Before marching into the boss' office to demand a raise based on national salary trends, risk managers need to consider the type of industry in which they work, as well as the size of their particular firms, according to the annual “Risk Management Compensation Survey,” conducted by Logic Associates in New York and co-sponsored by The National Underwriter.

Salary and bonus standards vary among particular fields, locations, and company revenue categories. For example, this year's survey found that the average salary for risk managers at firms doing less than $200 million in revenue was $88,875. However, those working at chemical companies of that size reported a $112,500 annual salary, while those in the food industry came in under the national benchmark at $83,648.

At the other end of the spectrum, risk managers at firms with more than $15 billion in revenue reported an average salary of $248,582. However, those working at communication companies of that size fared much better, averaging $284,165, while those in the construction industry reported a significantly lower average salary of $188,225. Similar discrepancies occurred among bonus levels as well.

Salaries and bonuses rise in proportion to companies' sales volumes. At firms with sales from $201 to $500 million, risk managers earn, on average, $101,747, with bonuses of $4,314. In the next survey category, sales of $501 million to $1 billion, risk managers can expect salaries of $114,059 and bonuses of $6,118. Those working in companies with $1 to $2 billion in sales averaged $133,469, with bonuses of $9,972.

Companies with sales of $2 to $4 billion paid their risk managers an average salary of $153,675, with bonuses of $14, 725. In the $4 to $7 billion sales range, risk managers earned $412,222, with bonuses of $19,839, while in the $7 to $15 billion range, they could expect $214,222, and bonuses of $27,804.

Sam Friedman is editor of our sister publication, National Underwriter P & C.

Special Reports /

Risk Manager Salaries Diverge Considerably

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