More brokers are finding ways to hire the important position of Technology Director or Vice President of Technology. However, many firms are still seeking outside-the-box ways to staff this position, including using independent contractors and a part-time person dedicated to technology.

 

Of our survey participants, 61 percent of them had a Technology Director/Vice President of Technology in 2014. For a majority of people in this position, any bonus incentives resulted from overall company performance. The numbers provided represent their total base, bonus and benefit compensation for the calendar year 2014.

Technology Director National
Average Total Compensation $103,926
Lowest Total Compensation $20,000
Highest Total Compensation $405,000
Base Salary as % of Average Total Compensation 80.07%
Bonus as % of

Average Total Compensation

10.00%
Benefits as %

Average Total Compensation

9.93%
Average Total Compensation as % of Company GCI 0.40%
Lowest Average Total Comp        as % of Company GCI 0.07%
Highest Average Total Comp       as % of Company GCI 1.44%
Average Total Comp as % of Company Gross Margin 1.88%
Lowest Avg Total Comp as % of Company Gross Margin 0.32%
Highest Avg Total Comp as % of Company Gross Margin 8.50%

As mentioned previously, only 61 percent of respondents had a Technology Director/Vice President of Technology in 2014. In terms of the different levels of brokerages, 45 percent of Level I brokerages had this position filled. This is compared to 65 percent in Level II brokerages and 74 percent in Level III brokerages. We still see a steep increase in overall income between the different levels of firms. There is a 30 percent increase between Level I and Level II firms, and a 70 percent increase between Level II and Level III firms.

Technology Director National Level I Firms

(<140 agents)

Level II Firms

(140-450 agents)

Level III Firms

(>450 agents)

Average Total Compensation $103,926 $67,133 $87,221 $148,105
Lowest Total Compensation $20,000 $28,893 $20,000 $57,500
Highest Total Compensation $405,000 $170,000 $219,199 $405,000
Base Salary as % of Average Total Compensation 80.07% 80.43% 84.15% 77.37%
Bonus as % of

Average Total Compensation

10.00% 7.34% 2.97% 15.31%
Benefits as %

Average Total Compensation

9.93% 12.23% 12.88% 7.32%
Average Total Compensation as % of Company GCI 0.40% 0.73% 0.36% 0.20%
Lowest Average Total Comp        as % of Company GCI 0.07% 0.30% 0.08% 0.07%
Highest Average Total Comp       as % of Company GCI 1.44% 1.44% 0.69% 0.49%
Average Total Comp as % of Company Gross Margin 1.88% 3.88% 1.60% 0.75%
Lowest Avg. Total Comp as % of Company Gross Margin 0.32% 1.14% 0.66% 0.32%
Highest Avg. Total Comp as % of Company Gross Margin 8.50% 8.50% 2.57% 1.90%

 

 

Again, the Southeast region stands out in average total compensation for this position in a brokerage. Correspondingly, the Southeast was also the region with the highest percentage of Technology Directors/Vice Presidents of Technology with base salaries over $100,000. In the Northeast, 40 percent of Technology Directors/Vice Presidents of Technology had base salaries over $100,000, compared to 22 percent in the Midwest, 22 percent in the West and 43 percent in the Southeast.

 

Interested in finding out other average salaries for brokerage positions? Order the latest REAL Trends Brokerage Compensation Report.