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electronicdesign.com
2011Annual
Salary Survey
Report
Top50Employers
E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
Dear Reader,
Joe Desposito
Editor-in-Chief
Electronic Design
E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
jaymcsherry@earthlink.net
Faces Of The
Engineering
Lifecycle
With this special edition of our annual Salary Survey, we take you on a comprehensive tour of
the engineering career, from students and new grads looking for or working their first jobs to
experienced veterans getting ready to retire.
ach year around this time, we survey engineering professionals for a look at the
latest compensation trends and the issues that are most important to them.
This year weve expanded our coverage to include the views of the
incoming class of engineering students, as well as recent graduates,
for their emerging opinions of the profession.
To do this we teamed up with the IEEEthe
worlds largest professional association for engineersand surveyed more 5000 undergrads, postgraduate students, and recent grads. Among other
things, our survey shows how they see their educa3
E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
that isnt fostered in graduates from other majors, said a senior at Rutgers University. Companies recognize this and generally offer good
career paths for graduates with this type of training.
One confident student at the University of Utah put it another way:
Biotechnology is still a growing industry. Besides, if I cant find a
job, I will make one.
Despite the difficulties that some see for the engineering job market,
an overwhelming 92% of the engineering students we surveyed said they
would still recommend engineering as a career path to another young
person looking to choose a profession. I never went into engineering for
the salary potential, said a junior at Notre Dame. I went into it because
its something I thought (and was correct in thinking) Id enjoy.
More than a third (36%) of the students who responded said theyre
involved in corporate-sponsored projects, while 42% work with professors in technology labs on projects for commercial applications as
part of their curriculum. And 45% said theyve entered technology/
design contests at their school.
On average, students said that about two-thirds of what they learn in
school is theoretical engineering (gaining a fundamental understanding of
engineering principles) compared to learning how to apply those theoretical principles to real-world problems. But is this really the best approach?
Nearly 63% of the students we surveyed believe they would benefit more
if colleges put a greater emphasis on teaching practical applications.
Each engineering course should have labs associated with them so
that the students can apply the theoretical understanding of the material
into a practical design and observe how devices are actually made,
said a junior at Temple University.
A student at Boise State University put it this way: Students that
dont already have a firm grasp on what engineering covers dont
really get the most from their classes. For example, when teaching op
amps, maybe we should understand why we use them. What do they
do for us? What are some practical applications where you would see
an example of this circuit?
3. Salary
4. Hours required
5. Travel time to/from
work
6. Health benefits
E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
Starting Salaries
Whats in your wallet?
Under 30,000
61%
30,000-39,999
10%
40,000-49,999
6%
50,000-59,999
70,000 or more
5%
10%
Engineering graduates face uncertain times in todays faltering economy, particularly when job growth in so many sectors is expected to
remain flat over the next few years. Also contributing to this climate of
uncertainty is offshoring, the increasing reliance on international engineering talent, especially as China and India begin to flex their hightech muscle. Whats more, the shrinking defense budget being proposed
by some in Washington could also drive competition for new jobs.
If there is a hot spot in this rather chill assessment, its that high-tech
companies must hire new engineering talent if they are to maintain
their competitive edge. Shrinking staff through attrition is all too often
a shortcut to stagnation.
Is there anything that newly minted graduates can do to sharpen
their own competitive edge? Make certain that your skills are as
cutting-edge as the companies you hope to find a berth in. Seminars,
workshops, and continuing education are excellent ways to preserve or
increase your market potential.
Only a slight majority (58%) of the recent graduates we surveyed said
theyd landed a job, with the rest either still looking for work or finishing up an internship. Of those who were working, more than half (56%)
landed their first job after obtaining their bachelors degree, while 33%
$33,647
$38,405
$44,808
E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
said theyd waited until theyd achieved their masters or doctorate before heading off to work.
Entrepreneur 1%
For those who held off, it might have been worth
Unemployed/
PostEmployed Contract
the wait. Incomes for recent graduates with advanced
seeking work 31%
graduate
part-time worker/
studies or
8%
consultant
degrees average nearly $46,800, or about 25% more
internship
5%
than the $37,400 starting pay for those with only their bachelors degrees.
11%
Nearly 43% of the recently employed grads had a job lined up
before they graduated, while another 40% found their first job within pretty much dead, really. So even though the salary may not be the best,
six months of leaving school. About one in four (26%) learned about its definitely better than being jobless right out of college. Hopefully I
the job from company recruiters on campus, and another 21% found can gather experience and move up the ladder in the near future.
their first job online, either at an Internet job site or company Web site.
But it pays to have friends. Nearly 40% learned about their first job by The Real World
way of a referral from a friend, colleague, or family member.
Some of the recent grads we surveyed were fortunate to land their
The good news is that nine out of 10 recent grads who have landed a dream jobs right out of school. I had wanted to work at NASA since
job were able to find work in an engineering-related field, and 60% felt I was a kid, said a recent engineering graduate from Maryland. To
confident that there was a clear path to growth at the company theyd have the opportunity to work there now is just amazing.
chosen to start their careers at.
But even some of those who were fortunate to find work quickly
often
found themselves in situations that either werent rewarding
Nearly three out of four of those surveyed said they were generally satisfied with their first job. Also, many saw it as an opportunity to develop enough or didnt fit the job description. My employer was not honest
new ways of thinking, acquire new skills, learn how to work under pres- about what my job would be or about the hours required for the job,
declared a recent grad from Oklahoma. The job itself was something
sure, and network with people who could be important to their careers.
The tasks were coordinated according to my level of experience, that in my opinion didnt require a college diploma.
but challenging enough that I was able to learn and grow quickly, said
The majority (52%) of recent grads still seeking to land their
a recent graduate from Lakehead University in Ontario.
first job said they were looking to get into the bigger firms, where
Another recent grad put it this way: At first I was not satisfied, because they expect the money and career opportunities to be better. And
I felt what I was doing wasnt engineering work. I did more actual engi- that shouldnt be so surprising. Among their recently employed
neering before I graduated. After about eight months, I had the oppor- peers, 70% at large organizations say they see a clear path to career
tunity to change departments. At that point, I was doing what I felt was growth, compared to only 43% who landed their first jobs at smaller companies.
more suited to engineering.
But young engineering professionals are quickly learning that satisMany still looking to land their first job out of school found themfaction with the job doesnt always extend to satisfaction with the pay. selves frustrated with the current job prospects. There just arent
Barely half (56%) of those surveyed felt they were being adequately many opportunities available right now, complained one recent grad
compensated for the work they were doing. In fact, only about a third from Hawaii. Most of the employers that I had a chance to meet with
said their total pay was on par with what they believed other recent wanted certifications and experience in addition to my BS in engineerengineering graduates were making, while close to 40% felt their take- ing. Its very frustrating since Im a recent graduate just hoping to gain
home pay was less competitive.
any kind of work experience.
Its hard finding a decent engineering job nowadays, said one
Companies are not willing to train new graduates. They always
recent grad of the University of Texas at Arlington. I graduated with expect you to have some experience within their field, another recent
a degree in electrical engineering, but it was my software skills that graduate complained. They see the new graduate as an expense more
landed me a job. The EE job market in Jacksonville (where I live) is than a potential answer for their needs. Another factor is outsourcing.
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E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
40%
40
21%
35
20%
30
6%
20
7%
15
7%
25
10
5
0
Many big companies have a freeze on local hiring. They would rather
employ and train employees overseas.
Many recent grads are finding that while their education provided
them with a broad set of knowledge, most employers are seeking specialized skills. Thats a difficult situation new graduates face, said a
recent grad from Maine. I cannot wait for the ideal job opportunity,
so I have to move to other options in my top preference list. But its
practically impossible to have in-depth knowledge and experience in
every area.
Some recent grads felt their education left them ill prepared for their
first jobs in engineering. I wish we had done an actual non-trivial chip
design with tape-out and lab characterization, rather than talk about
the process all the time in school, one complained.
Another felt unprepared in parts procurement. In college, you usually learn to use generic parts, but the bits and pieces on how to decide
which, out of a thousand, components do the same thing would be a
valuable asset.
One simply put it this way: I wish we were explicitly taught why things
are done the way they are, instead of a lot of focus on how they are done.
Dream Jobs
Many students imagine themselves in dream jobs designing stateof-the-art products like renewable energy, biomedical engineering,
robotics, nanotechnology, virtual reality, and defense systems and
hope to work for leading technology centers like Apple, Google,
NASA, Microsoft, IBM, and Intel.
I want to work for Google, maybe in security or software development,
fancied one sophomore now studying at the University of Minnesota.
My dream job is to be a deep brain stimulation development engineer, mused one graduating senior. I would like to design the circuitry of medical devices.
I am torn between the desire to run my own technology company and the desire to be a CTO of an existing technology company,
dreamed one sophomore enrolled at Lehigh University. I see myself
happiest being a liaison between the IT staff and the board of directors.
The combination of technological prowess and social skills that such a
position requires would be perfect.
I want to work in applied robotics and artificial intelligence, said
a senior at the University of Alabama at Birmingham. Id like to
research how the brain works so we can replicate it and help people
with things like Alzheimers and other types of memory loss.
My dream job is one geared towards programming AI modules for
either videogames or real-life robots, said a junior at Notre Dame. I
dont mind corporate grunt work, but its not something Id see myself
doing for the rest of my life.
Im sort of stuck between renewable energy and music technology,
the former having more jobs and a higher salary, but the latter being
more in line with my hobbies and interests, said a freshman at the
Georgia Institute of Technology.
My dream job is research and development in robotics, most likely
my own company, contracting to the military or government, said a
senior at the University of Nevada, Reno.
The future lies in space travel, envisioned a junior at the New
Jersey Institute of Technology. As a power-engineering student, I see
tremendous potential for new energy technologies that can be safe,
compact, and economical for future space endeavors. One day, mankind will be mining asteroid belts for ores, traveling across systems
at incredible speeds, and harnessing the power of stars for abundant,
reliable energy. I hope to explore every stage of these concepts so that
one day, this may become a reality.
E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
Engineering Salaries
Remain Stable For 2011
For the second consecutive year, compensation
levels stay flat as OEMs continue to ride out the
recession.
63%
401(k) match
57%
Time off
40%
Further education/training
20%
Pension plan
18%
16%
Stock options
15%
15%
13%
Tuition reimbursement
14%
50%
Personal performance
49%
25%
Patent awards
11%
9%
Retention bonus
4%
Certification/training
3%
Signing bonus
2%
E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
Base
salary
Total
compensation
$130,107
$141,762
$124,357
$137,226
Technical director/
director of engineering/R&D/
engineering manager
$113,170
$125,335
$107,630
$116,693
$105,750
$115,885
$103,437
$112,966
$100,274
$110,388
President/owner/CXO/
other executive management
$98,025
$109,364
Software engineer
$99,384
QC/evaluation/test manager
$92,923
Systems engineer/
applications engineer
$93,351
$102,750
Consulting engineer/scientist
$88,538
$98,680
$89,078
$98,340
Manufacturing/production manager
$86,500
$93,341
$83,879
$90,427
$83,280
Test engineer
Manufacturing/production engineer
Average Salaries By
Geographic Region
The industry is changing, but the opportunities are still out there,
said a consumer electronics engineer from Texas. Engineers must
shift their thinking and be prepared to migrate to new opportunities in
order to remain successful.
But some survey respondents were less bullish. Five to 10 years
ago, companies still saw the value in core product experience as
something that needed to be retained and passed on, stated an engineering manager from Connecticut. With the expanding reliance on
sourced labor and little permanent hiring of young engineers, there
are few people to carry the knowledge forward. The average age of
engineers is climbing and reduced enrollments in engineering majors
are creating a perfect storm of the need to turn elsewhere (offshore) to
fill those needs.
Geographic location plays a big role in income levels, and the Pacific
region is still on top with total incomes averaging $117,984, followed
by the West South Central region ($116,416). Next up was the New
England states ($108,838) and the Mid-Atlantic region ($106,295).
The market segment you work in is another major factor thats
influencing pay. Chip houses led the way in engineering pay again this
year, at $141,272, followed by computer OEMs ($119,496), military
contractors ($113,313), communications systems ($113,266), and
medical electronics firms ($106,969).
But no matter where you work, chances are youre working harder
for the money than ever before. This year, engineers on average claim
to be putting in a whopping 65 hours a week on the job, including 41
hours at the office, 11 hours at home, seven hours at other locations,
and six hours on call.
Average Salaries By Job Function
Base salary
Total compensation
Engineering management
$119,366
$131,556
$107,172
Executive/operating management
$108,078
$120,865
$104,144
$92,484
$100,700
Other engineering
$85,723
$94,029
Base salary
Total compensation
$125,849
$141,272
Computer systems/boards/
peripherals/software
$109,360
$119,496
Government/military
$106,327
$113,313
$89,827
Communications systems/
equipment
$103,625
$113,266
$80,290
$87,801
Medical electronics
$97,085
$106,969
$74,558
$80,192
Avionics/marine/space
$99,791
$106,729
$92,974
$100,875
Base salary
Total compensation
$91,772
$100,743
Pacific
$107,441
$117,984
Software
$91,547
$99,899
$106,352
$116,416
$90,562
$99,204
New England
$100,101
$108,838
$92,260
$99,105
Mid-Atlantic
$98,362
$106,295
Automotive electronics
$89,706
$97,725
$96,918
$104,790
Consultant
$85,726
$95,892
Mountain
$90,583
$99,545
Consumer electronics
$87,729
$95,328
$89,239
$97,124
South Atlantic
$88,110
$95,435
$85,604
$94,038
$88,656
$94,769
$74,914
$82,588
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I think companies are expecting more work from fewer individuals, commented an R&D engineer from Pennsylvania This
was established during the recession, and I dont see that expectation
changing back to where it was previously.
One department lead engineer in California put it this way:
Corporate America is squeezing the life out of every employee
possible. Ive survived four layoffs and essentially absorbed the
workload of six other colleagues. My pay has changed by 3%,
up thankfully. The only place growing is upper management and
their friends.
Certain perks made a comeback in 2011. Nearly 57% of survey
respondents say they expect to see 401(k) match plans from their
companies this year (compared to only 49% last year), and 63%
were back to getting company-paid health benefits (compared to
57% in 2010).
There were some glimmers of hope on the employment outlook in
this years survey, as 33% of survey respondents say their company
plans to increase the number of engineering jobs in the coming year,
up from 29% a year ago. Whats more, nearly half (48%) say their
organization is having difficulty finding qualified candidates for open
engineering positions, compared to 42% last year.
Due to job market growth in the sector, and competitive career
recruitment, my company has been forced to step up the game to
Average Salaries By Type Of Design
Work You Do
Base salary
Average Salaries
By Size Of Company
Base salary
Total compensation
$116,361
$126,416
$108,812
$118,798
$109,197
$120,695
$106,197
$115,648
$99,104
$107,357
$99,263
$106,843
$91,757
$100,208
$91,404
$100,201
$5 million to $9 million
$85,804
$93,451
$80,474
$88,607
Base salary
Total compensation
40 years or more
$93,391
$103,161
35 to 39 years
$112,423
$122,739
30 to 34 years
$109,995
$119,154
25 to 29 years
$105,500
$114,879
20 to 24 years
$97,008
$106,218
15 to 19 years
$89,784
$98,571
10 to 14 years
$82,749
$90,645
5 to 9 years
$71,688
$79,278
1 to 4 years
$57,857
$62,865
$51,053
$59,107
Total compensation
retain top talent, offered one development engineer currently with the
International Automotive Components Group. Wage increases and
additional benefits have been reinstated this year.
The toughest positions to fill are in analog design (38%), software
(37%), systems engineering (36%), power electronics (29%), and
mechanical design (27%).
Despite the tough job market, most engineers remain bullish
on the profession. The majority (55%) still find themselves sufficiently challenged intellectually with the projects they work on,
while only 10% claim theyre not. Nearly two-thirds (63%) feel
adequately compensated for the work they do. And, 86% would
recommend engineering as a career path to a young person looking
to choose a profession.
Comparing other career choices with engineering can show
how engineering is still a very promising and challenging career
today, said a senior engineer with more than 30 years of experience. Considering the current economic crisis in the USA and in
most other industrialized nations, engineering continues to be a
leading technologically oriented career that has more opportunities for employment than other choices. Technology is advancing
faster than ever, so engineering is the best career choice to keep up
with technology, and keeping up with technology is the best bet
for any profession.
$128,250
$142,992
$113,552
$123,222
$107,012
$114,338
$101,986
$111,941
$102,382
$110,296
Software design/development/programming
$100,920
$110,2011
$100,713
$109,975
Power design
$95,193
$103,914
$91,046
$99,831
$89,303
$98,407
$89,605
$97,581
Safety/security
$87,379
$97,010
$88,055
$95,845
$88,675
$95,736
Staying Smart
$87,858
$95,449
$86,518
$95,422
E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
The universities today teach you how to solve problems, but they
dont teach you about leadership, contract negotiations, or the legal
hurdles that can affect engineers, observed an engineer from North
Carolina.
Many of the new hires and interns have the engineering knowledge, but many of them lack basic Unix skills, quipped a senior MTS
from Wisconsin. They have grown up on Windows PCs and are
not prepared for working on real systems. It takes them much
longer to become self-sufficient.
But not everyone sees it this way. Internships and co-op
assignments are more common today, so many new graduates come into the workplace better prepared than I was for
the realities of the working world, said a product manager
who responded to our survey.
A senior engineering manager at Rockwell Collins had this
to say: Todays graduating engineers have a greater opportunity to make an immediate impact to society because of the amount
of information available at their fingertips, namely, the Internet.
We asked survey respondents this year to tell us some of the things
they didnt learn in school that they wish they had. While many got
specific about particular technologies like embedded programming,
CAD, and analog circuitry, most talked about things outside of engineering like project management, team building, mentoring, time
management, interpersonal skills, business law, marketing, regulatory
requirements, accounting skills, technical writingand dealing with
corporate politics.
I could have used a stronger business background, complained a
lead engineer now at Honeywell. The ability to make a business case
for spending money on engineering development is essential to any
engineer working in commercial engineering.
But in reality, there are no shortcuts to on-the-job experience. I
learned in college that there is more to know than you can learn in college, said one senior engineer. As one of my professors explained,
college gives you the skeleton of knowledge to be an engineer. Experience puts the flesh on the bones.
And what advice does todays working engineers have for students
getting ready to enter the field? Continue to learn the basics, dont
discount graduate school, do as many internships as possible, dont
expect to get your dream job overnight, bring passion to your first
joband start saving early for retirement.
Do not stop learning, advised a principal engineer at Oracle. Stop
and you will fall behind and likely never catch up. Be open to new
ideas and creative solutions. Be willing to share new ideas with peers.
Working together in a team is the only way projects can move forward
with the speed needed to keep up with your competition.
Believe in yourself, suggested one senior electrical engineer. You
are the one who has the tools and ability to solve the difficult problems
that the world faces. Find energy alternatives, and develop ways to
provide safe water and healthy environments. Politicians and lawyers
cant do these thingsbut you can.
You have the knowledge, but experience takes time, pointed out a
research lab technologist at the University of Toronto. Make a thousand
rules of thumb for yourself to cover every aspect of design, and use them.
An engineer/developer at Ericsson summed it up this way: Dont
just rely on your college degree to make you successful. Find some-
ber one issue causing engineers to lose sleep this yeareven more
than concerns about the general health of the economy. But 44% of
those surveyed feel their company doesnt do enough to support continuing education among its engineers.
They dont offer to pay for seminars or conferences for engineers
anymore, said a senior product development engineer at a military
contractor. To attend a conference, I must use vacation time rather
than paid work days. This indicates to me that the company isnt interested in furthering my knowledge/skill sets, even though it would be a
benefit to the company.
Tuition reimbursement was reinstated very recently after being
suspended for several years, said an electronics products manager in
Detroit. Travel authorizations for trade shows are almost impossible
to get, and theres no money in the budget to cover tuition charges for
online seminars or training classes. In-house course offerings have
also been scaled back drastically over the last decade.
It isnt a lack of financial support, so much as a lackof emphasis on
staying current and sharing information, said a senior project engineer in
Indiana. I think this is common in many companies. Some people will do
it on their own, but I think the results are more synergistic when there is a
corporate emphasis.
Whats more, only 47% believe that todays graduating engineers
are as well prepared for the job as they wereand 40% feel theyre
less prepared.
Students coming into the field have far too little hands-on experience with technology, said a senior project engineer, although
wonderful tools, computers, and the Internet have replaced many of
the technical hobbies of previous generations. Since many public high
schools cannot afford to maintain industrial arts programs, many students have no idea how anything is actually made.
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E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
have cut engineering budgets to the bone, and then some. Amenities
are almost nonexistent. Money for travel and training are difficult to
come by, which has many engineers frustrated and in some instances
worried about their futures.
At the same time engineers tend to be very self-reliant. They
typically believe that talent and hard work will carry them through,
despite what may be temporary tough times. If their outlook can
be summed up in one sentence, it might be that people who are
good at what they do will continue to advance through good times
and bad.
1. Maxim cofounder Dave Fullagar and his wife Betsy travelled to South Africa
in 2007 and fell in love with the village of Boxahuku, leading them to found
InAfricanShoes.org, which builds and equips libraries for children.
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E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
already in their sixties said they wont be able to retire until theyre 70
or olderwith 42% saying this was later than theyd planned. In fact,
only 10% of those already nearing retirement age said that theres no
chance they would accept another engineering job following retirement if it were offered to them.
While 18% said the prospect of coming out of retirement would be
very unlikely for them, nearly half (42%) of engineers in their sixties
said it wouldnt be out of the question if the right opportunity were to
come along. And nearly one in five would definitely take something
else rather than retire at this point.
Although engineering continues to be a well-paying profession, engineers surprisingly seem to be flying on their own when it comes to their
retirement planning. More than two-thirds (68%) say they dont have a
professional financial advisor helping them plan their retirement.
I find that depending on myself is the best way, said one respondent. I have to try and save as much as I can now to make sure my
future is secure. All of the different financial products are nice, but who
really can take those kinds of risks?
In addition to Social Security, the sources of income engineers will
depend on most to help fund their retirement include 401(k) plans
(66%), their personal savings accounts, money market accounts and
CDs (55%), IRAs (47%), stocks, bonds, and mutual funds (41%), and
pension plans (39%).
Gathering No Moss
According to our survey, many engineers as they reach the culmination of their careers are more interested in giving back than getting out (see Maxim Cofounder Takes His Skills And Goodwill To
Africa, p. 41). This is not particularly surprising. Engineers tend to
be individuals who want to build a better world. Theres no reason to
expect that feeling to fade when engineering professionals begin to
think seriously about retirement. Indeed, it seems to grow stronger.
Retirement Savings Goals Of Engineers
Current age
Retirement goal
Under 30
$1,602,198
30 to 34
$1,615,044
35 to 39
$1,654,545
40 to 44
$1,573,280
45 to 49
$1,456,818
50 to 54
$1,483,597
55 to 59
$1,336,919
60 and older
$1,256,152
Sources Of Income (Other Than Social Security) Engineers Are Using To Fund Their Retirement
13
401(k)
66%
55%
IRA
47%
Stocks/bonds/mutual funds
41%
Pension plan
39%
13%
Stock options
11%
E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
Average Salaries
By Level Of Education
13%
70 or older
21%
65 to 69
29%
60 to 64
13%
59 or younger
5%
16%
Total compensation
Doctoral degree
$111,656
$122,307
Master's degree
$103,781
$113,306
$100,303
$109,988
Bachelor's degree
$90,681
$98,860
Attended college
$78,054
$85,001
$70,606
$77,615
Associate's degree
High school or less
Average Salaries By Gender
Male
Female
$70,481
$76,618
Base salary
Total compensation
$95,790
$104,744
$79,615
$87,669
Base salary
Total compensation
60 or older
$96,819
$106,173
55 to 59
$106,595
$116,482
50 to 54
$101,808
$110,957
45 to 49
$100,664
$109,378
40 to 44
$88,655
$97,732
35 to 39
$86,686
$94,609
30 to 34
$72,238
$79,339
25 to 29
$62,963
$68,902
Under 25
$47,750
$53,208
Base salary
14
E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
The top 50
employers in
electronic
design
Companies that buckled down during 2009s collapse saw the positive results of their shrewd
strategies as the economy rebounded and profits rolled in in during 2010.
f 2009 was a year for weathering the storm symbolized by the fall
of Lehman Brothers back in the fall of 2008, then 2010 was a year
for taking advantage of sunnier skies, though typical engineers
may not have felt much improvement in their daily condition. However, many companies stayed faithful to the seven strategies we presented back in our 2010 list of the Top 50 Employers in Electronic
Design (see The Top 50 Employers In Electronic
Design at www.electronicdesign.com):
2009, we lost 5.7 million jobs, but at least 751,000 jobs were gained
in 2010. U.S. GDP decreased 1.7% annually in 2009, but it showed an
annual increase of 3.8% in 2010. These improvements may not look
substantial, but at a minimum, the negative trends have been reversed.
In 2010, the pool of 96 companies that we analyze collectively
showed employee growth of 1.5%, sales growth of almost 10%, and
pretax profit growth of 83%! While we are dealing
with a low base, this was a significant improvement vis a vis 2009s employee declines of 5.5%,
sales declines of 8.3%, and pretax profit declines
of 8.9%.
In 2009, companies did well to hold profit margins flat year over year and prevent debt to equity
ratios from worsening more than one point. In 2010,
companies knocked it out of the park, improving
profit margins by five points and debt to equity
ratios by nine points! Last but not least, R&D went
from almost a 4% decline in 2009 to almost a 3%
increase in 2010 (Table 2).
Another sign of optimism comes from our percentage of companies
reporting growth in key categories. In 2009, 19% of our company pool
reported increases in sales while only 9% reported increases in profits.
E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
1. The Chevrolet Cruze is one of GMs biggest hits, topping the charts as the best selling small car in the U.S. in May. Its also Chevrolets best selling car around the world,
with global sales of more than 250,000 in the first four months of 2011. The 2012 model will improve on 2011s fuel efficiency, as the Cruze Eco with automatic transmission will see 39 mpg on the highway.
and selling them under the Baojun, Buick, Cadillac, Chevrolet, GMC,
Daewoo, Holden, Opel, Isuzu, Vauxhall, Jiefang, FAW, and Wuling
brand names.
The company sells its cars and trucks to dealers for consumer retail
sales, as well as to fleet customers, including daily rental car companies,
commercial fleet customers, leasing companies, and governments. Its
major markets include China, the United States, Brazil, the United Kingdom, Germany, Canada, and Italy.
GMs OnStar subsidiary provides vehicle safety, security, and
information services. Meanwhile, GM provides automotive financing
services through its subsidiary, General Motors Financial Company
Inc., which purchases automobile finance contracts for new and used
vehicles purchased by consumers primarily from franchised and select
independent dealerships. Founded in 1908, GM is headquartered in
Detroit, Mich.
GM Motors Up 78 Slots
E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
of the major lease platforms in Canada. The early signs of this expansion are encouraging with GM Canada lease penetrations increasing
to 7% in April.
As GM and GMF become more closely integrated, GM new vehicles
as a percentage of GMFs originations and GMFs percentage of GM
subprime financing and leasing volume have increased significantly.
GMF posted strong credit performance for the first quarter with annualized net credit losses of 4%, down materially from the prior year.
In Europe, restructuring has focused on reducing costs, but equally
important is the retooling of the product line. The Opel Insignia, Meriva, and Corsa are just a few examples of the product renaissance, and
there are many more to come. In fact, by 2012, most of the European
product line will be less than three years old.
In China, the largest automotive market in the world, GM maintained
its number one position with a market share of 13.6%, and the future
looks bright with the introduction of the new Baojun brand, the continued strength of Buick, and the launch of 60 new and upgraded models
over the next five years. In addition, the expansion of Korea-built
Chevrolet products being sold in countries throughout the Asia-Pacific
region and in Europe is a significant contributor to revenue growth.
We welcome GM back to our Top 50, having emerged from government oversight in the second half of 2009. The last time GM was in our
survey was 2008, where it ranked 91st before the government began its
oversight, so it has moved up 78 ranks. While it has shown tremendous
improvement and is positioned to take advantage of anticipated global
industry growth, there is still work to be done.
GMs 2011 first quarter sales were up 15%, and operating profits
without any extraordinary items were up 13%. Products including the
Buick LaCrosse and Regal, the Chevrolet Equinox, the GMC Terrain,
and the new Chevrolet Cruze all contributed to this revenue growth. In
fact, the Chevrolet Cruze commanded a price that was $3000 higher
than the vehicle it replaced.
For the first quarter of 2011, global deliveries were 2.2 million units,
an increase of more than 220,000 units from the first quarter of 2010.
This increase is attributable to a 1.3 million-unit increase in industry
volume and a 0.4 percentage point increase in global market share to
11.5%. In April, North American market share returned to a strong
19.8%, despite managing customer sales incentives down to the lowest
levels yet for the new General Motors.
To help offset increases in commodity costs, GM implemented
price increases effective May 2. These increases included hot selling
products, including the Chevy Cruze and Equinox, Cadillac SRX,
GMC Terrain, and Buick LaCrosse. When combined with increases
implemented during the fourth quarter and earlier this year, average
prices increased 0.8%.
During the first quarter of 2011, GM continued to make progress in
strengthening the balance sheet by selling non-core assets and further
funding its U.S. pension liability. The crisis in Japan is not expected to
have a material impact on full-year results.
First-quarter growth was achieved largely on the strength of stronger
sales of fuel-efficient vehicles across the portfolio. GM is much better
positioned today to meet the demands of customers looking for fuelefficient vehicles, with no better example than selling 50,000 Cruzes in
the first quarter alone (Fig. 1).
There are more fuel-efficient vehicles to come, as GM introduces
the Chevrolet Sonic, the Chevrolet Malibu ECO, the Buick Verano,
and the Buick LaCrosse and Regal with eAssist over the coming
months and year.
GM Financial has also had a positive impact on the first quarter by
improving credit availability and terms to GM customers. The primary
objective of GMs automotive financing strategy is to provide certainty
of availability to customers all through the credit cycle and the business cycle as well as increased competition and transparency.
GM Financial has steadily increased its U.S. subprime financing
penetrations from 4% in the first quarter of 2010. Leasing programs
are now offered through GM Financial in 21 states through the end of
the quarter. U.S. leasing penetrations increased from 7.6% in the first
quarter of 2010 to 16.8% in the first quarter of 2011, but still below the
industry average excluding GM of 23%.
Total
company
line score
2010
rank
CATERPILLAR INC.
84
81
EMC CORP.
76
BROADCOM CORP.
75
74
APPLE INC.
74
70
QUALCOMM INC.
70
68
9
10
ALTERA CORP.
67
3M CO.
67
10
INTEL CORP.
66
12
65
13
64
14
INTERSIL CORP.
64
14
64
14
NETAPP INC.
63
17
61
18
XEROX CORP.
61
18
61
18
MEDTRONIC INC.
60
21
58
22
57
23
International Moves
HARRIS CORP.
67
21
Further improvement will come with the companys target of national coverage for the GM Financial lease program by this summer. To
expand availability of leasing into Canada, GMF in April acquired one
SAIC INC.
66
29
17
EATON CORP.
57
23
SANDISK CORP.
57
23
E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
over time. Yet GM is off to a strong start in making 2011 a solid improvement over 2010, and it needs to continue to build the momentum.
2010
rank
57
23
56
27
Company name
TERADYNE INC.
55
28
55
28
ADTRAN INC.
54
30
53
31
53
31
53
31
53
31
53
31
LSI CORP.
53
31
53
31
52
38
52
38
DANAHER CORP.
52
38
51
41
VISTEON CORP.
50
42
50
42
INGERSOLL-RAND PLC
50
42
SYNOPSYS INC.
50
42
48
46
48
46
MOOG INC.
48
46
48
46
SPX CORP.
47
50
47
50
47
50
Demand for auto parts is driven by new car sales, which are strongly
affected by interest rates, and by the replacement market. Company profitability depends partly on the difficulty of manufacturing products and
partly on demand volume, since many costs are fixed. Small companies
can compete successfully by focusing on a small number of products or
some highly technical ones.
The industry is capital-intensive, with an average annual revenue
per employee of more than $450,000. The structure of the industry
is complex, with most smaller companies (referred to as tier 2
and tier 3 suppliers) selling parts to larger suppliers (referred to
as tier 1 suppliers), which in turn sell component assemblies or
modules to car and truck assemblers such as GM and Ford, collectively called OEMs.
Principal competitors include Advics, Bosch, Continental-Teves,
JTEKT, and ZF in the chassis systems segment; Autoliv and Takata
in the occupant safety systems segment; Autoliv, Bosch, ContinentalTeves, and Nippondenso in the electronics segment; and Delphi,
Eaton, ITW, Kostal, Nifco, Raymond, Tokai Rika, and Valeo in the
automotive components segment.
Observations
TRW is our most improved company comparing 2010 to 2009, moving up 64 places in the rankings to number 18. The first quarter of 2011
continued to produce strong results with sales up 15% and operating
profits up about 24%. Operating profit before special items was $382
million, with a margin of 9.3%. This marked the highest level of operating profit and margin for any quarter in TRWs history.
Considering seasonality and the capital investments TRW is making
to support growth, the company still was able to generate record cash
18
E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
2. Caterpillar, known for its construction and mining equipment, took the top spot in our list of the Top 50 Employers in Electronic Design. The rebounding economy, with
an emphasis on infrastructure and new construction, drove this success as the company introduces new equipment like the CT660 Vocational Truck, suitable for mixing
concrete and hauling loads of all sizes.
flow levels and continued to reduce its debt and strengthen its balance
sheet. Vehicle production trends continue to be positive, too.
In North America, overall vehicle production was up 14% compared
with the prior quarter. On a sequential basis compared to the fourth
quarter of last year, production was up around 12%. This level of
production has been supported by the gradual increase in consumer
demand. For the quarter, the seasonally adjusted annual selling rate
averaged 13 million units, up from the mid-12 million range experienced in the fourth quarter of 2010.
In Europe, vehicle production was up about 8% compared with last
years quarter. On a sequential basis compared to the fourth quarter,
production was up around 4%. Improving customer demand inside
Europe, combined with strong consumer demand outside of Europe,
continues to support this level of production. In fact, in Germany and
France, TRW recorded 14% and 9% year-on-year increases in registration, respectively, during this first quarter, and these are definitely
positive signs as we move further into the year.
For Western Europe, first quarter production was up around 4% or
190,000 units compared to the fourth quarter of 2010. China and Brazil continue to be growth champions for TRW. For the quarter, TRW
sales outpaced industry production in both markets. Combined sales in
these two markets accounted for more than 12% of TRWs total first
quarter sales.
19
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Employee Growth
1.5%
Sales Growth
9.9%
83.2%
5.1 pts.
9.1 pts.
2.7%
2.9%
89%
Pretax Income
90%
Employee Growth
62%
R&D
67%
mining equipment, tunnel boring equipment, and related parts (Fig. 2).
It also manufactures diesel-electric locomotives and manufactures and
services rail-related products and logistics services for other companies.
The Power Systems business provides diesel, heavy fuel, and natural
gas reciprocating engines for Caterpillar machinery, electric power
generation systems, marine, petroleum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbinerelated services for oil and gas, as well as power generation applications. It also remanufactures Caterpillar engines, machines, and engine
components and offers remanufacturing services for other companies.
The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels. It also offers loans and
various forms of insurance to customers and dealers. And, it provides
financing for vehicles, power generation facilities, and marine vessels.
The company markets its products directly, as well as through its
distribution centers, dealers, and distributors. It was originally organized as Caterpillar Tractor Co. in 1925 in California. In 1986, the
company reorganized as Caterpillar Inc. in Delaware. Caterpillar Inc.
is headquartered in Peoria, Ill.
Last year, Caterpillar was number 62 on our list. This year, it inched
up 61 ranks to take the top slot. The company manufactures and sells
construction and mining equipment, diesel and natural gas engines,
industrial gas turbines, and diesel-electric locomotives worldwide. It
operates through two lines of businesses: Machinery and Power Systems, and Financial Products.
The Machinery business offers construction, mining, and forestry
machinery, including track and wheel tractors, track and wheel loaders,
pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks,
articulated trucks, paving products, skid steer loaders, underground
E l e c t r o n i c D e s i g n M a g a z i n e s 2 0 11 A n n u a l Sa l ar y S u r v e y R e p o r t / T o p 5 0 Em p l o y e r s
78
64
TERADYNE INC.
62
CATERPILLAR INC.
61
56
General Motors was compared 2010 to 2008, as it was not in our rankings in 2009 due to
government oversight.
Category
BROADCOM CORP.
QUALCOMM INC.
NATIONAL INSTRUMENTS CORP.
3M CO.
Communications
Test equipment
Industrial controls
ALTERA CORP.
INTEL CORP.
INTERSIL CORP.
Industrial controls