30 May 2007 | Antony Barton
The typical CPO in a top American corporation is unlikely to be promoted further before retirement, according to new research.
The research also reveals that CPOs in Fortune 500 firms are typically 49-year-old men who report to one level below the CEO, are responsible for a spend of $3.5 billion (£1.8 million) per annum and have 19 years of purchasing experience.
A male CPO in such a company earns around $366,000 (£185,000) per year in compensation, while a female CPO earns $418,000 (£211,000). The term "compensation" is defined as salary plus bonus and health premium benefits, with related variables.
The study, Chief Purchasing Officers' Mobility, Compensation Benchmarks and Demographics: A Study of Fortune 500 Firms, also says there are no discernable patterns of previous experience or education that can predict whether an individual will become a CPO.
Research group Caps Research conducted the study by sending an e-questionnaire to 436 of the Fortune 500 CPOS, with 56 responding.