Compensation Resources, Inc. Releases Its 2007 Year-end Compensation Survey - July 11, 2008

Upper Saddle River, N.J. – December 6, 2007 - Compensation Resources,
Inc. (CRI) has released the results of its 2007 Year-End Compensation
Survey. The purpose of this study was to obtain compensation data to be
used for trending and planning purposes at companies of all sizes and
shapes. Data was compiled from survey questions that were developed by
CRI and distributed to companies in 12 industrial classifications, in
addition to Not-for-Profit organizations. The survey sampled year-end
compensation data from a variety of organizations, collected in
November 2007.


Results indicated that the average merit/salary
increase for all employee functional groups was 4.1% in 2007, and 4.1%
is also the average projected merit/salary increase for all groups in
2008. Generally speaking, Privately-Held companies reported higher
percentages of actual 2007 and budgeted 2008 merit increases overall as
compared to Publicly-Traded and Not-For-Profit organizations.



Highlights of this year’s results, including a comparison with the prior year’s findings are represented below:




MERIT/SALARY INCREASE


2006 Results 2007 Results


Group Actual 2006 Projected 2007 Actual 2007 Projected 2008


Executive 4.5% 4.3% 4.7% 4.5%


Management 4.2% 4.2% 4.3% 4.2%


Exempt Salaried 4.1% 3.9% 3.9% 3.9%


Non-Exempt Salaried 3.8% 3.9% 3.9% 4.2%


Hourly/Production 3.6% 3.7% 3.7% 3.8%


All Groups Average 4.0% 4.0% 4.1% 4.1%




Results indicated that target awards for Short-Term Incentive Plans are
much higher in Publicly-Traded and Privately-Held companies than in
Not-for-Profit organizations. Overall, in terms of the Compensation
Package Mix, Base Salary makes up the largest percentage of the mix,
followed by Annual Bonus/Incentives, and the Long-Term Incentives. The
majority of the survey participants do not have a pre-established
Compensation Package Mix. Stock Appreciation Rights continue to be the
least commonly used type of Long-Term Incentive Plan.



Companies should consider the following for the 2008 compensation year:




* Determine salary budget increase,


* Determine salary structure movement; and


* Evaluate incentive plans.




It is also important to remember that the total compensation package is
not just about pay, it is also about the work culture, hours, benefits,
career development, and promotional opportunities, and how they balance
with the employee’s life outside the organization.


If you would like to order the complete report of
the 2007 Year-End Compensation Survey, please contact Andrew Sellers at
877-934-0505 x115 or order online.

Paul R. Dorf is the Managing Director of Compensation Resources, Inc.
He is responsible for directing consulting services in all areas of
executive compensation, short and long-term incentives, sales
compensation, performance management systems, and pay-for-performance
salary administration. He has over 40 years of Human Resource and
Compensation experience and has held various executive positions with a
number of large corporate organizations. He also has over 20 years of
direct consulting experience as head of the Executive Compensation
Consulting Practices for major accounting and actuarial/benefit
consulting firms, including KPMG, Deloitte Touche Tohmatsu (formerly
Touche Ross), and Kwasha Lipton.