The last 18 months have been difficult ones for the publishing industry, and that is reflected in the litany of negative numbers uncovered in PW’s annual salary survey. While there are many statistics to chose from, three stand out as a testament to the issues confronting industry members.

As the chart shows, 35% of workers did not receive any raise last year, while another 21% received a raise of less than 3%. That combination was a major factor in limiting the average raise in 2008 to just 3.3%, the lowest in more than five years. The percentage of industry members who didn’t receive a raise in 2008 seems likely to increase in 2009 as 70% of respondents to the survey—e-mailed this spring—reported that their company had instituted a salary freeze, with 63% saying there was also a hiring freeze. Sixty-one percent of industry members said their companies have had layoffs. Only 10% of publishers had not taken any action to control personnel costs in the 18-month period. Given the drumbeat of bad news, it is not surprising that publishing employees have never felt less secure about their jobs. Only 13% of workers say they feel very secure in their jobs, an all-time low, while 11% feel very insecure, an all-time high. Editorial employees had the highest rate of insecurity, with 38% saying they are worried about their jobs.

The uncertain transition from print to digital resulted in 42% of workers citing industry/company instability as a major cause of job dissatisfaction; in 2007 only 32% cited instability as a major reason behind their unhappiness with their jobs. Low pay remained the top reason for dissatisfaction, although the percentage of workers who mentioned low salary fell last year compared to 2007.

In addition to receiving small or no raises in 2008, the number of employees who received bonuses in 2008 fell from 53% to 45%. The average bonus also declined in most areas, with the one exception being in management, where the median bonus increased by $5,000.

Payroll expense is not the only area where publishers have cut back: 66% of industry members reported that their companies have reduced marketing budgets, and 63% have cut travel and entertainment expenses. A number of industry members also mentioned that their companies have reduced attendance at trade shows, and others are moving more titles to print-on-demand or digital. All but 12% of publishers instituted some form of cost-cutting measures, with 94% of religion publishers taking some action.

The weak economy is helping publishers push green initiatives in some areas. The use of teleconferencing skyrocketed in 2008, with 63% of employees saying their companies have increased use of teleconferencing to reduce travel costs compared to 46% in 2007. Publishers are also cutting their use of paper, with 41% of companies using electronic galleys to distribute manuscripts in-house and 39% using electronic catalogues. The greatest use of e-galleys is at trade houses, where 57% reported moving to e-galleys. Religion publishers are the most aggressive in moving to e-catalogues, with 51% moving to that format. The use of hybrid cars for the sales force has gained little traction, with only 4% of publishers taking that step, down from 5% in 2007. And while many industry members talk about the need to reduce returns, only 3% said they have taken any steps, while 8% reported that their companies plan to change their returns policy.

Despite the unhappiness and unease among many, only 26% of industry members expect to leave their jobs in the next two years, down from 30% last year, and only 11% expect to change careers, the same percentage as last year.

In terms of trends in pay scale, men still outearned women by a lot (although the median salary gap of $30,600 was smaller than the 2007 spread of $39,080), and management is still the field where the biggest salaries are. One somewhat different finding is that the Mid-Atlantic states are not necessarily the place to find the highest salaries. The only field where the Mid-Atlantic region had the highest pay was in operations, while the West took the top spot in editorial, sales & marketing and management. One possible explanation is that the recent layoffs at East Coast publishers have taken a toll on more experienced workers. The average length of time in the publishing business of respondents working in the Mid-Atlantic was 11.1 years in the most recent survey, compared to 11.9 years in the previous, while the length of time in New England was cut from an average of 13.6 years to 12.3 years. In the West, the average time in publishing increased to 13.0 years from 12.3 years. Certainly experience brings higher costs, as this chart shows.

All results of the survey are based on 1,408 responses to an online questionnaire sent to PW subscribers. You can also find this story, with graphics, beginning on page 25 of this week's magazine.

Pay Raises:

Average Annual Raise:

Over 10% 9%
5.0—9.9% 10%
3.0—4.9% 25%
0.1—2.9% 21%
0% 35%
4.9% 5.3% 4.5% 4.2% 3.3%
2004 2005 2006 2007 2008


How Secure Employees Feel About Their Jobs:

2008 2007 2006 2005 2004
Very Secure 13% 21% 22% 25% 18%
Somewhat Secure 53 52 55 51 56
Somewhat Insecure 23 19 17 18 21
Very Insecure 11 8 6 6 6


Number of Employees Who Would Recommend Publishing As a Career:

2008 2007 2006 2005 2004
No 25% 21% 18% 19% 14%
Yes 75 79 82 81 86


Female Compensation Vs. Male Compensation:

Women avg. pay $66,000
Men avg. pay $96,600


Actions Taken to Control Payroll
Salary Freeze 70%
Hiring Freeze 63%
Layoffs 61%
Suspension of 401(k) Contributions 17%
Ending traditional pension plans 12%
Actions Taken To Cut Other Expenses
Cut marketing budgets 66%
Cut T&E 63%
Cut lists 34%


Selected Executive Salaries*

Salary Bonus Incentive Total
Barnes & Noble
Stephen Riggio, CEO $800,000 0 1,961,507 $2,761,507
Mitchell Klipper, COO 800,000 0 1,557,611 2,357,611
Base salaries of all top execs, including Steve Riggio and Mitchell Klipper, were frozen in 2008 and again in 2009. Incentive compensation declined for Riggio and Klipper in 2008, although the cash bonuses for both increased by $200,000 to $900,000.
Books-A-Million
Clyde Anderson, Chmn., CEO $341,000 0 $11,000 $352,000
Sandy Cochran, CEO 472,000 0 0 472,000
The base salary for Clyde Anderson rose 1.8% last year, while Sandy Cochran’s salary rose 3.7%. Total compensation declined, however, due to a large drop in incentive awards. Cochran left BAM in March 2009.
Borders Group
Mark Bierley, EVP, CFO $278,269 $124,200 $164,862 $567,331
Dan Smith, EVP, CAO 338,365 120,000 281,166 739,531
Beginning with Ron Marshall’s appointment as CEO in January 2009, the Borders executive team was overhauled, with severance payments to departing execs and retention bonuses to others. Mark Bierley’s total compensation included a $159,000 retention bonus, while Dan Smith received a retention bonus of $272,000 (included under “Incentive” above, but technically “Other”). Severance for former CEO George Jones totaled $2.3 million and for former CFO Ed Wilhelm $1.5 million. Ken Armstrong, former exec v-p/U.S. Stores, and Rob Gruen, former exec v-p/merchandising & marketing, received severance of $654,000 and $873,000, respectively.
Educational Development Corp.
Randall White, Chmn., CEO, Pres. $150,000 $22,000 0 $172,000
Randall White’s salary and bonus stayed even in the fiscal year ended February 28, 2009, compared to fiscal 2008.
Pearson
John Makinson, Chmn., Penguin £525,000 £500,000 0 £1,240,000
Will Ethridge, Chief Exec., North America Education 361,000 810,000 0 1,171,000
Total compensation for John Makinson fell 14% in 2008 due to a small decline in base salary and a larger drop in incentives. Part of the bonus for Will Ethridge, listed for the first time, was due to his efforts in the Google Book settlement plus oversight of the Pearson content management program.
Scholastic
Richard Robinson, Chmn., CEO, Pres. $870,000 0 $610,088 $1,480,088
Margery Mayer, EVP, Pres., Education 618,000 0 207,594 825,594
Judy Newman, EVP, Pres., Book Clubs 587,100 0 212,714 799,814
Dick Robinson’s base salary remained at $870,000 in the fiscal year ended May 31, 2008, but incentive compensation was $610,088 compared to zero in fiscal 2007. The majority of the increase in Margery Mayer’s total compensation was due to higher incentive awards. Fiscal 2008 was the first year Judy Newman appeared in the Scholastic proxy statement.
John Wiley
Will Pesce, Pres., CEO $924,167 $584,374 $1,271,016 $2,779,557
Stephen Kippur, EVP, Pres. Prof/Trade 464,583 171,500 173,736 809,819
Will Pesce received increases in salary and incentive pay in the fiscal year ended April 30, 2008. Stephen Kippur had slight increases in salary and bonus, but incentive compensation declined by 60%.
* Compensation excludes long-term incentive plans, which usually take the form of stock options and awards.


Number of Employees Receiving Bonuses:

Percentage Median Bonus
Editorial 34% $2,500
Sales/Marketing 45% $6,000
Management 43% $15,000
Operations 39% $2,750


How Companies Increased Their Use of Digital Technology to Be More Green:

Increasing use of teleconferencing 63%
Building initiatives 56%
Printing books on recycled paper 52%
Using e-readers to distribute galleys in-house 41%
Moving to electronic catalogs 39%


Biggest Complaint from Employees:

Low salary 53%
Company/industry instability 42%
Increased workload 42%
Lack of advancement 42%
Lack of recognition 35%
Problems with management 27%
Unfulfilling work 25%


How Satisfied Employees Are with Their Jobs:

2008 2007 2006 2005 2004
Satisfied with job 50% 52% 49% 50% 56%
Unsatisfied with job 50 48 51 50 44


Median Salary By Region:

E Editorial
S Sales & Marketing
West
E $59,000
S $70,000
Midwest
E $47,000
S $55,000
South
E $56,000
S $56,000
New England
E $52,000
S $59,000
Mid-Atlantic
E $50,250
S $57,500
M Management
O Operations
West
M $149,000
O $56,000
Midwest
M $85,000
O $46,500
South
M $107,000
O $49,900
New England
M $110,000
O $53,000
Mid-Atlantic
M $135,500
O $62,000


Median Compensation Based on Years Experience:

Less than 3 3 to 6 7 to 10 Over 10
Editorial $32,000 $40,000 $54,500 $80,250
Sales/Marketing 35,000 45,000 60,000 95,000
Management 93,250 77,625 94,500 132,000
Operations 37,750 42,750 60,000 74,500


Median Compensation By Position and Revenue:

Total Under $10 Million $10 million—$99.9 million $100 million—$499.9 million $500 million +
NET Editorial $50,625 $48,000 $53,500 $55,000 $59,750
Editorial Management 76,000 62,000 76,000 94,000 102,500
Editor/Associate Editor 45,000 42,500 44,200 45,650 50,500
Entry-level Editor 32,625 32,000 35,250 31,250 36,000
NET Sales/Marketing 59,000 48,500 61,500 65,000 87,000
Sales Management/Publisher 110,000 77,500 110,000 140,000 139,000
Sales Rep/Account Manager 67,750 47,000 60,500 65,000 85,450
Marketing/Advertising/Publicity Management 51,100 43,350 52,250 57,500 62,000
Marketing/Sales Support 35,000 33,612 33,100 34,625 43,125
NET Management 120,000 98,000 143,500 220,000 133,500
Senior Management (Pres./CEO/Owner) 100,000 96,000 120,000 410,000 416,750
Executive Vice President 134,500 109,914 155,000 263,500 159,500
NET Operations 54,000 49,000 64,076 56,063 60,000
Operations Management 54,720 43,000 66,000 53,000 66,850
NET Rights 52,500 40,800 63,000 72,000 59,950