weekly (P.) $40 for those wiKl cto not: I lvP.--Ti1 Connecticut w Delaware 0 Florida $10,500 20 Sl2, 255 15 $12,000 - -~-- ---- - - - - - - - - 20 UnlLilltCd Un 1irnited - Weekly- Demcr metm mea. (U) None --- None $5()/C- f()I~-60C ofllie t"C(..,'lllnr ses<>lon ruJd 1111 of the special Ge01gia S 7,200 session. ( U) 20 Weekly ---$59ft., liml tN!-lo-IO dnys of regula SPsslnn nnd 40 days of "llo-w-'a I"I----------------S:.-:-:13:<-,--=6==5'""0,---------------(.,...g....,):---------,-,U,.--n-.-l.,...lm-l'"'t,-(>d-r--------..;S;!2;;0~sfp!e!c)i.a:_lr snee~isisXWiTosln-n.-n<(..f-)l-,l,.---1?:..,1.slnlms. Idaho Illinois Indiana Iowa $ 4,200 (h) 18 $~000 20 9,600 24 $13,700 (1) ({) (i) 22 Five Weekly Weekly Weekly (U) $44 out-nf-1!~~~~ lllflni~P.rs; s:J!l Msl! monllers. ( U) $36 (U) $65 (U) $30/C for 120 days In 1dl-nunl~n'(l yeaus nnd 100 als aiKflOif~ln!{ m-l21 Maryland $21,000 ,. 19 One pew dian if no cvr-- - for n~euls only. (U) $oR for lod~ln~ nnd mPals. lodglng expense was incurred that day. Mnssadmset ts $3o,()(jQ_____ tncllrded in living See living expense Aimunt rov.=;r-ln~ itilll~ul{l!, niPals ar1 expense allowance. nllo.Yance lodging rnngc>s rrcm $5 to $50, depending on ct I storwe legis I nl 21 ~ bne (r) None $56 (VJ Ne ll::llltlShire .w..... New Jersey $ 100 (s) (s) $25,000 (s) 38/first 45 miles; Unlimlted 1~ thereafter 0 Nea Mexico $75 ~(odd) $75 30C 25 One JIX(even) Nea York--~--- $32,960 0 North Carolina - - S 6~936 ~t) 25 Weekly North Dakota (u) (v) (u) None 20 Weekly Ohio $22,500 20 Weekly Okluhona ~--- $20,000 22 Weekly (w) None None None $55 (V) $50/C (U) (u) None $3.') for c>ac:h night mvay fnm tun~ on slalP 1-u-;;iness durtng rpt..'lrlnr and special SP.ssions . Lc-gislatom are on Iy ecmpPnsntf'Sslon Oregon ~lvania I 8,400 $35 000 (x) Rhode Island $5/L 60L 0 20 Weekly 8 Unlimited (w) $44/C (UJ Up to S757dlur---- None --~------- South Carolina South Dakota $10,000 (y) I 3,200/odd(z) 23 Weekly $50/L (V) 21 Each weekend legis In- 150/1. (U) fm up l.n 35 dnys Tii - S 2,800/even(z) lure is in ses.) 23 (cc) ---None One--- ------ - - S25 sul~lsl.encn. F.v{!~one who TfvPS outRide of Snit 14tkf' or UnviR n- ( 1985) $65/C 60C(odd) $65/C 25(dd) c.elves $35 or ml hmgn hut not lut.h . Venoont 20C(even) $55/L(ee) (ee) $55/L(ee) (ee) 20.5 Weekly if roon t~ntfil $27 . 50 for ro1.m liiifS22 .50 7(,-., - in Montpelier or IIIPals H entlng rocm in tolml.t~t'ltm vicinity; otherwi se or vicinity; $18.75 lf Jtvlng .In ~nla ------ $11,000 20.5 per dian. Weekly Montpelier ot viclnHy. (U) I75C (U)_ _ _ _ _ _ _ __ Washington West Virginia ern 113,750 I 5,136 (ff) (fr) 10 17 One Weekly 144 (U) S20/d for IMnlR (U); $3nld loclgll~g Wisoonsin $22,631.04 . 2'1.5 (gg) Weekly lfy~------~~~ None 20 One w N (V) $41.63/1. when leglslal.or iiinst esfnh1ish t~rary tesldencn ot sl:nte capitol. Othetwisc, $20.81. (U) $60 (U) /}) State LEXJISLATIVE (J)WlENSATION: llfi'DliM PAYMFNI'S ANU amER DIRIr PAYMENTS (1983) Ccilpensation for cxmnittee or official rosiness during interim - - - - --- - --- --------- Per dian o::npensatton for cxmnittee or official business Travel allONance (cents per mile) J>er dian living expenses OLhet d II'Hcl pa)'lllPnts m services to let.:lsl ators Alabama 20 $65 per meeting day Alaska 0 Actual expenses if legislator travels. (V) Arizona $20 -- 20.5 Arkansas $50 23 Mnx. $420/m for "lune orrtce" CXIJenSP.S dul'ing California OJ lorado (a)-- -l62 to max-:- - -- l50!d 20(24f4..:whee1 Cfrive) Actua-l rud riecessRry (V) intedm (V) w w Cbnnecticut Delaware $2,500 20 15-------- $2,500/y ex}lerise--allo.Ynnce (U) $2,500/y expense allotment (U) Florida 20 $50 (V) - - - $1 ,000/m For dlstr1ct office expenses Georgia 20 $59 14,800/y expense allc~nm:e limited In i:he foiJovJng (lUI'(lQSes: rents, dlstrJd offi<'f'I.H) office supplies and materials, ofrtcP. P.Quhmrnt, secretarla I asslslnnce, utili tl~. poRtll!l;e (which shall not he rm n political new!'! letter), clllmunlcntlor~c;, stationery, lu1t~- tng,meals, trnvel rud pm d lm dl rrenmtl al inter-islanO travel; $60 out-of- state. Idaho $35 lllioois I !diana 0 20 Actual expenses (V) (b) 24 $65 ---------$15/d, six days a week, for posln~e nnd misceii.!UIOOUS Hom ,year-ro!J!td i_U_)____ __ Iowa ------------------ l40 22 Actual expenses (V) _ _ _ __ ' Kansas $47 22 $50 (U) $4()(l/m Aprt 1 lhJ'I.mgh llt>ctlniiPI" to defny Kentucky l75 - - -- -~-20.5- ActiJal (V) expenses $50/session stntlonf'I"Y nlllliiYRIIet>; smoiln ___ _ interJm expense allowance -=-10-U--.,.-is-i,.-an-a-----------r$-=7=5--------=2-:-1-o_r_oo_a_ch.,---a.,-i-r-=f-ar-e-------------------':Alla.vrulr.P. for I"P.Imbursnnent 0 f ll"l\VI" 1 f'XJ"IPI~f'S if lives rrore than 100 miles hun Capitol for ni.Lendanr.e nl con h~rl"nces, so ml nnrs :111ct othm orftdal husinPSS appmv~t hy the p1esicling officer, including $111/ct, mlmh.n-sPIIIP.nt of lodging at single occupnnc-y ntf', relmhm-sanent for airlifl(! t h'ket nl nmd1 fan~, nnd reimhurs611P.nt for rpglslrnl.lon fl"t-s (V). $:125/m nlla.vance to t"OVf'r ent, nlllttlf'S and/or exllf)nses for n dlslrid offleP. (V) Also, $1,000 Initial furnl tnn~ nlla.v:UJce, phl"i an additional $250 for t'Rch fom-}enr tt'lm lrfaine l35 -- -~~ (title to furniture rffill\ins wll.h stale). 22 $45 for meals arid 10dg[ng or lrfaryland w ~ Massachusetts $21 for meals only (V) 19 $68 for lodging RJld meals (V) Included in living koount for mileage, meals and expense allowance lodging, ranging fran $5 to Senators receivP. $7 ,050/y, de legntl-s $10 ,R.'"lflly ns district office expense account f01 main- taining ()ffices in legislnlive dist.-lcls $2, 400/y genera1 expense nt Iowa nee $50 depending on distance legislator's district is frnn Michigan Minnesota l48____ Boston 0 26 Max. T45/ri1ght -for 10dgtng, lnte.-lm distriCt lrnv-P.l nlTOiRrni!;- hn.CiC'rl on and actual single roles out- size of district: mllenge relmh.n-sffilf'nl is Mississippi S4o of-state $.15/sq mile, wl th n $45/m hnse at.e ond $250/m maximum (V) 20 Actual expenses: roam, regis- $210/m for rrnnths wl1en le1~lsloture is lkll In tration fee rrust be vouchen~d; session over 15 days Missouri - ---~ 17 meals, tips, etc. unvoucl1ered (c) lodging afil ineals (V) Montana l49.21 - - ~-- 20.5 $38.50 (V) Nevacla 101 24 $47.50 in state: $21 plus $1 ,000 te leptlOne a llc"M"ance/rf'h'lllnr session, "reasonnbl e roan rate" out-ofstate (V) $200/spedal sessl.on (U); postnw' allowmwe of $60/regular session ~<~U~> _ _ _ _ _ _ _ __ Nehraska 21 Actual and necessary eX}lenses (V) ---------------------------------------------------------------------------------------- New ll!lllpshJ re 38 first 45 miles, Actual and necessary (V) 19 thereafter New Jersey 0 NI?N Lfexioo $75 25 Statloner~nge,___l~lephone l telcgt~'lllh ~!!_) Ne.v York North Carol ina 0 25 $50 (U) ----l2,0; St4.5o/d /(; for meals. --D 19.96 $66:41 (U)____ -- --- -- -- $250/m hone office altO-vance (U) Texas (C) Mnx . $55 lOdg-ing and actual cost Senate: nll reasonable nt1 necessary office of meals (V) expenses during lntnrlm; $13,500/m max. starr payroll in session, $12,500/m max stnrr pny- rol 1 during interim. llmL-.e: $f>,5(X)/m opcratin~ account Jn s ession, $[1,500/m du.-lng ~ll~tru~,------------------~Sr6~~~(-~7)------------------2~3~-------Sr2~5~s-u~bs-i~s~t-e_n_ce-.~Ev~e-ry_o_n_e-~~~------ interi~m~.---------------- lives outside of Salt Lake or Davis receives $35 lodging allCN/ance or mileage .rut not ooth. Venoont Virginia Washington West Virginia Wisconsin Wyoming ---------------- $55 20~5 $27.50 for lodging; $22.50 fot meals if renting roan in Montpelier or vicinity; SIR. 75 for meals lloo - -----~- - 20.5 - AotchtieiarwT iesexp(eUn)ses.- - - - - - - - - -- -s:f,OOO/y ilir office suppllffinllfl P:'l, suh;Js- tence, use of private matnrials, fndlitles and personnel, in (lClrfo.mnnee of dul.lt>S not otherwise entitlro to rnimlllu"Sf'IJIP.nl thn111~ tnterJm (V) $35 J7 $20 meals (U) i $30 lodging (V> 20.5 (h) $41.63 when legislator rrust l25 (roi representatives). l75 (for Sf'nalnrs) establish temporary residence at state capitol ---soo $30--- - - ------~ - {U) or actual expenses for out-of-state travel (V) for interim postage and clertcal expetL<>cs for full calendar months in which lf'gislatun~ Is in actual session three dnys or IP.SS Telephone ctedtt ca.n:L"', sl.atlonf"ty w Note: For more 1nfonnation on legislative compensation, see Legislative Compensation: Rewtlar and Special Snsslor~. 0'1 Key: U - Unvouchered V - Vouchererl d - day m - month card. y - yenr (a) Legist a tors are provided a leased state car up to $265 per month and gasoline credit (b) When not In session (i.e. not any day in a calendar week) legislators are pennttted twp round trips a nnnl.h with one $36/d nlluvancP for 11nch trlp(V : (c) Legislative Mannganent Carmittee has authority to set limits. (d) Business trips must be approved by the Speaker of the llouse or the President of the Senate. To be reimhursed for expcl\c:;cs othet than mcnls, thE~ legislators m~~t fill out an expense report and provide receipts. (e) netmbursanents limited to 20 round trips during interim. (f) Ttavel mllenge reiml:ursanent Is 23C per mlJe In personally ctNned autaoobiles, 40C per highway mile tn a twin engine nircrnft. Rc>imh.rrsml(>nt for carmercial air transportation may not exceed the next lctNest airline fare bclCMI first clnss unless such is not avn.llnllle. (g) Legislators recelve this MrJunt each day they attend veto-override aiJfi special sessions and nuthorized leglslallve inte.-Jm .mP.ellni.'R, not to exceed 25 dnys per calendar year. (h) Legislators are entitled to a transportation allOoYance of one round trip weekly to the capt tol. AIDITIOOAL OC&!PmSATIOO FOR SENATE LEAI>EllB (1981-1982) State or President Majority Minority -If other jurisdiction President(a) pro tern leader leader Other Alabama .. $2/d(a) Alaska Arizona Arkansas California Colorado . Connecticut . .$.....5...00/y ...$50/d(b) $..2....,500/y $4,000/b $50/d(b) $3,000/b $50/d(b) $3,000/b Dep. l(aj, Ldr., Dept. Yin. Ldr.: $2,000/b Asst. w -....,J Delaware ... $180.80/m $150.70/m $150.70/m Maj. Ldrs. (5), Asst. Yin. Ldrs. (2): $1,000/b ctmn., V-ctmn., Finance ante.: $150. 70/m Maj. Whip, Min. Whip: $120.50/m Ybrs. Joint Finance Onte.: $60.30/m Florida Georgia .$.2.5,000/y $2,800/y $2,400/y(c) $2,400/y(c) Admin. Flr. Ldr. $2,400/y(c) Asst. Admin. Flr. Ldr. $1,200/y(c) Hawaii. . Idaho . Illinois ... $10,000/y ... ... $10,000/y Asst. Maj . Ldrs. (4), Asst. Min. Ldrs. (3): Indiana ... $3,000/y $1,500/y $2,000/y $6,000/y Asst. Min. Flr. Ldr., Maj. Caucus ctmn., Yin Io.va ...... ... $6,800/y(a,d) $2,300/y $2,300/y Caucus Ovm. , Finance Onte. Cbm .: $1,500/y Kansas ...... $1,~0/y $1,800/y $3,240/y $3,240/y Ways &Means Onte. Chmn.: $3,240/y; Asst. Pres. Pro Tern., Caucus Chmn., Whips: $15/d I.ouisiana Maine .. Maryland . Massachusetts . $32,000/y(e) $3,500/b(f) $5,000/y $38,000/y ......... $..1., 750/b $32,000/y $..1.,750/b $32,000/y Asst. Uaj. Ldr., Asst. Min. Ldr.: $875/b Chmn. Ways &Ueans Onte.: $34,000/y; Asst. Maj. Flr. Ldrs. (2), Asst. Min. Flr. Ldrs . (3), Olmn., Post Audit &Oversight Onte.: $28,000/y Chmn., Jt. Standing Ontes., Chmn., Bills in Third Reading Onte., V--Ovm., fust Audit & Oversight Onte., Asst. V-Clmn., Ways and Means Onte.: $24,000/y AIDITIOOAL a:J(pENSATIOO R.ll SENATE LEADEIIS (Continued) (1981-1982) State or other jurisdiction President(a) President pro tern Majority leader Minority leader Other Michigan $14,000/y $8,000/y Chmn. Appropriations cmte., $1,000/y Minnesota $7 ,400/y( f) $7,400/y(f) $7,400/y(f) Senate Rules cmte. designates up to 3 leadership positions to receive up to 140% of compensation ot other members Mississippi. $34,000(a,g) Missouri. $2,500/y $1,500/y $1,500/y Llontana $5(h) Nebra~ka Nevada $2/d(a,f) (f) (t) (t) Onte. ursanent for actual expenses not to exceed $10,000/year. (f) Plus additional expenses. Uaine: paid at discretion of president as liiiiP sun at end of session; Neveda: $300/regular session, $40/special session for postage, phone, and other camJ.Ulications; North Carolina: $230/m. (g) In lieu of all per dian Slllary and monthly expense allowance. (h) While in session. West Virginia: paid each day of actual floor sessions. (i) Expenses only. (j) Upon request, the Speaker may also receive $750 ex officio payment, $2,400 annual office allowance, $3,000 county office allowance, $300 supplies. (k) During interim when cannittees are not meeting, up to maxinun of 80 days in capitol offices. AIDITIONAL cn.PENSATION Ftll IDWE LEADERS* (1981-1982) State or other jurisdiction Speaker Speaker pro tan Majority leader Minority leader Other Alabama $2/d Alaska Arizona $.5..00/y Arkansas California Colorado Connecticut $..2.,500/y $50/d(a) $4,000/b ...... $50/d(a) $3,000/b $50/d(a) $3,000/b Dep. Spkr.: $3,000/b Dep. Uaj. l.dr., Dep. Uin. Ulr.: $2,000/b Delaware $180.80/m ... $150.70/m $150.70/m Asst. Uaj. l.dr., Asst . Uin. Ulr. : $1,000/b a.m., V-Ornn. Finance Onte.: $150. 70/m ~ Uaj. Whip, Uin. Whip: $120.50/m 0 Florida $25,000/y ... ... ... ...Uenbers, Joint Finance Onte.: $60.30/m Georgia $17,tl00/y $2,800/y $2,400/y(b) $2,400/y(b) Admin. Fir. l.dr. $2,400/y(b) Hawaii Idaho .. Illinois . $10,000/y . .. $7,500/y $10,000/y Asst. Uaj. Ldrs. (4), Asst. Uin. l.drs. (4):$6,000/y Uaj. Whips (2), Uin. Whips (2): $5,000/y Indiana $3,000/y $1,500/y $1,500/y $2,000/y Uaj. Whip, Asst. Uin. Flr. l.dr., Uaj . Caucus Otnn., Uin. Caucus Otnn., Ways and Ueans Onte. Olm.: lava . $6,800/y(c) ... $2,300/y $2,300/y ...$1,500/y Kansas $4,200/y $1,800/y $3,240/y $3,240/y Ways and Yeans Onte. Ovnn. $3,240/y Kentucky Louisiana Maine . $25/d $32,000/y(d) $3,500/b(e) $....1..5/d ...$20/d $1,750/b $..2.0/d $1,750/b ...Uaj. ~ Uin. Caucus Chmn., Uaj. ~ Uin. Whips: $15/d Asst. Maj. l.dr., Asst. Uin. l.dr . : $875/b - Maryland $5,000/y AOOITIONAL cntPENSATIOO FOO lDUSE lEADERS* (Continued) (1981-1982) State or other jurisdiction Speaker Speaker pro tan Majority leader Minority leader Other Massachusetts $38,000/y $32,000/y $32,000/y Olnn. , Ways and Means Onte.: $34 ,000/y Asst. Maj . Flr. Ldrs.(2); Asst . Min. Flor. Ldrs.(3); Florida ............ Public employee/ Canpulsory/ 8.0 Yes 8 62 -1:> Special legislative(e) Optional(e) Georgia Public enployee/ (f) 5.5 Yes 10 60 Special legislative (f) 8.0 Yes 8 62 Hawaii. Public employee Optional 6.0 Yes 10 55 Idaho Public employee Canpulsory 4. 84 Yes 0 65 Illinois Spec ial legislative Optional 10.0 Yes 4 62 Indiana Public employee Optional 3.0 Yes 10 65 Io.va Public employee Optiona l 3.75 Yes 4 65 Kansas Public t:nployee Optional 4.0 Yes 10 65 Kentucky Public employee/ Canpulsory 4.0 Yes 8 65 Special legislative Optional 5.0 Yes 5 65 louisiana Public empl oyee Optional 11.0 Yes lO(g) 60(g) Maine , Public employee Optional 6.5 Yes 10 60 Maryland Special legislative Optional 5.0 Yes 8 60 Massachusetts Public Hnployee Optional 7.0 Yes 6 55 Michigan . Special legislative Optional 7.0 Yes 8(h) 55 Mi nnesota Mi ssissippi . ~ec ial l e~J s lative bl ic enp oyee Canpu}sory Canj>u soryu > 9.0 6.0 Yes Yes lB f\2 65 REI'IRafENI' PFO:JRALIS FOR SfATE LIDISLA'IDRS (Continued) (1981-1982) State or other jurisdiction Retirement system type ldanbership type Legislator's contribution as percent of cnnpensation State goverrment contribution Uininun years legislative service for retirement Age nonnally required for 'tetinment Missouri. ... Special legislative CanpulS>ry 0.0 Yes 6 60 Montana ...... Public employee Optional 6.0 Yes 5(j) 60(j) Nebraska .. ----------------------------No program------------------------------------ Nevada ........... . Special legislative Cmp.JlS>ry 15.0 Yes 8 60 New Hrunpshire.... ------------------------------No progr~--------------------------------------- New Jersey ..... Public employee(c) CanpulS>ry 5.0 Yes 8 60 New Mexico ..... Public employee Optional $125/year Yes 5 65 New York ..... Public anployee Optional/ 5.0 Yes 0 55 Canpulsory(k) 3.0 Yes 10 62 .p. North Carolina ------------------------------No program---------------------------------------- (.11 North Dakota..... . Public employee(!) Ohio........ . ... Public employee Optional(e) 8.5 Yes 5 55 Oklahoma . PubHc anployee Optional 10.0 Yes 6 60(m) Oregon........... . Public employee Optional 0.0 Yes 6 roo. 70 Pennsylvania .... Public employee Optional 5.0 Yes lO(n) 50(o) Rhode Island .. Public enployee(c) Optional 30.0 Yes 8 55 South Carolina... Special legislative Canpuloory 10.0 Yes 8 60 South Dakota.. -----------------------------------No program---------------~----------------------------- Tennessee .. Public employee Optional O.O(p) Yes 4 55 Texas ........... Public employee Optional 8.0 Yes 12 55 Utah............. . Venmnt. Special legislative Optional 3.95 Yes 8 65 ----------------------------~---No program------------------------------------------------- Virginia ... Public employee CanpulS>ry 5.0 Yes 5 65 Washington . Public employee(c) Optional 7.5/5.51 Yes 5 60 West Virginia. Public EJillloyee Optional 3.5/4.5 Yes 5 62 Wisconsin Public anployee Calpllsory 5.5 Yes 0 62 Wyaning.......... . -------------- ------------------No program-------------------------------------------- REI'IREMENI' PFOJRALtS FOR STATE UXJISLA'TORS (Concluded) (1981-1982) (a) If the legislator was serving in 1975-1976 he is covered under a special elected public officers retiranent system. (b) If the legislator had qualified under the separate Teachers Retirement Act before election, he may elect coverage under that Act. Legislator contribution is 8.0%. (c) Special provisions for legislators. (d) Up to $6,000. 5% on all above. (e) legislators may chcose to join the canpulsory statewide public mployee pension systern or the optional (elected officers class) special legislative retirement systern. Florida: If assumed office after July 1, 1972, participation is compulsory. (f) legislator must join one or the other. (g) 12 years legislative service, age 55; 16 years legislative service, any age; 20 years public service, at least 12 of which is legislative, age 50. (h) Not less than 6 years service 1f elected to at least 4 full or partial house tenns, or 2 full or partial senate tenns. (i) Unless over age 64. (j) Eligible for full retirement at age 65 regardless of years of service as a legislator, or after 30 years of service as a legislator regardle~s of age. ~ 0\ (k) Oampulsary for members elected after July 1, 1976. (1) legislative authority for a retirement program exists. Implementation has never taken place. (m) Age 55 with reduced benefits. (n) NLJllber of years of total state service 1f under superannuation age. (o) With three years of legislative service. (p) litigation is pending which could adjust legislators' contribution to 5% of earnings until Novanber 1982 when the noncontributory plan would go into effect. ~ -....,J i)J INSURANCE PROGRAMS FOR STATE LEGISLATORS S'J'l\'l'E NAME Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Hculth Insurance Legislative ncmbership Percentage of state contrib.ltion Legislative rrembership Life Insurance Maximum coverage % of state contribution Sane benefits as dther state eJnployecs No programs *** yes 100% yes Annual salary 0 yes yes 90% 1; 62% F yes Annual salary 1st $5,000 - lQO% yes above $5,000 - 0 yes (a) yes $20,000 (b) yes yes 0 No program *** yes $42.12 yes 3,800 $0. 88/mo.; yes addtl. optional $25,000 addtl. 0 yes 100% 1; 70% F No program *** yes(c) 100% yes(d) Annual salary 0 yes yes 75% yes $18,000 66.6% yes yes 70% yes 18 x monthly 75% yes reported salary yes $14.88 1;$47.34 F yes $15,000 100% yes yes 100% yes $10,000 100% *** STATE NAME Health Insurance Legislative Irembership Percentage of state contribution Legislative Jrembership Life Insurance Maximum coverage % of state contribution Scure benefits as other state employees Illinois yes 100% yes 50% annual 100% yes salary (e) ; addtl. optional addtl. 0 Indiana yes 97% !;73% F yes $13,000 71% yes $10,000-20,000 addtl. optional addtl. 0 Iowa No program . *** Kansas c-Poo Kentucky yes 100% yes $15,624 yes 100% !;40% F(f) yes $5,000 over $5,000 up to $36,000 100% yes 100% yes addtl. 0 Louisiana yes 50% yes $40,000 50% yes Maine yes 100% yes Annual salary 0 *** Maryland yes 90% average No program *** Massachusetts yes 90% yes $2,000 basic 90% yes addtl. optional addtl. 0 to annual salary Michigan yes 100% yes 1~ x annual salary (g) *** STATE NAME Health Insurance Legislative membershiE._ Percentage of state contribution Legislative rrernbership Life Insurance Maximum coverC~ge % of state contribution Sarre benefits as other state employees Minnesota yes up to 56.06/mo.I yes $20,000 100% yes up to 76.94/mo.F up to $100,000 addtl. optional addtl. 0 Mississippi yes 100% yes $15,000 max. 50% yes Missouri yes (h) yes $5,000 100% yes Montana yes ( i) yes $10,000 "(b) yes addtl. optional U """)' Nebraska yes 0 yes $10,000 0 *** Nevada No program (j ) ( j) ( j) *** New Hampshire No program *** New Jersey yes 100% yes 3 x annual salary 50% yes New Mexico No program *** New York yes (a) yes 3 x annual salary 0 yes salary up to $150,000 North Carolina yes 0 No program yes STATE NAME Health Insurance Legislative membership Percentage of state contribution Legislative membership Life Insurance Maximum coverage %of state contribution Same benefits as other state employees North Dakota yes 100% I & F for yes Nearest 1st $1,000 - 100% yes $300 deduct. $1,000 above $27.87/mo. for annual salary $50 deduct. to max. $3,000 Ohio yes Oklahoma yes Oregon yes 70% 100% 100% yes (c, k) 100% *** yes $18,000 100% yes addtl. 0 yes annual salary (k) 100% yes U'1 0 Pennsylvania yes 100% yes $20,000 100% yes Rhode Island yes 0 yes $1,000 0 *** South Carolina yes 36.22/mo. yes $3,000 $0.67/mo. yes South Dakota No program *** Tennessee yes 60% yes $12,000 60% yes Texas yes ( i) yes(i) 2 x annual (i) yes salary Utah yes 80% I & F yes $18,000 56% yes addtl. $30,000 Vermont No program *** STATE NAME Health Insurance Legislative nembership Percentage of state contril::lltion Legislative rrembership Life Insurance Maximum coverage % of state contribution Sarre benefits as other state employees Virginia No program yes up to $1,000 27% yes above annual compensation X 2(1) Washington yes 100% yes $100,000 1st $5,000 - yes 100%; above - 0 Wisconsin yes 90% yes Nearest $1,000 75% yes above annual salary; U.....1.. addtl. optional up to 2 x annual salary addtl. 0 Wyoming West Virginia yes No program 0% yes $10,000; 0 optional to $20,000 *** yps(rn) Key: see next page - STATE NAME Health Insurance Legislative membership Percentage of state contril::A.Jtion , Legislative rrernbe.rship Life Insurance Maximum coverage \ of state contribution Same benefits as other state employees Key: I -- Individual coverage F -- Family coverage (a) Varies; 100 on some individual plans depending on plan and coverage. (b) Included with health coverage. (c) After 1 year. (d) After 3 months. (e) Reduces by 5% a year from age 56 on. (J1 (f) HMO offered as optional health coverage. N (g) State contributes balance after actuarial evaluation. (h) Members pay $10.70/mo; remainder of cost paid by state. ( i) Per month - Hontana: $70.00 fiscal 1982; Texas: combined for health and life; not more than $48.00 fiscal 1982. ( j) Covered with survivors benefits under retirement plan. (k) Salary rounded to next higher thousand. Ohio: leaders and committee chairmen receive additional coverage equal to their compensation for the leadership and/or chair positions held. (1) Creditable compensation (which includes salary, travel expense per diem, office allowance)is used in computing benefits for legislators. (m) Legislators pay full premium. ~erne Court, Chief Justice Judges criminal Appeals, Presiding Judge Associate Judge civil Appeals, Presiding Judge Associate Judge circuit Court Judges District Court Judges pr.ORIDA Supreme Court District Court Circuit Courts GEORGIA Supreme Court, Court of Appeals Sup~rior Court Chief Justice Associate Justice KENTUCKY Supreme Court, Court of Appeals Circuit Courts District Courts Chief Associate Chief Associate LOUISIANA Supreme Court Court of Appeals District Courts MISSISSIPPI Supreme Court, Chancery Courts Circuit Courts Chief Justice Presiding Justice Associate Justice NORTH CAROLINA Supreme Court, Chief Justice Associate Justice Court of Appeals, Chief Justice Judges Superior Court Judges, Senior Judges District Court Chief Judges JUDICIAL BRANCH Salaries in July 1984 $58,500 58,000 57,500 57,000 57,500 57,000 48,000 38,400 Salaries July 1985 $64,350 63,800 63,250 62,700 63,250 62,700 52,800 42,240 67,588 60,994 58,247 66,248 66,248 65,738 54,500 58,977 57,797 56,028 55,438 53,079 45,412 66,566 63,367 60,169 60,000 59,500 59,000 51,000 51,000 67,248 65,856 63,744 62,352 57,192 55,368 46,620 44,832 74,374 67,093 64,072 70,886 70,886 70,340 58,320 60,745 59,718 57,708 57,101 54,671 46,774 66,566 63,367 60,169 60,000 59,500 59,000 51,000 51,000 70,608 69,144 66,936 65,472 60,048 58,140 48,948 47,076 53 SOUTH CAROLINA Supreme Court, Circuit Court Chief Justice Associate Justice TENNESSEE Supreme Court Court of Appeals Trial Level Judges Chief Justice Associate Justices Presiding Judge Associate Judges WEST VIRGINIA Supreme Court Circuit Courts VIRGINIA Supreme Court, Chief Justice Associate Justice *Includes $4,000 travel allowance annual Circuit Courts District Courts Court of Appeals Chief Judge Judges Current Salaries in July 1984 $76,240 72,428 68,807 68,175 65,650 64,135 63,125 60,600 55,000 50,000 72,006 67,540 62,700 56,430 65,163 64,163 $80,814 76,773 72,935 68,175 65,650 64,135 63,125 60,600 62,700 56,430 65,163 64,163 SOURCE: Our own survey conducted in July, 1985 54 Judicial Salaries in Appellate and Trial Courts From: SURVEY OF JUDICIA~ SALARIES, National Center for State Courts, May 1985. This table lists salaries paid to as5()Ciate justices for the highest court and intennediate appellate court, and state-paid salaries of general trial court judges. In states where localities may supplement state-paid salaries, these supplements added to the basic salary are shown in parentheses immediately below the first figure. Salary rang~. based on cost-of-living differences, length of service, or other factors, are also indicated. The boldface figures in parentheses immediately following salaries indicate the state's ranking (high to low) in salaries paid to judges at each level. The last column indicates the date of the last salary change for highest, intennediate appellate, or general trial court judges for each state court system. The mean average, median, and range for each level of court is shown following Wyoming. For the highest and the general trial courts these averages are based on figures for the SO states. For intermediate appellate courts the average is that of the 36 states that have such courts. All averages and rankings are based on the lowest salary of the range or on salaries without supplements. Salary information on special and limited jurisdiction state courts is available by contacting: Jeanne A. Ito Director, Survey of Judicial Salaries National Center for State Courts 300 Newport Avenue Williamsburg, VA 23187-8798 804/253-2000 Alabama Alaska Arizona Arkansas California Colorado Connecticut DelawareFlorida Georgia Ha-11 Idaho Illinois Indiana I~ Kansas Kentucky Louisiana Maine Muyland Mauachusetts Michigan Minnesota Mlsalsalppl Mlsaourl Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vennont VIrginia Washington West VIrginia Wisconsin Wyoming Mean Allerage Median Range District of Columbia Federal System American Samoa Guam Puerto Rico VIrgin Island Tie rank lntennedlate General Highest Court Appellate Court Trial Court Date of Last Salary Change 63,800 (25) 81,648 (3) to 93.084 67.500 (19) 54,410 (41) 88,818 (2) 63,000 (27) 61,800 (28) 74,640 (9) 74,347 (10) 66,248 (21) 53,460 (43) 47.300 (50) 75,000 (8) 60,000 (31) (63,000) 60,900 (30) 59.143 (33) 57,797 (37) 66,566 (20) 51,096 (47) 68.200 (15) 71.600 (13) 77,700 (5) 68.400 58,000 72,500 48,923 58,726 61.500 54,896 78,000 57,500 92.500 65.856 53.900 68.000 (14) (36) (11) (49) (35) (29) (40) (4) (38) (1) (23) (42) (16)* 59.136 (34) 53.308 (44) 76.500 (6)* 59.607 (32) to 71,529 72.428 (12) 52.677 (46) 65.650 (24) 76.500 (6)* 53.000 (45) 49.000 (48) 67.540 (18) 66.000 (22) 55.000 (39) 68.000 (16)* 63,500 (26) 64,430 63,650 47,300 to 92,500 72.360 100.600 70.026 44.000 62,700 (23) 76,188 (3) 65,500 (14) 52.557 (33) 83.268 (2) 58.500 (26) 59,000 (25) 67.093 (11) 65,738 (13) 51,975 (35) 46,300 (36) 70,000 (7) 55,000 (31) (58,000) 57,800 (27) 57,032 (28) 55.438 (30) 63,367 (19) 65,400 (15) 66.250 (12) 74,592 (5) 63,100 (21) 67,500 (10) 75,000 54,600 87.500 62,352 64,000 55.440 52.039 74.500 (4) (32) (1) (24) (17)* (29) (34) (6) 68,807 (9) 63.125 (20) 68.850 (8) 64,163 (16) 63,000 (22) 64,000 (17)* 63,935 63,683 46,300 to 87,500 80.400 52,800 (33) (73,920) 73,620 (2) to 86,504 62,500 (12)* 50,703 (37) 72.763 (3) 54,000 (29)* 56,200 (21) 70,320 (4) 64,072 (8) 54,500 (26)* (73.552) 50,490 (39) 45,300 (49) 60,500 (16)* to 65,500 47,000 (47) to 50.000 54,000 (29)* 51,417 (35) 53,079 (32) 60,169 (18) 50,245 (40) 63,300 (10) 63.600 (9) 42,735 (50) (71.484) 60.500 (16)* 51 ,000 (36) 62,500 (12)* 47,693 (46) 54,322 (28) 56,000 (22) 53,460 (31) 70,000 (5) 51 ,765 (34) 82.000 (1) 55,368 (24) 50,600 (38) 55,500 (23) to 60,500 49,280 (42) 48.356 (44) 65.000 (7) 54.860 (25) to 65.832 68,807 (6) 49.140 (43) 60.600 (15) 54.500 (26)* 48.000 (45) 46,600 (48) 62.700 (11) 60.000 (19)* 50,000 (41) 60,000 (19)* 61.000 (14) 56,977 54,680 42.735 to 82,000 68,400 76.000 44.338 32.000 to 38,000 57,200 10-1-84 1-1 -8 3 1-1-85 7-1-84 7-1-84 7-1-84 7-1-84 2-1 -85 1-1-85 7-1-84 7-1-82 7-1-82 7-1-83 1-1-85 7-1-84 8-1-84 7-1-84 9-1-81 12-1-84 7-1-84 7-1-84 1-1-85 1-1-85 1-1-84 8-13-84 7-1-84 1-1-85 1-1-83 6-7-84 1-19-82 7-2-84 1-1-85 7-1-84 7-1-82 1-1-84 7-1 -82 1-1-83 12-1-83 7-8-84 6-17-84 7-1-84 7-1-83 9-1-84 7-1-84 7-1-84 7-1-84 7-1-84 7-1-84 8-1-84 1-1-82 1-8-84 1-1-84 7-15-81 10-1-83 10-1-83 10-1-82 55 Federal Government Salaries FEDERAL SALARIES The salary situation for the highest officials in our Federal government is confused in that there is a large gap between what is "authorized" (scheduled) and what is legally "payable." However, due to legal action taken by Members of the Federal Judiciary, culminating in a u. s. Supreme Court decision in December 1980, the gap for judges has been closed. Following is the background. In February 1977 substantial salary increases were put into effect for Federal officials in all three branches of government. {Continued on page 60) SALARIES OF MAJOR FEDERAL OFFICIALS, 1975 TO PRESENT "EXECUTIVE SCHEDULE" POSITIONS 1975 Chief Justice. ,$65,600 Executive Level I. 63,000 Associate Justice. 63,000 Executive Level II 44,600 Senators and Representatives 44,600 Comptroller General 44,600 Judges, Circuit Courts of Appeals. 44,600 Judges, Court of Claims 44,600 Judges, Court of International Trade 44,600 Executive Level III ~ 42,000 Judges, U. S. District Courts. 42,000 Judges, Bankruptcy Court District Attorney, Federal Executive Level IV 39,900 Executive Level V 37,800 1977 $79,125 69,630 75,960 60,663 60,663 60,663 60,663 60,663 60,663 55,388 57,498 52,750 50,113 1981 $92,400 69,630 88,700 60,663 60,663 60,663 70,900 70,900 70,900 55,388 67,100 52,750 50,113 1982 $96,800 69,630 93,000 60,663 60,663 60,663 74,300 74,300 74,300 59,500 70,300 58,500 57,500 1983 $100,000 80,000 96,700 69,800 69,800 69,800 77,300 77,300 77,300 68,400 73,100 67,200 63,800 1984 $100,700 83,300 96,700 72,600 72,600 72,600 77,300 67,800 73,100 71,100 73,100 66,100 66,400 69,900 66,400 1985 $104,700 86,200 100,600 75,100 75,100 75,100 80,400 90,200 76,000 73,600 76,000 68,400 70,500 72,300 68,700 Examples of Executive Level Positions Level I Level II -- Level III Level IV -- Level V --- Cabinet officers. Deputy Secretaries of major departments, Secretaries of military departments and heads of major agencies. Deputy Secretaries of minor departments, heads of middle level agencies. Assistant Secretaries and General Counsels of departments, heads of minor agencies, members of certain Boards and Commissions. Administrators, Commissioners, Directors, and Members of Boards, Commissions, or units of agencies. 57 EXECUTIVE, LEGISLATIVE AND JUDICIAL SALARIES Position Salary rate payable January 1, 19SS President of the United States $200,000 Vice President of the United States. 97,900 Members of Congress, including the Resident Commis- sioner from Puerto Rico and the Delegates from the District of Columbia, Guam, and the Virgin Islands 75,100 Speaker of the House of Representatives 97,900 President pro tempore of the Senate. 85,000 Majority and minority leaders of the Senate 85,000 Majority and minority leaders of the House of Repre- sentatives 85,000 Other offices in the legislative branch: Comptroller General of the United States 75,100 Deputy Comptroller General of the United States 73,600 General Counsel of the United States General Ac- counting Office 72,300 Librarian of Congress 72,300 Public Printer. 72,300 Architect of the Capitol. 73,600 Chief Justice of the United States 104,700 Associate Justices of the Supreme Court. 100,600 Judges, Circuit Court of Appeals 80,400 Judges, Court of Claims. 70,200 Judges, Court of International Trade 76,000 Judges, district courts. 76,000 Judges, Bankruptcy Court 68,400 Offices and positions under the Federal executive salary scheduled in subch. II of ch. 53 of title 5 of the United States Code: Level I 86,200 Level II. 75,100 Level III 73,600 Level IV. 72,300 Level V 68,700 58 SALARIES OF MAJOR FEDERAL OFFICIALS, 1975 TO PRESENT "EXECUTIVE SCHEDULE" POSITIONS 1975 1977 1981 1982 1983 1984 1985 Chief Justice $65,600 $79.125 $92,400 $96,800 $100,000 $100,700 $104,700 Executive Level I . 63,000 69,630 69,630 69,630 80,000 83,300 86,200 Associate Justice 63,000 75,960 88,700 93,000 96,700 96,700 100,600 Executive Level II 44,600 60,663 60,663 60,663 69,800 72,600 75,100 Senators and Representatives 44,600 60,663 60,663 60,663 69,800 72,600 75.100 Comptroller General 44,600 60,663 60,663 60,663 69,800 72,600 75.100 Judges, Circuit Courts of Appeals 44,600 60,663 70,900 74,300 U1 1..0 Judges, Court of Claims 44,600 60,663 70,900 74,300 77,300 77,300 77,300 67,800 80,400 90,200 Judges, Court of International Trade . 44,600 60,663 70,900 74,300 77,300 73,100 76,000 Executive Level III 42,000 55,388 55,388 59,500 68,400 71,100 73,600 Judges, U. S. District Courts 42,000 57,498 67,100 70,300 73' 100 73,100 76,000 Judges, Bankruptcy Court 66,100 68,400 District Attorney, Federal 66,400 70,500 Executive Level IV 39,900 52,750 52,750 58,500 67,200 69,900 72,300 Executive Level V 37,800 50.113 50,113 57,500 63,800 66,400 68,700 Under existing Federal law, annual increases (akin to cost-ofadjustments, but not actually such) are authorized. However series of appropriations bills in late 1977 and to the present Congress has effectually denied such increases from taking p Instead, it has provided for much smaller boosts in pay. The latest chapter in this story is as follows. In August, 1984 officials responsible under the Federal Pay Comparability Act of reported to the President that it would require an increase of to bring salaries of those whose compensation is set by statute level equivalent with private industry. Instead, the President ornmended a 3.5% increase, and this increase did become a reali However, as stated above, Federal judges were successful in legal action to bring the "payable" up to the "authorized". held that denying them their increases was unconstitutional, ing to a reduction of pay while in office. It seems that for brief period, a couple of years ago, the authorized schedule effect, and it was nullified by a subsequent appropriations bi However, beyond that specific action, it seems agreed now that judges must give the full authorized salary schedule presently in the future. The General Schedule (Civil Service) Effective January 1, 1984 a pay increase of 4% went into effect all Federal employees covered under the General Schedule. On J 1, 1985 a 3 1/2% boost was provided. Salary Outlook (as of Summer, 1985) With all the emphasis on reducing the Federal deficite by c expenditures, it seems unlikely now that there will be any s increases this year for those under the General Schedule or under the Executive Schedule. 60 SCHEDULE 1--THE GENERAL SCHEDULE To be effective the first pay period in January 1985 Grade 1 2 3 4 5 6 7 8 9 10 1 9339 9650 9961 10271 10582 10764 11071 11380 11393 11686 2 10501 10750 11097 11393 11521 11860 12199 12538 12877 13216 3 11458 11840 12222 12604 12986 13368 13750 14132 . 14514 14896 4 12862 13291 13720 14149 14578 15007 15436 15865 16294 16723 5 14390 14870 15350 15830 16310 16790 17270 17750 18230 18710 ()) ....... 6 16040 16575 17110 17645 18180 18715 19250 19785 20320 20855 7 17824 18418 19012 19606 20200 20794 21388 21982 22576 23170 8 19740 20398 21056 21714 22372 23030 23688 24346 25004 25662 9 21804 22531 23258 23985 24712 25439 26166 26893 27620 28347 10 24011 24811 25611 26411 27211 28011 28811 29611 30411 31211 11 26381 27260 28139 29018 29897 30776 31655 32534 33413 34292 12 31619 32673 33727 34781 35835 36889 37943 38997 40051 41105 13 37599 38852 40105 41358 42611 43684 45117 46370 47623 48876 14 44430 45911 47392 48873 50354 51835 53316 54797 56278 57759 15 52262 54004 55746 57488 59230 60972 62714 64456 66198 67940 16 61296 63339 65382 67425 69468* 71511* 73554* 75597* 77640* 17 71804* 74197* 76590* 78983* 81376* 18 84157* * The rate of basic pay payable to employees at these rates is limited to the rate payable for level V of the Executive Schedule, which would be $68,700. Salaries in Business: Top Executive SALARIES 'FOR THE 11SENIOR LEVEL11 MANAGEMENT GROUP en we speak of compensation levels for managerial and lfbofessional personnel in the private sector, it is important to prte at the outset that the picture is complex. Fi~~t, there are n~o)rebe odn ui sst, inct and strands in compensation, namely: (l) salary, (3) long-term income (chiefly, various types of tack-option plans) . Thus, it is necessary to know which are tscluded when we speak of managerial compensation. Next, note different valid ways to measure increa~e~: (1) 11 ~vrage salary level"--reflects the amount to a pos~t~on and ~n ~ludes new people; and (2) "average salary increase"-- includes onlY "old" people and reflects "merit" increases. Increases under (2} will always be greater than under (1). In this book ~e boosts shown (pg. ) are of the (1) type. J Thirdly, executive salaries differ widely for people with the same title and general responsibilities depending on the size of enterprise. Yet all are truly top level executives. rourthly, salaries vary by type of industry. For example, salaries are lower for top management in the public utilities than is true in manufacturing. Also, salaries for business managers vary somewhat by the region of the nation in which they are located. In the Southeast they are about 7 percent below the national average. Finally, salaries for managers vary according to the function performed by the individual and the level of authority at which he functions. Yet all clearly fall in the "managerial" category. ~ the following pages, all of these factors will be treated, and their significance will be made clear in a factual manner. All information and quoted sentences are drawn from the most recent survey of executive compensation performed by Sibson and Company.* SUMMARY FOR LATEST FULL YEAR (1984) ~Salaries for executives rebounded sharply in 1984. For those at e very top, the chairman and the president, the increase in cornoenaation (salary and bonus) averaged 17 percent! For the management CJroup as_~ whole, referred to as "the senior executive group", the ----------------------------------------------85;~ ib son &Company Inc., EXECUTIVE COMPENSATION: 20th Edition, (Factual data from 1984) 62 increase was somewhat less, namely 12.6 percent. These were r ably large boosts! With inflation running at such a low level ( 4. percent) , for business executives 1984 was likely the best Yea record for real increases. Those closest to the salary picture r that there is a large demand for qualified top executives to uc ~n large business organizations, and this is said to explain the tinued large increases men at these high levels have been in recent years. Until 1981 salaries for senior executives inc almost at the same pace as the Consumer Price Index. Since that hm-1ever, salaries have been rising much more rapidly than prices. (See figure below) . Executive Salary Increases Vs. Consumer Price Index 380% 340% 300% 260% 220% - - CPI 180% 140% 100% 1967 '70 '75 '80 The indexes measure changes from a designated reference date-1967-which equals 100.0. SOURCE: 1984 Sibson & Company Survey Bureau of Labor Statistics '83 '85 Of course, the risinq profitability of American business in made it easier to reward the top management group liberally. group ..,.,as said to be responsible for the improved financial cona;..,. of their respective organizations and, therefore, they deserved rewarded. Outlook It is believed that compensation for the executive group increased, on the average, in 1985 about the same as it was namely 12 percent. 63 MORE FACTS: Historial Perspective Here we see the record of increases since 1980 for the "senior executive groups" in American business. (The difference between "total compensation" and "base salary" is the inclusion of bonus in the forner.) These increases far exceed those awarded state officials in Georgia---or in other states. Comparison of Annual Percent Changes in Compensation BASE SAlARY AND TOTAL CASH COMPENSATION Due Salary Total Compensation 14~--------------------------------------------------------------------- 12I~ .-- - - 10%_ ~ ,.-M N ..--~ - -= 8%_ r-- 6 %_ r~ ..: ,.-- ~ QQ .-- r~ ..: - - - = ,...- .-- OC1 1- N M 1-"'M" N ~ r- ,.-- .-- - - ~ 1- N ~ ~ N 1- ~ 1- 1- 1- .-- 1- ~ 4 %_ 1- 1- ~ ~ '-- ll'5 F- ~ 2 %_ - - r- 1- 0 1980 '81 '82 '83 '84 '85 Projected 1980 '81 '82 '83 '84 '85 Projected "Compensation Change: The percentage by which average pay levels for a give n group exceed the average pay leve;s for the same positions in previous years. SOURCE: 1984 Sibson & Company Survey The above graph does not include the income from the exercise of stock options. Over the years the extra income from such options is typically larqe. n4 Year 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 TRENDS IN MANAGEMENT SALARY CHANGES Increase in position averaqe salary level Average salary for all 4% 4 5 5 6 5 5 5 6 9 8 8 8 10 11 12 11 7 8.4 7.5* (est.) 6% 7 7 7 9 7 7 7 8 10 9 9 9 10 12 13 11 8 9.1 8.1 (est.) SOURCE: Sibson & Company Surveys *This figure is for salary alone. When combined with a bonus the increase will likely amount to ~2%. **These numbers run higher because only "old" (experienced in job) managers are included, and the salary includes merit increases. 65 SOME' 'FACTS ON THE WIDE VARIATION IN MANAGEMENT SALARIES salaries for positions carryinq the same title vary widely in American business, dependinq chiefly on the size of the enterprise. One finds that in the larqest firms (sales in the billions) salaries are four or five times as large as they are in small ones. (By "small" we mean a business with annual sales of $25 million.) Competitive Salary and Total Annual Compensation Levels ChiefExecutive.. om-cer SALES IN $MILLIONS Salary Total 25 $128 $160 50 153 194 General Industry C:ompeusatioa in $ Thousands* Chief Oopemraatinr g. Chief flnancfal Executive . Top. Legal Executive- Salary Total Salary Total. Salary Total $ 99 $119 $ 70 $ 82 $ 50 $ 54 117 144 81 96 59 65 100 184 236 139 174 94 113 69 78 250 233 .J06 174 224 113 140 85 100 500 279 372 206 271 131 165 100 120 750 310. 417 227 303 143 181 110 134 1,000 1 '500 333 452 370 507 244 328 269 366 151 193 165 213 117 145 129 162 3,000 10,000 443 617 605 867 319 443 429 615 191 250 245 330 151 195 200 269 Top. Huuian. Resolli"Ce$. Executiv~ Salary Total $ 47 $ 52 54 62 63 73 77 91 89 108 98 120 104 128 114 142 132 168 172 225 "General industry" includes durable and nondurable goods manufacturing companies. Compensation varies somewhat accordinq to the type of business. Salaries are lower in retail sales, service enterprises and in utilities, yet the differentials are not really large. 66 WHAT THIS MEANS TO THE STATE COMMISSION ON COMPENSATION: This Commission is required by law to consider the salaries prevailing in industry and commerce as a preliminary to the recommending of compensation for Georgia officials. It is apparent that salary levels in business far exceed those available to our state officials. Heads of our large agencies in Georgia, whose salaries are set by statute, now get paid in the $58,000 to $60,000 range. In contrast, in a business with sales of $200 million annually (which is not a large firm) the top man will be paid about $220,000 and the sales manager $100,000 per annum. The chief legal advisor will be paid about $80,000. (In large firms the salary would be $100,000). In contrast, in our state government, the Attorney General gets $62,000. His responsibility is very large, and he heads a biq staff of professionals. In the discussion above, we are not considering the giant firms like General Motors, IBM, General Electric, Coca -Cola, and AT&T. Salaries run even higher in the top echelons of those enterprises. Heads of the very large corporations get about $400,000 to $1,000,000 in salary annually plus bonus1 in addition, they receive occasional large income from stock options. In contrast, our Governor gets $79,359 salary plus a mansion and a $40,000 mansion allowance. He gets other minor perquisites of the office . When it is all put together, his compensation falls far short of that ~revailing for those who head large business organizations in America today. 67 GROUP MANAGERS Below the chief exeeutives of a large enterpise are the "group executives." Their compensation varies widely depending on the scale of operations and degree of independent autonomy. To qualify in the category of "group executive" a manager must have two or more "divisions" reporting to him. Compensation Levels for Group Executives (Compensation in $1bouaands) SALES {! Mllliooa} 12.5 25 25m PERCENT1LE Sue Total $69 $83 77 96 501lf PERCEN'Tll Rue Total -$85 $105 97 121 50 88 Ill Ill 140 75 95 121 120 153 100 100 128 127 162 250 120 156 151 197 500 137 180 173 228 750 1,000 3,000 148 196 157 208 194 262 188 248 198 263 246 331 5,000 10,000 214 292 245 337 271 369 310 426 751ll PERONJllE Sue !!!!! $100 $128 117 147 134 170 145 185 153 196 183 238 . .210 .. 275 227 300 240 318 297 401 328 446 375 516 68 DIVISION MANAGERS Beneath the group managers are the "division managers." The compensation varies greatly depending on sales volume and deir of independent decision making autonomy. rr Compensation Levels for Type A (More Autonomous) Division Managers (Compensation in S Thousands) SA.U'.S (S Mllllona) 251lf PERCE."mU: Rue Total 5011i PERCEN11LE Rue Total 12.5 S60 S68 $73 $88 25 70 80 84 103 50 81 94 98 121 75 88 104 106 133 100 93 Ill 113 142 250 113 137 137 176 500 131 161 158 207 750 142 117 172 228 1,000 3,000 151 189 190 245 183 244 231 315 5,000 10,000 212 216 245 324 257 355 297 417 s 86 s 107 99 126 115 148 125 163 133 174 161 216 186 254 203 279 215 298 271 385 302 434 349 510 Compensation Levels for Type 8 (Less Autonomous) Division Managers (Compensation inS Thousands) SA.U'.S ($MW1ona) 251lf PERCE.'"Ill Balle TotaJ sarn PERCEJimLE Rue Total s 12.5 S58 $65 $ 71 s 81 25 65 74 79 92 50 73 84 89 105 75 79 90 95 113 100 82 95 100 119 250 96 113 117 142 500 108 128 131 161 750 115 139 140 174 1,000 121 146 147 183 3,000 145 179 176 225 5,000 158 197 192 247 10,000 178 224 215 281 751lf PERCENTIU: Sa..! Total $ 83 $ 98 93 Ill 105 126 112 136 118 144 137 170 154 194 164 209 173 220 201 270 226 297_ 253 338 69 -tong-Term Income In addition to salary and bonus it is a very widespread practice to provide various forms of long-term income for the top management group; chiefly, the vehicle is some form of stock-option plan. Depending on the health of the parent company and the swings in the stock market, this income is received irregularly. Yet, over a long period of time it is very important indeed. sibson & Company estimates that the average annual income gain from these plans runs from 30 percent (in small fir.ms) to 60 percent (in the largest) of the salaries for top executives. Executive Benefits and Perquisites Typically these benefits -- retirement allowances, insurance, medical services, paid club dues, first class air travel, tax counselling, estate and investment planz4ing and a company car represent 25 to 30 percent of an executive's salary. They are not included in the salary figures reported above. 70 COMPENSATION FOR TOP MANAGEMENT OF VERY LARGE CORPORATIONS Highlights of BUSINESS WEEK'S "Annual Survey of Executive Compensation for 1985" 1. Managers' salaries and annual bonuses went up 12.7% in 1984, on the average. 2. As in previous years, the highest paid Executives derived the majority of their income from the exercise of stock options. (However, four in the group of the 25 highest paid in 1984 qualified on their salaries/ bonuses alone.) 3. Of 259 of the largest companies we find: A. The average salary/bonus for top managers in 1984 was $653,000. B. Average total compensation--including the exercise of stock options--was $1.1 million (up 22% from last year). In contrast to the large increases for top Executives last year in these very large firms, consider the following: 1. The cost-of-living index went up only 4%. 2. Wages of white-collar workers went up 6.5%. (This survey, published in May 1985, is for 1984.) 71 THB 25 HIGHIUn'-PAID BXIICUTIVSB ANNUAL TOTAL COMPENSATION LONG-TERM COMPENSATION Thousands-of Dollars TOTAL COMPENSATION 1. T. Boone Pickens, Jr., chmn. ' pres. Mesa Petroleum $4,223 $18,600 $Jl,8ll 2. David A. Jones, chmn. Human a 722 17,394 18. 116 l. Bdson D. deCastro, chmn. ' pres . Data General 436 7,529 7,'11>'> 4. Herbert J. Richaan, exec. v-p Data General 336 6,962 7,298 S. Lee A. Iacocca, chmn. Chrysler 1,195 4 ,ll 5 '>,'>10 6. Sidney J. Sheinberg, pres. MCA 500 4. l 38 4 ,61H 1. An Wang, chmn . Wang Labs 606 3,814 4, 4 /II 8. Phillip Caldwell, chmn. Ford Motor 1, 575 2, 485 ,Ill> II 9. Thoaas D. O'Malley, vice-chmn. Phibro-Salomon 2,514 I, 395 J,'J09 10. John R. Opel, chmn. IBM 1,034 2,807 3, 841 11. Anthony R. Hailton, chmn. Avnet 1,049 2,173 ) ,822 12. Gerald Greenwald, vice-chmn. Chrysler ""-1 N ll. Prank D. Tranadel Jr . , senior v - p Comdisco 817 1,602 2,419 1,561 ), 296 3' 16) 14. Paul J. Riaao, vice-chmn. IBM 767 2,120 2,887 lS. Harold K. Sperlich, pres. Chrysler 828 2,040 2,868 16. Barry Diller, senior exec. v-p Gulf ' Western 2,866 0 2,866 17. Kenneth N. Pontikes, chmn. ' pres. Comdisco 1,239 1,591 2,8)2 18 . Oliver C. Boileau, pres. General Dynamics 643 2,127 2,170 19. John G. Breen, chmn . ' pres. Sherwin-Williams 172 1. 849 2,621 20. Clifton c. Garvin, Jr . chmn. 21. Howard H. Kehri, vice-chmn . 22. Harrington Drake, chmn. 23. Donald B. Petersen, pres. 24. John H. Gutfreund, chmn. 2S. John P. Burlinga.a, vice-chmn. Exxon General Motors Dun ' Bradstreet Ford Motor Phibro-Salomon General Blectric 1,350 1,269 975 1,229 2,379 932 1,236 1,253 1,459 1,184 0 1,408 2,586 2,522 2, o4 2, 413 2,379 2,340 SAMPLE COMPENSATION FOR TOP EXECUTIVES Long Term Total Salary Income* and Bonus 1984 1984 1983 --rfn thousands of dorr-- COMPANY Lockheed Corp.Aerospace Chairman President 787 698 24 603 541 Delta Air Lines- Airlines Chairman & CEO 391 President & COO 199 United Airlines- Airlines Chairman, President & CEO 425 Hoover Company- Appliances Chairman, President & CEO Executive Vice President 14 424 429 323 328 Zenith Radio Corp.- Appliances Chairman, President 6 Chairman 461 350 320 333 Ford Motor Co.Automotive Chairman & CEO President & COO 2485 1184 1575 1229 1400 1140 General Motors Corp.Automotive Chairman & CEO President & COO 1592 1373 1490 1330 Security Pacific Corp.- Banking Chairman & CEO 613 President & COO 266 896 787 636 530 *"Long-term income" refers to income from such things as cise of stock options. In fact, this income tends to infrequently for any given executive, and it hinges g level of the stock market. 73 Long Term Total Salary Income* and Bonus 1984 1984 1983 1982 --rin thousands of dollars) COMPANY Coca-Cola Co.Beverages Chairman & CEO President & COO 462 1275 1158 1045 352 965 808 718 G. Heileman Brewing Co.Beverages Chairman, President & CEO Executive Vice President 506 587 537 227 243 223 U.S. GypsonBuilding Materials Chairman & CEO President & COO 802 575 514 374 American Cyanamid Co.Chemicals Chairman, President & CEO 24 Vice Chairman 788 633 475 470 628 431 Fuqua Industries, Inc.- Conglomerates Chairman President 62 1500 487 1500 429 1113 363 Anchor Hocking Corp.- Containers President & CEO 373 Sr. Vice President 124 329 413 247 184 Baxter Travenol Lab.Drugs President & CEO Exec. V. President & COO 121 465 645 579 330 National Semiconductor Corp.- Electronics President Vice President 739 397 219 192 262 195 158 Holiday Inns, Inc.Food and Lodging Chairman & CEO President & COO 80 342 521 347 293 250 561 362 Marriott Corp.Food and Lodging President & CEO Executive Vice President 1275 723 637 519 468 425 360 74 I l I Long Term Income* 1984 COMPANY Dart & Kraft-Food Processing Chairman & CEO 120 President and COO Caterpillar Tractor Co.General Machinery Chairman President Bausch and Lomb, Inc.- Instruments Chairman, President, CEO 541 Senior Vice President 8 Reynolds Metals Co.Metals Chairman & CEO Vice Chairman Armstrong World Ind., Inc.- Miscellaneous Manufacturing President, Chairman, CEO 8 Executive Vice President 98 Black and Decker Mfg. Co.- Miscellaneous Mfg. President & CEO 225 Executive Vice President Standard Oil of Indiana- Petroleum Chairman & CEO 207 Vice Chairman 212 CNA Fin. Corp. -Nonbank Financial Chairman, President, CEO Vice President Burroughs Corp.- Office Equip., computers Chairman & CEO 42 President and COO 180 Digital Equip. Corp.- Computers President Vice President 750 890 --- 700 647 590 467 404 533 325 544 390 243 350 362 292 266 220 595 326 321 383 748 559 559 534 280 255 950 687 700 609 655 309 75 COMPANY Long Term Total Salary Income* and Bonus 1984 1984 1983 1982 --rfn thousands of dollars) Dresser Industries, Inc.- Oil Service and Supply Chairman President 15 WeyerhaeuserPaper and Forest Products Chairman & CEO Executive Vice President 253 253 403 251 251 365 672 420 Georgia Pacific Corp.Paper and Forest Products Chairman, President, CEO 189 Executive Vice President 659 446 350 453 Avon-Personal Care Products Chairman, President & CEO 797 Executive Vice President 465 Proctor and Gamble- Personal Care Products Chairman 96 President and CEO 37 858 650 627 685 750 702 CSX Corporation-Railroads Chairman and CEO President 327 Kroger Company-Retailing Food Chairman & CEO 347 President 151 Inland Steel-Steel Chairman and CEO Executive Vice President 973 485 440 759 385 333 563 522 596 429 382 390 423 257 Levi Straus-Apparel President and CEO 360 Chairman 258 Uniroyal, Inc.-Tire and Rubber President and CEO Vice President 470 430 388 244 217 207 Philip Morris, Inc.-Tobacco Chairman and CEO 364 Chairman, Executive Comm. 875 1115 991 880 759 720 76 Long Term Total Salary Income* and Bonus 1984 1984 1983 ~n thousands of dollars) COMPANY Consolidated Freightways- Trucking Chairman, President, CEO 390 636 Executive Vice President 80 350 Consolidated Gas Sys., Inc.Utilities Chairman and CEO Executive Vice President 325 533 220 260 Bell South-Utilities Chairman and CEO Vice Chairman 10 538 15 328 f 77 Salaries in Business (continued): Administrative Managers SALARIES OF ADMINISTRATIVE MANAGEMENT PERSONNEL IN 1934* salaries for this group of managers varies considerably, according to level of authority and scale of operations, but the variation is not as large as is that for the higher levels. Salaries run $50,000 to $150,000, generally speaking, with an additional 15 to 20 percent for bonus. Salary Levels for Selected Division Positions -General Industry- (Bonus-Paying Company Salaries iD Slbousanda) POSmON Chief Executive Officer ATS200MM SALES $131 ATS400MM SALES $151 Sales & Marketing 85 95 Manufacturing 80 89 Legal 74 84 Sales 77 87 Engineering/Technical 72 80 Marketing 75 84 Controller Human Resources 66 73 62 ,-?... MIS/EDP 59 66 Purchasing 51 58 Labor Relations 50 58 AVFRAGE $ 73 $ 83 PfRQNT DIFFERENCE 16% 12 II 14 13 12 12 -10 16 12 14 16 13% *From EXECUTIVE COMPENSATION, 20th Edition, 1985 prepared by Sibson and Company, Inc., Pages 27,29. 78 -cecutive Salaries Relationship Between Salary Levels of Top Division Executives and Selected Division Positions POSmON Chief Executive Officer SAlARY AS A PERCE.l\ff OF DIVISION CEO SAL\Ry S50-500MM Sales Volume S500MM-S5B Sales Volume $58-508 Sales Volume Average 100% 100% 100% 100% Sales & Marketing 64 57 51 57 Manufacturing 60 55 49 55 Legal 56 53 51 53 Sales 59 56 53 56 ',, Engineering/Technical 54 48 42 48 Marketing 56 50 44 50 Human Resources 47 47 46 47 Controller 50 43 36 43 MIS/ EDP 44 40 36 40 Purchasing 39 35 31 35 Labor Relations 39 37 36 37 ~oL; RCE: 1984 Sibson & Co mpany Survey 79 Salaries in Business (continued): Professional, TechnicaL and Middle Management DATA FROM THE NATIONAL SURVEY OF PROFESSIONAL, ADMINISTRATIVE, TECHNICAL, AND CLERICAL PAY (ANNUAL) o. s. Department of Labor, Bureau of Labor Statistics In private industry the trend of salaries in recent years for "professional, administrative and technical support" personnel has been: Percentage increases 1967-1968 5. 5 1968-1969 5.8 196 9-197 0 6 2 1970-1971 6. 7 1971-1972 5. 5 1972-1973 5. 4 1973-1974 6. 3 1974-1975 8. 3 1975-1976 6. 7 1976-1977 7.1 1977-1978 8. 3 1978-1979 7. 7 1979-1980 9. 3 1980-1981 10.0 1981-1982 9. 3 1982-1983 7.1 1983-1984 ~.a 1984-1985 4.6 The most recent survey revealed the following average salaries of employees in selected occupations in private establishments as of March, 1985. Accountants I II III IV v VI Auditors I II III IV Chief Accountants I II III IV Attorneys I II III IV v VI 20,577 25,349 30,037 37,609 46,879 59,519 21,128 25,854 31,246 39,249 37,557 46,517 60,466 74,735 29,886 37,256 47,742 59,087 73,805 91,609 80 WHITE-COLLAR SALARIES, MARCH 1985 Professional, administrative and technical suooort occupations Average salaries for selected occupations in the professional, administrative and technical support groups increased 4.6 percent during the year ending March 1985, according to preliminary data from the latest nation-wide salary survey conducted by the U. s. Bureau of Labor Statistics. This is less than the increase for last year. For two groups which are of particular interest to this Cqmmission, chief accountants and attorneys, increases averaged around 6.1 per cent. For det&il .'.,; on the increas,.;s for specific groups, see the information bel ow. OCCUPATION 1970 to 1980 Annual Average 1981 1982 1983 to to to 1982 1983 1984 1984 to 1985 Professional, administrative and technical support: Percent Increase Accountants e e e G e e e e e e e e e e e e e e e . ....... . ..... Chief accountants ....................... Auditors 7.3 7.9 6.6 9.6 11.4 9.4 6.9 4.2 6.1 4.7 5.7 8. 0 4.8 6.2 3.8 . . . . . . . . . . . . . . . . . . . . Public accountants Ill Job analysts 7.0 h. 6 9.2 7.1 6.7 2.3 5.3 4.3 5.8 Directors Attorneys o..f .p..e.rs.o.n..n.e.l ............ ........ 7.8 7.0 9. 6 11.4 8.3 7.6 5.3 4.8 6.5 5.9 Buyers ......................... 7.0 9. 4 6.2 5.3 3.8 Chemists ........................ 7.2 10 .4 5.8 5.3 5.6 Engineers ............. . . E n g i n e e r i n g Drafters .t.e.c.h. n. .i c. i.a.n. s. . . .................. ...... CPPrhoomogtproaugmtremarpsehroseprs.e.r..a..to....rs........................................ 7.0 7.2 7.3 10 .2 9 .4 8. 4 8.9 9 . 7 7.1 5.9 7.6 6. 8 8 .1 6.5 5.2 4.9 3.6 6.9 4.9 3.7 3.7 4.2 2.3 4.5 Clerical: M FAKeiceylcseoseeuCnnntgltreieynrrkgs os c.pl..ee..rr..ak..tso.. ..r s.............................. .... .... .... .... .... .... 6.7 6.9 7.3 6.7 8.9 7.2 9.4 6.4 TPSSetyeercpnsrioosengttsnar aerpi.l eh.cs.el.res..r..k...s.../...a... ...s...s...i s...t...a...n... ...t s... ............ .... .... 8.4 7.1 10.2 9.7- 13.8 10.1 8.1 6.4 7.3 9.2 9.7 7.1 8. 6 6. 8 3.8 2.1 3.4 2.9 5.4 5.0 5.5 2.0 4.8 3.7 3.6 4.1 2.7 4.7 4.9 s.9 81 Ill Salaries of I, Professionals in Private Ill Practice II I :I II I THE EARNINGS OF ATTORNEYS Leading Findings from the 1985 Survey by Management Consulting Firm, Altman & Weil, Inc., (Ardmore, Pennsylvania). Altman & Weil found that their survey results were more meaningful if separated into two main categories: (1) average lawyer income in law firms, and (2) corporate law department salaries. Also, they found wide variation in the compensation of attorneys, according to position held and by years of experience in the legal profession. LAW FIRMS The median total compensation (cash plus benefits) of attorneys in law firms: BY REGION West California West Central Southwest South Northeast East Central Partners/ Shareholders 98,286 115,180 105,475 123,122 105,633 107,563 110,609 Associates* 43,187 44,160 39,700 47,343 40,000 44,537 43,490 Compensation showed an inclination to vary by the size of the firm No. of Lawyers 2 to 6 9 to 20 21 to 40 41 to 74 75 or over Partners/ Shareholders 79,600 100,480 107,812 114,989 139,768 Associates* 34,227 39,130 41,017 44,141 47,385 ... and by the population of the metro area in which the firm was located. METRO POPULATION Under 100,000 100,000 to 250,000 250,000 to 500,000 500,000 to 1,000,000 over 1,000,000 Partners/ Shareholders 86,793 99,898 112,024 107,657 120,554 Associates* 35,923 36,692 40,803 43,309 46,361 *About 40 percent of attorneys in law firms are "associates". 82 (1) Year Admitted to Practice of Law Even among full partners in a law firm, earnings vary widely, especially by years of experience (and, no doubt, by individual ability and effort). Altman and Weil's Survey finds, year after year, that total compe ~ sation of partners tends to rise, on the average, with experience up to 30 years, then a decline sets in. However, remember we speak of average results for a host of individuals. There is wide variation in each age group. (Note the details i n the table below.) You will find many full partners in law firms with compensation of around $60,000--which is considerably below the top echelon. TOTAL COMPENSATION - BY YEAR ADMITTED PARTNERS/SHAREHOLDERS YEAR ADMITTED BEFORE 1935 1935 - 1939 1940 - 1944 1945 - 1949 1950 - 1954 1955 - 1959 1960 - 1964 1965 - 1969 1970 - 1974 1975 1976 1977 1978 1979 1980 1981 NO. OF LAWYERS 47 48 57 149 258 319 459 740 968 244 206 190 145 61 23 6 MEDIAN 60,000 105,724 116,709 130,000 147,822 143,252 136,145 130,975 102,804 90,900 77,878 68,229 61,714 51,402 53,399 42,750 ( 2 ) Many Attorneys in Law Firms Are Not Partners It is also important to keep in mind that a very large proportion of the lawyers serving in law firms are not partners, but rather associates, and their earnings are a level far below that for partners . Taking all law firms as a whole surveyed by Altman and Weil, we find that the number of associates is 80 percent of the number of partners; that is, they are also most as numerous as partners, especially in large firms. Earnings of associates vary somewhat by years of experience, but not as dramatically as that for partners However, the chief point to note from the detailed figures on the next page is that the median compensation of associates runs at a modest level--around $41,000. 83 TOTAL COMPENSATION - BY YEAR ADMITTED ASSOCIATES YEAR ADMITTED 1955 - 1959 1960 - 1964 1965 - 1969 1970 - 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 NO. OF LAWYERS 5 10 15 72 43 80 112 203 274 35 .9 397 388 418 62 MEDIAN 71,502 63,041 53,820 54,590 52,26G 50,564 53,383 50,835 49,101 45,710 41,071 38,771 35, 7 40 34,071 We conclude this section with a warning that one must not think of the compensation of attorneys in law firms in terms of the most experienced partners. One might say that they are the "cream" at the top. A large proportion of the lawyers in such firms get less than half that of the top level. Also, see findings of Bureau of Labor Statistics on earnings of attorneys shown on page 8 0. (These earnings are not quite as high as those found by Altman & Weil, perhaps, this is because of a somewhat different "universe" surveyed.) 84 CORPORATE LAW DEPARTMENTS* When we inquire into the salary levels for lawyers who work in corporate law departments (banks, insurance companies, manufacturing concerns, etc.) one finds a wide variation in their earnings. Mainly, this diversity is explained by the level of authority and responsibility and the degree of experience enjoyed by each attorney. Also, salaries generally vary according to the size of the corporate law department being surveyed. Median Compensation of Chief Legal and Deputy Chief Officer by size of Law Department, 1984 Size of DeEartment Chief Legal Deputy 2-10 lawyers 11-25 26 or more $117,800 179,500 145,000 $100,211 109,000 118,107 (1) attorneys non-supervisory Managing Attorney $72,010 83,000 81,793 (1) Attorne:t $49,740 52,800 50,394 Salaries by Level of Responsibility The data immediately following gives a concise picture of the situation. The compensation figures shown include salary and cash bonus. Whereas the average compensation shown seems to be a bit lower than that for law firms, keep in mind that the difference is partly due to omissions; left out are pensions, fringe benefits and deferred compensation. These omissions can be significant indeed! POSITION Chief legal Deputy Chief Managing attorney Attorney Para-legal New graduate Legal administrator MEDIAN 1984 COMPENSATION $130,000 109,280 86,000 53,000 21,903 30,000 35,529 As stated above, we find that incomes vary widely by position held within the legal departments. For the purposes of the State Commission on Compensation the relevant positions are surely the highest one or two since the caliber of men wanted for the bench should be such that they would qualify in the top ca in t egories Georgia . a One re p wi aid ll find $30,000 t hat to the $40,0 members 00 unde r of the that State receive Ju d dic by ilaaiWY1~5 in the highest levels of authority in corporate law departments. Actually the differential is greater than that because the above _ figures pertain to 1984, and we have reason to believe that compen sation levels for attorneys have risen about six percent in the past year. 85 How much does compensation vary with years of experience? The pattern is significantly different from that for law firms. Earnings do rise with experience for about 13 years, after which the earnings' curve is virtually flat (See table below). Remember, too, some very significant elements of compensation for the top echelons -- stock options, pensions, and numerous other corporate fringe benefits -- are not included. *Information from Altman & Weil, The 1985 Survey of Corporate Law Department Salaries. Data as of October, 1984. TOTAL COMPENSATION, "ATTORNEY", BY YEAR FIRST ADMITTED $90 U)