AIBU to ask you what you think I should earn?

[questioningitall]

NC as potentially identifying. I'm the MD of small PR agency. Owned by a big company. I've worked my way up over 15 years so aware I won't earn as much as someone who's switched employer.

However, I am putting my budget together for next year and just think I am potentially being taken advantage of.

We turn over around £1.7 million in fees and generate profits of around £600k. I've grown the business by 25% this year (and 29% the year before).

What would you think I would earn?

[StillMaidOfStars]

Zero insight into this field, so a random guess from me.

£80k.

[Downthepubofcourse]

Where are you? London vs North of England is a difference! What PR are you in to? What does the opposition pay? How big is "small" - could be just you or up to 500 employees and still be defined as a small business

Not just as simple as asking how much!

[TheNaze73]

I'd say between 60-80k

[Cocklodger]

Between 60k and 100k dependent on location, company size (As someone says above could be just you and a few others or up to 500 employees) and your exact skills. Do you get a bonus, too?
I'd put my feelers out a bit and see what similar positions are paying. If its a great deal more ask for a payrise

[2014newme]

Turnover of £1.7m is a small business. I was running a business that size when I was 23.
£65-85k
I would be asking for a bonus linked to growth targets.

[idontlikealdi]

60-80 dependent on location.

Do you have a bonus related to growth?

[Secretspillernamechange]

Auditor here - I see directors' emoluments for a lot of businesses. Although you're small, it wouldn't be unheard of for the MD to be making £100k, particularly if you're the driving force and there aren't many staff. If you're in London they're taking the piss if you're getting less than £75k.

Agree - you need a bonus or a staff incentive share scheme, sounds like you're doing a great job.

[lljkk]

45-60k sounds right to me, 5-10k more if in/near London.

[icanteven]

£75 - £85k

[icanteven]

What are you on?

[Theoretician]

I don't think I know the answer, but at the same time I find the figures being mentioned fairly unimpressive. I know three people in three very different jobs who earn 75K-100K, in London, none of them manage anyone else let alone run a proper small business.

[wasonthelist]

Theoretician I tend to agree - I was making 100k plus as a niche IT consultant back in the day - now on way less in a permie job (75k) but still not managing anyone etc. Not really a guide but I'd want 100K plus (maybe a package including bonus etc) at least for OPs role.

[wasonthelist]

Also agree with auditor

[ZoeTurtle]

Depends very much on geography, as others have said, but I'd think £50-70k.

[ZoeTurtle]

£1.7m is a small business though, and last year it was only £1.2m-ish. That could mean around 10 staff members. Directing a company with 10 staff is unlikely to get you £100k.

[sirfredfredgeorge]

worked my way up over 15 years so aware I won't earn as much as someone who's switched employer

You need to lose this mindset - particularly if you put it into recruiting (ie are willing to pay someone who switches to you more than you would an existing employee)!

There's lots of reasons you should be paid more than someone switching into the role (the biggest being the absence of any risk of you being not able to do the job)

There's also lots of reasons why you could be paid less (fewer contacts, no ideas due to entrenchment etc.)

Ideally you should be paid an appropriate return of your skills to the business, which includes how easy you would be to replace of couse. In such a business as yours appears to be, that is commonly done with a good bonus structure, but of course they're tricky too as they always come with opportunities for gaming them not in the best interests of the business.

So it's unique, negotiate, the starting point is what you think you can get by moving, or indeed your genuine value to the business if you cannot easily be replaced.

[questioningitall]

yes more info would be helpful! In central london. 15 staff.

[questioningitall]

and yes, bonus linked to achieving 110% of very ambitious annual growth.

[mydietstartsmonday]

In London I would say £100,000 + basic plus bonus + equity

[TheAntiBoop]

Depends on your area - is it niche etc. Do you have a broad client base or reliant on internal:one client?

Benefits you get and what your exact role is. MD can perform very different roles depending on the group they are part of

what do comparable jobs in the market at the moment offer?

[questioningitall]

Yes pretty niche, broad client base but very fast moving market so lots of bus dev as well as marketing. I run the business on every level from full P&L finances to staffing and also offering expertise in our specialised field. Its a hands on role - I line manage 4, responsible for strategy for us but also provide consultancy to clients and speak at events as expert in my field. I also report into board level of the owning company.

[NikaKaKa]

I worked in HR for a big media company made up of 10 agencies in London and MD salaries for each agency varied but were around £100,000 and up depending on the size of the agency. The salaries of MDs were also dependant on how the main company did overall as well....if that makes sense.

[Queenbean]

I reckon £70kish

[msrisotto]

So, are you feeling underpaid?

[questioningitall]

really interesting responses thanks all. I'm on £80k with 30% bonus (but as stated the business has to achieve 110% of growth targets for me to get anything).

I was thinking of going for a rise to £90k and increase in bonus to 40%. Doesn't sound like I'm too far out from what you've all said so thank you!

Big girl pants on!