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AIBU to ask you what you think I should earn?

(32 Posts)
questioningitall Fri 04-Nov-16 11:52:55

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 Fri 04-Nov-16 11:56:15

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

£80k.

Downthepubofcourse Fri 04-Nov-16 11:56:45

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 Fri 04-Nov-16 11:59:41

I'd say between 60-80k

Cocklodger Fri 04-Nov-16 12:03:28

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 Fri 04-Nov-16 12:05:36

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 Fri 04-Nov-16 12:13:19

60-80 dependent on location.

Do you have a bonus related to growth?

Secretspillernamechange Fri 04-Nov-16 12:29:49

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 Fri 04-Nov-16 12:38:53

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

icanteven Fri 04-Nov-16 12:40:38

£75 - £85k

icanteven Fri 04-Nov-16 12:41:24

What are you on?

Theoretician Fri 04-Nov-16 12:43:47

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 Fri 04-Nov-16 12:51:11

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 Fri 04-Nov-16 12:51:36

Also agree with auditor

ZoeTurtle Fri 04-Nov-16 12:52:50

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

ZoeTurtle Fri 04-Nov-16 12:55:22

£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 Fri 04-Nov-16 13:00:41

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 Fri 04-Nov-16 13:01:42

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

questioningitall Fri 04-Nov-16 13:02:28

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

mydietstartsmonday Fri 04-Nov-16 13:07:06

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

TheAntiBoop Fri 04-Nov-16 13:15:04

Depends on your area - is it niche etc. Do you have a broad client base or reliant on internalgrinne 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 Fri 04-Nov-16 13:25:14

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 Fri 04-Nov-16 13:27:14

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 Fri 04-Nov-16 13:29:40

I reckon £70kish

msrisotto Fri 04-Nov-16 13:35:39

So, are you feeling underpaid?

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