Report finds architect compensation levels on rise

Compensation levels at architecture firms have increased 5.5 percent annually since 1999, outpacing a 3.9 percent annual compensation increase for all private sector occupations according to the "2002 American Institute of Architects Compensation Report" released Oct. 11.

Trends in compensation at U.S. architecture firms track the general health of the construction industry. An upturn in construction activity means more work for architecture firms, a need for growth in architecture staff, and generally improved profitability, producing increases in compensation.

Despite the slowdown in the economy, the construction sector has generally remained healthy. Low rates of inflation have generated favorable financing costs for construction activities, and in turn, healthy levels of construction activity.

Residential construction, a large segment of the economy that normally falls during even a mild economic downturn, has continued to expand seeing a 2.2 percent increase in housing starts in 2001.

In addition, architecture firms remain highly involved in merger and acquisition activity, often leading to greater productivity and higher compensation for employees.

Other key findings of the survey include:

Average compensation for architecture positions as of early 2002 was 15 percent above what it would be if merely keeping pace with inflation since 1990.

Compensation of architecture staff is 15 percent higher at larger firms than at smaller firms and approximately 5 percent to 10 percent higher than at mid-size firms.

On average, compensation at firms located in metropolitan areas is about 10 percent higher than for comparable positions at firms in nonmetropolitan areas in the same region of the country.

Compensation for principals and partners at architecture firms is significantly higher at larger firms. On average, these positions command compensation levels about 50 percent higher at firms with 50 or more employees compared to firms with fewer than 50 employees.

For registered and non-registered graduate architecture staff, an average of 10 percent of compensation came from non-guaranteed bonuses, profit sharing, overtime, and other incentive compensation. For architecture interns and students, an average of 7 percent of compensation came from these non-guaranteed sources. For principals and partners, more than 25 percent of compensation on average was not guaranteed.

The 2002 AIA Compensation Report was researched and compiled by the AIA's economics and market research department. Average compensation figures are provided for registered architects, interns and other graduates of architecture programs. Compensation figures also include salary, bonuses, profit sharing and other incentive compensation.

The complete 2002 AIA Compensation Report including an executive summary, detailed benefits information, position descriptions, and tables for most regions, states and metro areas can be ordered on the AIA Web site at www.aia.org.

Since 1857, the AIA has represented the professional interests of America's architects. AIA's nearly 70,000 members adhere to a code of ethics and professional conduct that assures the client, the public, and colleagues of an AIA-member architect's dedication to the highest standards in professional practice.