2016 National Compensation Matrix is Now Available

For those of you who use the National Compensation Matrix, you may be happy to hear that the new 2016 NCM is now available.
You can access it through the Resources page of our website, at www.aeclarity.com/Resources. The 2016 NCM should be used to evaluate the reasonableness of executive compensation amounts for 2015 indirect cost rates.
What may surprise you is that the compensation levels for many executive classifications have decreased from the 2015 NCM. Why would this happen, you might ask, in a period of growth and generally increasing compensation levels? The answer is that the NCM compensation levels are developed based on the results of national A/E industry compensation surveys. Those results, in turn, are driven by the A/E firms who choose to participate in the surveys. Decreasing compensation could be the result of a decrease in compensation levels in participating firms, or simply could reflect a different mix of firms participating in the most recent version of the surveys. If your firm uses the NCM and the results of the NCM matter to you, I would encourage you to choose one or more A/E industry executive compensation surveys and participate on an annual basis. I can’t overemphasize how important it is for your firm to participate in these surveys. Only by supporting the surveys can we continue to have a National Compensation Matrix.
For more information regarding the NCM or compensation issues, visit our website, view our recorded webinars, or contact us at dan@aeclarity.com .