Procurement average pay packet hits $115k

Salaries for supply management professionals grew strongly last year, with the average professional now being paid $115,440 – up 5% on 2015.

The US-based Institute of Supply Management (ISM) said the rise was based in part on a strong jobs market in 2016, which continued from 2015.

Both base salaries and overall compensation, including bonuses and stock options, grew solidly when compared to salary growth among professionals overall.

Median compensation in 2016 increased by 3.2% to $96,000, compared to 2015. CPOs earned an average of $259,340. Interestingly the average for men, at $246,687, was lower than that for women, which came in at $299,509.

However, women lagged behind men in earnings at all lower grades. Average pay for vice presidents of procurement or supply management was $135,757. For men the figure was $151,080, whereas for women it was $105,425.

The top 10% of earners saw even greater pay rises in 2016 with an average of salary of $295,887, up 11.2% on 2015.

The figures were based on more than 3,800 responses to a survey carried out in February and March this year.

Average pay by position

CPO – $259,340

VP of procurement – $135,757

Procurement director – $153,347

Procurement manager – $109,401

Experienced practitioner – $78,937

Emerging practitioner – $83,678

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