1. Insights from the MACE Compensation & Operations Surveys Larry Dowell, Dowell Management 1 2. Compensation & Benefits Survey 2012 3. About MACE Founded in 1972, serves five-state region Iowa, Minnesota, Nebraska, North Dakota, South Dakota Purpose is three-fold Provide continuing education opportunities Facilitate connection with industry peers Develop a regional ethic among chambers of commerce Expanded Product Line Annual Conference Compensation & Benefits Survey Membership Satisfaction Survey Newsline Chamber Insight Webinars 3 4. Survey Background Methodology Self reporting, sampling, corrupt data Who was surveyed Iowa, Illinois, Nebraska, Minnesota, North Dakota, South Dakota, Wisconsin Who participated 4 5. State Participation WI 26% IL 20% SD 4% ND 3% NE 6% 49 6 56 8 42 IA 19% MN 23% 12 40 Trend Lines Overall, participation was up in 2012 from 2010. The addition of Illinois in 2012 increased overall numbers substantially. 5 6. Gender of Chief Paid Executive 36.7% 63.2% Percentages have remained stable since 2008 6 7. Age of Chief Paid Executive 5% 10% 20% 35% 18-29 30-37 38-45 46-55 30% Over 55 7 8. Interesting 2012 Facts 93% Of chambers have a full-time Chief Paid Executive $16,225 Average amount added to reserves during last fiscal year 4% 44.7 Average retirement match by employer for Executive 92% Average age of chamber Executive $35,658 Special Projects Manager is the lowest paid professional staff member Chambers surveyed use Facebook. 15% have a mobile app. $309.51 Average monthly amount employer pays for Executives auto reimbursement 8 9. Chambers that operate a CVB Wisconsin Illinois 10% 38% Iowa 33% South Dakota Minnesota 85% 35% Nebraska 50% North Dakota 0% 9 10. Expense Categories Trends 48% Administration Salaries, benefits, etc. 16% Operations Rent, utilities, buildings, equipment, etc. 33% Programs Generally, as budgets increase, the percentage spent on programs also increases. All other expenses 10 11. Does chamber directly contribute to cost of medical insurance? 49% 2012 Yes 51% No 2010 Medical Insurance Half of chambers surveyed contribute to medical insurance. Over 95% of chambers with budgets over $300,000 contribute to the cost of medical insurance. 11 12. If yes, what percent is paid for by the Chamber? % Paid Employee Spouse Family 1 19 % 6.5% 4.3% 4.3% 20 50 % 9.8% 10.6% 10.6% 51 70 % 7.6% 8.5% 8.5% 71 80 % 33.7% 40.4% 40.4% 81 99 % 5.4% 8.5% 8.5% 100 % 37% 27.6% 27.6% 12 13. Market Penetration 45% $50k 29% $200k 14% $750k % of businesses who are chamber members drop as chamber grows larger Chamber members Potential chamber members 13 14. Membership Models Trends 50% Investment Formula Traditional dues formula factoring in employee count, etc. 30% Tiered Dues Members choose dues levels based on needs or interest 20% Other 10% of chambers using membership investment formulas plan on changing their membership model in the next 24 months Hybrid or other approaches 14 15. Compensation Position Mean Median Minimum Maximum Chief Paid Executive $65,239.86 $58,000.00 $23,900.00 $190,000.00 Membership Manager $34,217.98 $33,000.00 commission only $81,500.00 Membership Salesperson $29,273.35 $27,840.96 commission only $80,000.00 Communications Manager $40,485.81 $38,000.00 $25,000.00 $68,000.00 CVB Manager $46,648.84 $25,168.00 $107,625.00 Program Manager $38,790.94 $38,500.00 $19,337.00 $61,285.00 Economic Development Manager $66,129.57 $67,500.00 $27,040.00 $130,000.00 Administrative Assistant or Receptionist $29,029.25 $29,120.00 $16,000.00 $50,700.00 $38,000.00 15 16. Annual Base Salary Mean 2006 2008 2010 2012 Chief Paid Executive $54,082 $55,060 $56,257 $65,239 Vice President $47,045 $50,198 $53,407 $55,007 Membership Manager $32,423 $35,281 $33,686 $34,217 16 17. Bonus Opportunity Position Percent who have bonus plan Average Potential Bonus Chief Paid Executive 47% $7,728.84 Membership Manager 50% $4,248.38 Membership Salesperson 38% $6,336.36 Communications Manager 34% $1,909.09 CVB Manager 39% $2,370.00 Program Manager 54% $1,742.11 Economic Development Manager 35% $5,700.00 Administrative Assistant or Receptionist 28% $989.86 17 18. Profile of the Average Chamber Executive $50,001 $100,000 $200,001 $300,000 $500,001 $750,000 More than $1 million Female 45 years old Bachelors 4-6 year tenure 200 members $36,230 Female 46 years old Bachelors 7-10 year tenure 401 members $51,971 Male 46 years old Bachelors 7-10 year tenure 607 members $82,433 Male 47 years old Bachelors 11-15 year tenure 1,154 members $131,825 18 19. Chamber Operations Survey 2013 20. State Participation Methodology WI 20% Self reporting, sampling, corrupt data IA 31% SD 12% Who was surveyed Iowa, Nebraska, Minnesota, North Dakota, South Dakota, Wisconsin ND 5% NE 10% Small vs. Large Chambers MN 23% 20 21. Survey Categories Organizational Structure and Function Staffing & Continuing Education Events Governance Public Policy and Political Action Membership Financials Communications 21 22. Organizational Structure & Function Lost a Major Function 8% 40% of those are no longer the primary economic development organization U.S. Chamber Member Have an adopted strategic plan 57% 78% 22 23. Governance Average Board Size Below $50k VOTING NON-VOTING COMMITTEE $200k - $300k $750k $1m > $1m 23 24. Membership Budget Size # of Members Retention Rate Minimum Dues Highest Dues $50,000 and below 107.2 99% $165.00 $681.80 $100k - $200k 221.3 88% $190.15 $3,856.43 $300k - $500k 432.2 73% $261.00 $5,208.65 $750k - $1m 458.7 88% $299.33 $6,073.33 More than $1m 863.3 78% $603.30 $63,522.22 24 25. Communication Yes No Printed 41% 59% Email 69% PDF 23% Website 45% Local Paper 12% Newsletters 31% 77% 55% 88% 25 26. Staffing & Continuing Education Average employee tenure is 6.5 years Regardless of size of chamber 3.5 3 2.5 2 1.5 1 0.5 2006 Full-Time Management 2008 2010 2012 Full-Time Non-Management 2013 Part-Time 26 27. Events 21% 33% 35% Community Events Non-member premium on events Free Membership Events 46% Paid Membership Events Average # of events last year 7 16 11 27 28. Public Policy & Political Action At what levels do you advocate on behalf of members? None 6% 14% Have a PAC 70% 60% Local State Federal 30% 46% Have a Public Policy Committee 28 29. Financials Profitability 77% 2008 Average dues vs. non-dues Revenue 55% 71% 70% 2010 2012 2013 47% Dues Revenue 53% 40 Non-Dues Non-Dues Revenue Revenue 29 30. Conclusion Full compensation survey report and operations survey report are available on MACE Website www.MidAmericaChamberExecutives.com Chambers desiring custom reports or specific data requests should be directed to: Carrie Kirkpatrick Dowell Management carrie@dowellmgmt.com 651-293-1023 30 31. Thank you Any questions?