Is My Compensation Fair? A Deep Dive into Pay Disparities
Working in the dynamic world of finance and Accounting comes with its own set of challenges and rewards. While climbing the corporate ladder, it’s natural to question whether your compensation is reflective of your skills, experience, and contributions. Here’s a personal glimpse into my journey and some insights I’ve gathered along the way.
My Professional Background
Currently, I hold the Assistant Vice President (AVP) title at a publicly traded bank located in the Midwest. With an extensive career spanning over seven years in this industry, complemented by two years in public Accounting, I’ve honed my skills and expertise significantly. I’m armed with the Certified Internal Auditor (CIA) and Certified Information Systems Auditor (CISA) credentials. My current compensation includes a salary of $110,000, accompanied by a performance-dependent bonus ranging from 7% to 10% and stock options.
Comparing Salaries: A Closer Look
Recently, I stumbled upon some interesting figures within my department. A senior colleague with less overall experience, and without the certifications that I possess, earns $100,000 annually. Furthermore, another colleague, who was recruited at my level and holds the same certifications but has more general experience, though without banking-specific Audit experience, is drawing $15,000 more than me.
Am I Being Underpaid?
Given these disparities, I can’t help but question if I’m being fairly compensated. I consistently put in 45-50 hours each week due to being understaffed, while noticing that others manage to wrap up their responsibilities in a standard 40-hour workweek without the added stress.
Understanding Our Hierarchical Structure
To provide some context, our department is organized as follows: the roles are structured as Auditor, Senior, AVP, and Chief Audit Executive (CAE). With this hierarchy, each title suggests its associated set of responsibilities and expected remuneration.
Assessing Your Worth
So, how do you determine if you’re being underpaid? It’s essential to evaluate your compensation against industry standards, peers with similar qualifications, and your contribution to the organization. Ask yourself:
- Does my salary align with industry standards for similar roles in my region?
- Am I leveraging my credentials and experience effectively?
- Is my workload and the skills I bring to the table mirrored in my compensation?
If your answers point toward inequality, it might be time to have a candid conversation with your superiors or consider seeking opportunities where your expertise is more aptly
One response
Thank you for providing detailed context about your situation—it’s crucial for assessing where you stand in terms of compensation. Based on the information you’ve shared, it does seem like there might be discrepancies in your pay relative to your experience and credentials, particularly considering your CIA (Certified Internal Auditor) and CISA (Certified Information Systems Auditor) certifications, which are valuable and often command higher salaries due to their specialized nature.
Industry and Regional Context
Firstly, it’s important to consider the typical pay scales for AVP roles in auditing within publicly traded banks, particularly in the Midwest. According to industry data, AVP positions at banks in the Midwest tend to have salaries ranging from $100,000 to $130,000, depending on various factors including the size of the bank, the specific responsibilities entailed, and the individual’s qualifications. Your base salary of $110,000 is within this range, but that doesn’t account for the additional time and stress from being short-staffed.
Comparison Analysis
You noted that a senior with less experience makes $100,000, and another individual in a comparable role makes $15,000 more than you. Pay discrepancies can often be attributed to various factors such as negotiation skills, timing of hires (as compensation packages can vary based on budget changes and market conditions), and internal equity adjustments.
Professional Development and Negotiation
Here’s some practical advice if you suspect you’re being underpaid:
Market Research: Conduct thorough research on salary benchmarks for your role in the banking industry, considering geographic and company size factors. Websites like Glassdoor, Payscale, and industry reports can provide helpful insights.
Leverage Certifications: Your CIA and CISA are strong negotiation points. Make sure during any compensation discussions that you highlight how these certifications contribute to your efficiency and effectiveness, particularly in niche auditing roles.
Performance Review: Document and discuss your contributions and any additional responsibilities you’ve taken due to being short-staffed during performance reviews. Quantifying your impact, such as improvements you’ve helped implement or efficiencies you’ve created, can strengthen your case.
Open Communication: It might be worthwhile to have an honest and constructive conversation with your manager or HR about your concerns. Present your case with data, emphasizing your contributions and why you believe your compensation should be revisited.
Consider Opportunities for Advancement: If these conversations don’t lead to adjustments, it could be beneficial to explore other career opportunities where your skills and experience might be better