PSMJ Reports That More Than Half of A/E Industry Firms Are Without an Ownership Transition Plan

PSMJ’s Brand New 2011 A/E Bonus & Benefits survey reveals only 40% have plans

Newton, MA – With competing day-to-day priorities and economic conditions that aren’t conducive to much long-term visibility, one would expect that a number of ownership plans are getting delayed or stretched out over long periods than originally anticipated. However, it seems that many A/E firm leaders are simply operating without this plan that is critical for long-term business health. The 2011 A/E Bonus & Benefits Survey from PSMJ Resources, Inc. shows that only 40% of surveyed firms have an internal ownership plan in-place.

“The demographics of the A/E industry, and the economy as a whole, point to a number of firms facing significant share redemption obligations in coming years.” states Frank Stasiowski, FAIA President and CEO of PSMJ. “If firm leaders aren’t planning for these redemptions, they are going to be reacting to them. That sort of strategy can leave the firm exposed to undesirable consequences such as a distressed sale or firm closure.”

PSMJ’s survey revealed that the smallest firms (those with up to 20 employees) are the least likely to have an internal ownership transition plan. Only 21% of the respondents surveyed in this subset indicated that their firm has an internal ownership transition plan.

The 2011 A/E Bonus & Benefits Survey from PSMJ is a comprehensive look at incentive compensation and other perquisites in the A/E industry. Readers can learn which benefits are "must haves" in today's turbulent economic climate, and which ones do little more than drain profits. Specific areas of data and analysis include:

• Varieties of cash and non-cash bonus programs
• Factors to consider when you determine incentive payments
• Bonus payments as a percentage of salaries and gross revenues
• Vacation leave, sick leave, retirement plans, group insurance and all-NEW data on firm relocation programs
• Staff turnover data, including turnover rates and reasons why employees leave

The 2011 A/E Bonus & Benefits Survey will be available for delivery on March 14, 2011 and can be ordered by visiting www.psmj.com.