Political Action Committee Executive Compensation and Benefits Study Published by National Association of Business Political Action Committee June 2012 Public Opinion Strategies conducted an online survey of 148 political action committee (PAC) and political affairs executives, March 12-23, 2012 on behalf of the National Association of Business Political Action Committees (NABPAC). Gene Ulm and Robert Blizzard of Public Opinion Strategies were the pollsters and primary researchers on the project. The survey respondents were generally female, nearly 70 percent fell between the ages of 25-44 and most have been with their respective PAC between four and 12 years. Further, they are highly educated with graduate and post-graduate degrees, and fully 40 percent said they are registered lobbyists. Looking at past experience, a plurality has worked on political campaigns or has previous legislative experience. The majority of survey respondents have the title “Director” or “Manager.” Due to the small size of most PACs, 55 percent of respondents supervise fewer than three employees. The overwhelming majority indicate they report to a Vice President or Senior Vice President. Interestingly, working with their organization's PAC is not their only job. In fact, participants in the survey indicate they have several responsibilities including issue advocacy, lobbying, grassroots and administrative functions. While most of their time is spent on PAC-related activities, respondents want more of their time spent on lobbying and other government affairs functions. The survey found that the average salary for this sample group is approximately $121,000, with 60 percent receiving some form of performance compensation. Looking closer, as one gets older, has more experience, or becomes a lobbyist, annual income levels rise, nearly doubling entry-level salaries. Nearly all participants indicate their employer provides medical benefits and fully 70 percent say their employer pays all or most of their health insurance premiums. PAC executives state they are very satisfied with their total compensation package. There is a strong sense that their total compensation is about the same as that of their peers. Moreover, most are confident they will continue working for their organization for at least the next year. There is also a high degree of confidence that they will receive a pay increase in the next year. Finally, there is a strong sense that the job market for PAC executives is "good." i Executive Summary..........................................................................................................................i Who Are PAC Executives..................................................................................................................2 Work Experience..................................................................................................................................3 Job Responsibilities.............................................................................................................................4 Salary and Compensation.............................................................................................................5-6 Health Insurance and Other Benefits...........................................................................................................................................7 Job Satisfaction......................................................................................................................................8 Acknowledgements..............................................................................................................................9 About NABPAC............................................................................................................................................9 We are grateful to the NABPAC Survey Working Group members, Public Opinion Strategies and Sagac Public Affairs who supported this research and report. Their contributions have enabled us to continue the important work of the Association and to promote meaningful information for political action committee professionals. 1 Who are PAC Executives? 94% Most indicate they work for a corporation work for a corporation 20% 11% 8% 2 have a college or graduate degree College/University graduate or higher 58% College/University incomplete High school graduate 94% 5% 1% work for an association of corporate members work for an association of individual members 69% are between ages 25-44 51% have worked for their specific PAC for 4 – 12 years work for an association of individual and corporate members Work Experience 60% have been employed in the PAC market for 4 – 12 years 54% describe their current position as PAC Director or Manager 49% 45% have experience working on political campaigns have legislative experience working in a state or U.S. Capitol 3 Job Responsibilities As a percentage of time, PAC executive activities include: Even Time is relatively evenly divided between many different areas PAC-related activities 42% 17% Lobbying 17% Other administrative functions 10% Grassroots 66% 4 report directly to a vice president or senior vice president 68% run the PACs with one to two employees 55% supervise 3 employees or fewer Salary and Compensation Performance compensation is divided into three areas 98% 14% 1% receive year-end bonus receive ongoing incentive receive commission for funds raised 59% receive performance compensation in addition to base salary 41% receive a fixed salary with no bonus 5 Salary and Compensation Salaries for PAC executives nearly double toward the end of the age spectrum 18-34: 35-44: 45-54: 55+: $91,000 $125,000 $148,300 $172,800 Higher salaries are commensurate with the amount of time an executive works for a PAC (2-3 yrs) Less than 2 years: 2-3 years: 4-12 years: 13+: $111,200 $95,000 $127,500 $147,300 *More recent hires are rewarded with more compensation 6 Health Insurance 99% of employers provide medical benefits 86% 70% of PAC executives receive all or most of payment for medical benefits from employer of PAC executives participate in employer-sponsored medical benefits 7 Job Satisfaction 91% 73% are satisfied with their compensation packages 8 Better $115,000 Worse $122,000 About the Same 91% believe they will receive a pay increase 70% believe the job market for PAC executives is good feel their compensation is better or about the same as their peers Average Salary $127,000 83% 22% 28% 51% are confident they will work for their respective organization for at least one year 73% are confident they will work for their respective organization for at least one year NABPAC gratefully acknowledges the contributions of 2012 President Hannah Simone of the Nuclear Energy Institute and the NABPAC Board of Directors whose support made this report possible. For their leadership as Survey Working Group members, input and help generating responses, we thank Linda Auglis of the National Beer Wholesalers Association, Maurie Dugger of Edison Electric Institute, Meaghan Killion Joyce of International Paper and Scott Reiter of the National Association of Realtors. We also thank Trey Richardson, Jordan Edmund and Tim Taylor of Sagac Public Affairs for project and records management, as well as Billy Oorbeek of The Oorbeek Group and Jody Thomas of Tour de Force Group for their generosity in sharing their data files. NABPAC is a 501(c)(6) non-profit trade association founded in 1977. NABPAC is the nation's only organization dedicated to promoting, defending and professionalizing PACs and political action professionals. From its founding, NABPAC has been dedicated to the premise that voluntary contributions to candidates, Parties and other political entities provide the critical resources necessary for pro-business candidates to carry their messages to voters. NABPAC's mission has evolved with the maturation and sophistication of the business PAC community. In its early years, NABPAC promoted the need for corporations to form "separate segregated funds" (colloquially known as PACs). During the 1980s and 1990s, NABPAC fought to preserve PACs as they faced challenges from a "reform" community that sought their elimination. As PACs have demonstrated their viability and become more widely accepted as sources of funding for congressional candidates, NABPAC has expanded educational training programs for members in four critical areas: communications, compliance, fundraising and strategic planning. Now in its fourth decade of existence, NABPAC offers a comprehensive series of educational offerings through an annual conference, eight annual PACRap luncheons, six annual webinars, and regular special briefings on topics of concern. Members also are provided unparalleled opportunities to receive timely, insightful input from legal and PAC professionals through the Legal Hotline and PAC Help Hotline, and a formal Mentor Program. NABPAC's history is a tribute to the visionary business leaders who started with a simple idea in 1977. NABPAC's future is dedicated to building on this rich tradition and providing America's business community with ready access to innovative, best-in-class strategic PAC management tools. To find out more about NABPAC, please visit www.nabpac.org or contact Executive Director Geoff Ziebart directly at (202) 341-3780. National Association of Business Political Action Committees 101 Constitution Avenue, N.W., Suite L-110 Washington, DC 20001 O: (202) 341-3780 F: (202) 478-0342 [email protected] 9 101 Constitution Avenue, N.W., Suite L-110 Washington, DC 20001 O: (202) 341-3780 F: (202) 478-0342 [email protected]
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