A managing director serves as the chief executive of a company, division or department. This position has responsibility for managing the personnel, resources and expenditures of the company or division. According to PayScale, the average salary of a managing director depends on a variety of factors including company size, industry, experience, location and gender.
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The size of the company or division directly relates to the average salary of a managing director because it indicates the level of experience required. Generally speaking, the larger the company in terms of sales, employees and locations, the higher the salary will be. According to PayScale, managing directors at companies with sales under £325,000 can expect to earn an average salary of £66,014. At companies with sales ranging from £325,650 to £6.4 million, managing directors earn an average of £102,860. At companies with sales of £6 million or more, they will earn an average of £146,801 with salaries rising to £195,000 and above.
According to PayScale, the average salary of a managing director in information technology and software is £117,120. Managing directors in health care and health care services earn an average of £103,504 and those in manufacturing and distribution can expect an average salary of £109,678. Managing directors in the financial sector have the widest range of salaries from £63,885 to £162,115 with an average of £113,000.
Years of management experience is an important factor in determining the average salary of a managing director. According to PayScale, a managing director with zero to four years of previous experience will earn an average of £70,277. For those with five to nine years, the average is £84,927. For 10 to 19 years, the average is £104,310. Managing directors with the most experience, from 20 years and above, earn an average annual salary of £117,464.
PayScale reports that the average salary of a managing director varies by city. The highest is in New York City where the average salary is £143,886. On the opposite coast, in Los Angeles, managing directors earn an average of £106,251. The median salaries in the middle of the country are very similar with an average of £116,160 in Chicago and an average of £116,276 in Houston.
On average, men still earn more than woman as managing directors. According to PayScale, men earn an average of £108,907 and women earn an average of £69,992.
Like other positions at the highest level of corporate management, managing directors' annual bonus can augment their average salary significantly. According to PayScale, managing directors with up to four years of experience earn bonuses that average £10,167. Those with five to nine years earn bonuses that average £13,385 and those with 10 to 19 years receive an average of £19,713 on top of their annual salary. For managing directors with 20 years of experience or more, the average bonus is £29,032.