Business development director salary: Business Development Director Salary | Salary.com

Director Of Sales & Business Development Salary (December 2022)

Director Of Sales & Business Development average salary by State

Rank	State	Avg. Salary	Hourly Rate	Job Count
1	Oregon	$115,254	$55.41	630
2	North Dakota	$106,526	$51.21	189
3	Vermont	$113,182	$54.41	92
4	Michigan	$100,000	$48.08	1,937
5	Pennsylvania	$105,830	$50.88	2,123
6	New Jersey	$113,810	$54.72	948
7	Washington	$113,957	$54.79	724
8	Minnesota	$96,809	$46.54	2,120
9	Maine	$112,788	$54.23	93
10	Ohio	$96,727	$46. 50	2,512
11	Montana	$95,358	$45.85	362
12	Virginia	$110,149	$52.96	1,033
13	District of Columbia	$108,636	$52.23	411
14	Wisconsin	$96,440	$46.37	1,404
15	Massachusetts	$108,160	$52.00	1,207
16	Connecticut	$107,512	$51.69	322
17	Rhode Island	$100,855	$48.49	156
18	New York	$106,025	$50.97	2,137
19	Maryland	$110,124	$52.94	546
20	Nevada	$89,400	$42.98	621
21	West Virginia	$92,368	$44.41	288
22	Arizona	$93,435	$44. 92	1,155
23	Missouri	$89,393	$42.98	1,419
24	South Dakota	$84,126	$40.45	275
25	Delaware	$98,583	$47.40	98
26	Iowa	$80,745	$38.82	1,225
27	New Hampshire	$96,113	$46.21	153
28	California	$98,160	$47.19	4,096
29	Wyoming	$82,244	$39.54	157
30	Indiana	$84,403	$40.58	1,438
31	Nebraska	$80,034	$38.48	602
32	Kentucky	$82,704	$39.76	855
33	Idaho	$90,133	$43.33	151
34	New Mexico	$77,939	$37.47	508
35	North Carolina	$87,754	$42. 19	940
36	Illinois	$86,062	$41.38	1,628
37	Tennessee	$76,786	$36.92	1,387
38	Arkansas	$66,127	$31.79	1,126
39	Kansas	$70,227	$33.76	795
40	Alaska	$75,376	$36.24	238
41	Colorado	$88,680	$42.63	584
42	Mississippi	$66,934	$32.18	650
43	Alabama	$67,001	$32.21	1,235
44	Hawaii	$79,273	$38.11	150
45	Oklahoma	$62,013	$29.81	954
46	Louisiana	$60,910	$29.28	1,050
47	South Carolina	$67,863	$32.63	856
48	Utah	$77,366	$37. 20	357
49	Florida	$67,612	$32.51	2,762
50	Georgia	$65,623	$31.55	1,892
51	Texas	$63,998	$30.77	4,536

Senior Director Of Business Development Salary (December 2022)

Senior Director Of Business Development average salary by State

Rank	State	Avg. Salary	Hourly Rate	Job Count
1	Michigan	$152,309	$73.23	1,917
2	Utah	$163,737	$78.72	638
3	Washington	$171,440	$82.42	1,148
4	Wisconsin	$147,607	$70.96	1,442
5	Rhode Island	$149,982	$72.11	296
6	Alaska	$152,451	$73. 29	245
7	Arizona	$152,156	$73.15	1,254
8	California	$164,300	$78.99	6,910
9	District of Columbia	$160,546	$77.19	593
10	Oregon	$154,761	$74.40	940
11	Nevada	$143,481	$68.98	632
12	Connecticut	$162,392	$78.07	534
13	Texas	$147,558	$70.94	4,732
14	Tennessee	$142,284	$68.41	1,423
15	Idaho	$149,380	$71.82	257
16	Virginia	$154,757	$74.40	1,608
17	Pennsylvania	$143,238	$68.86	2,510
18	New Mexico	$140,001	$67.31	547
19	Maryland	$160,694	$77. 26	797
20	Massachusetts	$148,490	$71.39	2,167
21	Montana	$137,552	$66.13	397
22	New Jersey	$149,122	$71.69	1,801
23	Ohio	$134,848	$64.83	2,583
24	South Carolina	$142,022	$68.28	849
25	Arkansas	$128,668	$61.86	1,083
26	South Dakota	$128,542	$61.80	441
27	Florida	$142,288	$68.41	2,954
28	New York	$143,569	$69.02	3,273
29	Minnesota	$133,343	$64.11	2,253
30	West Virginia	$133,417	$64.14	293
31	Maine	$139,837	$67.23	154
32	Nebraska	$128,806	$61. 93	638
33	Vermont	$137,058	$65.89	177
34	Missouri	$132,359	$63.63	1,444
35	Colorado	$144,945	$69.69	718
36	Mississippi	$126,895	$61.01	623
37	New Hampshire	$137,962	$66.33	257
38	Iowa	$125,076	$60.13	1,179
39	Kentucky	$126,410	$60.77	900
40	Oklahoma	$124,722	$59.96	927
41	Delaware	$139,319	$66.98	158
42	Indiana	$127,035	$61.07	1,413
43	Georgia	$131,612	$63.27	2,072
44	Kansas	$124,106	$59.67	802
45	Alabama	$122,093	$58. 70	1,183
46	North Carolina	$129,622	$62.32	1,422
47	Illinois	$131,059	$63.01	2,373
48	Louisiana	$119,085	$57.25	991
49	Wyoming	$121,551	$58.44	154
50	Hawaii	$128,134	$61.60	159
51	North Dakota	$115,086	$55.33	196

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To say goodbye or not to the CEO? Case Solutions

During a business systematization project, a salaried CEO wanted a higher pay for his work. Do you agree to its terms? Community Members Executive.ru proposed solutions.

The salaried general manager of a law firm demanded a significant increase in wages in order to work in the new conditions. Although his salary is already higher than the average market.

Question:

Should the CEO be fired if the business under his management is growing?

This case was offered to community members by Mikhail Mikhailov .

Permanent authors and readers took part in the competition for the best solution Executive.ru : Mikhail Karavaev, Yuri Zavalny, Polina Zhuravleva, Viktor Klimkin, Anton Zvyagin, Alexander Chen, Evgeny Trufanov, Pavel Gamankov, Ivan Selunsky, Natalia Galaktionova, Maxim Denisov, Alexei Drozdov, Tatiana Mokeeva, Natalia Chekhlatova .

According to the case author, Polina’s answer is the most accurate and correct. It is she who will receive a prize from Executive.ru – a book on management.

Polina Zhuravleva’s winning solution

Fire her as soon as possible. Why?
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Initially, in the situation, there is distrust of the owners in relation to the CEO (invitation of an external consultant, complaints about the weak manageability of the CEO, incomprehensibility of his contribution to the development of the company). That is, signs of an already existing hidden, perhaps even unconscious, but conflict. The demand for an increase in salary is an escalation of this conflict on the part of the gender. Meeting the requirements of the State Duma, even in relation to any specific KPI, will not help solve the initial problems of the owners, but will only exacerbate them.
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Arguments:

1. The requirement of the State Duma to increase remuneration is in conflict with the desire of the owners to carry out structural changes with the condition of maintaining profitability (at least – the current profit rate ). A significant increase in remuneration to the CEO, even when linked to an increase in income, cannot but affect the reduction of this norm. Accordingly, the CEO does not share the target objectives of the owners. Increasing the salary of the director works for the goals of the manager to the detriment of the goals of the owners. Initial mistrust will grow.
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2. Business faces the challenge of transformation, and this requires different managerial competencies than maintaining and improving the operational efficiency of a stable structure. The acquisition of new competencies carries both an additional burden (time, money, effort) and a significant risk (it is not clear how new competencies will “take root”). Accordingly, in this case, the demand for a salary increase is internally justified by the CEO, but the owners have a choice – to pay for the acquisition of new competencies to existing managers or to find a candidate on the market who already has the competencies necessary to carry out structural changes. There are no reasonable arguments in favor of retaining an incumbent manager.
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3. All the negative consequences of changing the gender ultimately come down to an increase in the time for reforms. There are several ways out of this: one of the founders can temporarily take over the functions of the CEO (they are in the subject of the project and have the necessary influence to make changes), you can suspend the change implementation project until a new candidate is selected, you can pay headhunters for an accelerated selection of the best candidate.

All these actions one-time cause a lot of inconvenience and additional costs of resources, but they allow you to solve the problem for a sufficiently long period of time. While the satisfaction of the requirements for an increase in salary minimizes additional costs and inconveniences at the moment, it does not actually solve, but only exacerbates the problem.
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Mikhail Karavaev’s decision

The question is how much the director influences the process now, is he important for profit, and how replaceable or irreplaceable is he now.

His advantage is that he more or less controls the process and more or less knows the layouts. Your advantage is that for the same money or a little more you will find a replacement for him without difficulty (right?). This is what must come from.

I would first try to “digitize” everything – to understand exactly how much money the director brought in and how this is connected with his participation. Since there are few employees, I think it is not very difficult to track this. You can talk to trusted employees, see how the general works, how he behaves with employees, listen to his phone calls, see what he does on his work computer during working hours. Talk to key customers with whom the general cooperates. You can play a case – simulate a situation (for this it is better to use good friends), which the gender himself will have to resolve. As a result, there should be an understanding of what is happening and what is the role of the general in this. Apparently, at the moment this is not the case, and it is not clear whether there is any benefit from the gender.
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Next you need to count. If it is useful, then it is profitable to cooperate with it, if not, then it is not. But here it is necessary to consider not only the benefits, but also the possible costs of his dismissal and the subsequent search for a replacement.

If there is no definite certainty yet (however, even if there is, it is better to play it safe), it is better to ask the director himself to answer the question of why it is necessary to do as he requires. Let him tell in detail what he did, what results he brought (what positive changes occurred precisely because of his decisions, and not in general during his reign). Let him justify why right now he needs to raise his salary by that much. Give competing organizations as an example, voice salaries there, ask why, with similar turnover, he should be paid more, although the share of his salary will be higher in percentage terms than that of competitors. At the same time, follow not only the motivation, but also the reaction. Finally, “to be honest” that the question is whether to fire him, to ask how to save money in order to pay him such a salary.
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An intelligent director will most likely be able to answer questions. Here the key will be the motivation of the general – if this is banal greed (ready to cut salaries for employees, save on what is necessary), then most likely this is not the best option. If a stable, well-paid position, then he is likely to be ready for a compromise. You can agree on an increase, but only when you reach a certain level of efficiency.

First you should listen, and only then talk about what you know about the issue (for example, if the CEO hid something, then it is better to first find out his version with leading questions and only then catch him in a lie than to immediately give out everything that You know, he’ll probably get out.)
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In a word, you won’t be able to answer “yes” or “no” right away. It would be strange if it were possible.

Yuri Zavalny’s decision

I would evaluate the manager with the involvement of specialists. Based on the results of the assessment, understanding what contribution the manager makes to the development of the company, he would make a decision. Perhaps the company is not growing because of him. Any leader should have a clearly expressed motivational component of remuneration.

Based on the fact that the company’s goal is to systematize the business, the business under the leadership of the current CEO is not transparent enough. Most likely, he fulfilled his mission, developed and implemented the necessary products and services. Now it’s the turn of a new manager – a manager of a successful business who will pay more attention to analytics and transparency. If the head is replaced by such a manager, the company will clearly benefit and increase its capitalization.
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In general, I would change.

Viktor Klimkin’s decision

New working conditions = new payment terms. If the director has to work harder (at least write more reports), he needs to be paid more than before. Increased accountability will require additional efforts and nerves from him. Comparison with the market is another case, not related to the salary increase in this case. There is someone to replace it cheaper without harming the business – change it.

Anton Zvyagin’s solution

Since the founders have a question about the director’s contribution to the growth of the company, it is necessary to initiate the procedure for assessing this contribution:

1. If the founders themselves do not take part in the activities, this rather simplifies the picture. It will be enough to develop a system of bonuses for the director, depending on the goals of the owners. If the goal is aggressive growth, then the premium should be a percentage of revenue, if profit maximization, then % of profit.

Thus, upon reaching the target, the remuneration of directors will grow by itself. It is best to start from dividing the director’s current remuneration into the salary part, which is fixed for the future, and the bonus part – at the current value of the target indicator.
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2. If the founders themselves work in the company, it is more difficult to assess the contribution of the director among the management. Profit and proceeds will then have to be distributed according to the contribution between the founders and the director. It will be necessary to analyze “who is whose client”.

3. If the scheme of the company’s work is “How one man fed two generals”, when the clients are all from the founders, and the director acts as an organizer of order fulfillment, then it is the quality of the organization that needs to be assessed. Profit and revenue in this case must be supplemented with indicators of the speed of order execution, customer focus, and quality of execution.
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Alexander Chen’s solution

To answer the question unequivocally, the owners must know exactly the tasks for which the CEO was hired. Systematization of business, definition of goals, transparent and formalized strategy, motivation system, in my opinion, these are the tasks that the CEO had to solve. If the CEO could not cope with this, and the owners at the same time have a question about his manageability and contribution to the company, then the CEO should definitely be fired.
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Evgeny Trufanov’s decision

There have been and will be conflicts of interest between the owner and the hired manager. If the owner does not have enough measure of understanding regarding the “contribution” of the manager, let him increase the measure of understanding, overestimate his own value base. If there are doubts about “controllability”, then let a regular management audit be carried out, where this indicator is calculated. And it’s really bad when the owner is greedy. It’s incurable.

And to measure a person’s contribution “by the median of the market” is to show the world an example of stereotyped thinking. For example, in recent years, instead of trust management, I began to offer investment partnerships to owners of large companies, where contributions are made to the project basis, evaluated by an independent appraiser (know-how, know who, rationalization proposals, research data, methods of implementation).
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Pavel Gamankov’s decision

I would offer the general director a share in the enterprise, the opportunity to become the third junior partner with a share of 10-25 percent. I would leave the salary in the same volume, maybe reduce it a little and bring it to the average market indicators.

Ivan Selunskiy’s decision

For the correct decision, it is necessary to understand the true tasks of the owner of the enterprise.
If the owner is really only interested in the profit of the enterprise – leave the existing director, expand his powers and provide an opportunity to earn more (stupidly tying his motivation to the profit of the enterprise). At the same time, it is necessary to take all possible measures to protect information, eliminating the possibility of leaving the client base and starting your own personal business. nine0003

If (and judging by the introductory notes, it is so) the owner wants to “play business” himself, then he should hire a completely submissive and uninitiative manager who will meekly fulfill any whim of the master.

Natalia Galaktionova’s solution

Since business is being systematized, it means that business is being digitized. Accordingly, not only a strategy appears, but also specific figures, and in this case it is not only a banal profit, but also the number of documents, counting the activities of managers, conversion, standard hours, etc.
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Managed business is primarily task management through the KPI system of employees, departments and the company as a whole, which are formed in a hierarchical form. Also, these are clearly defined processes with powers, performers, responsible and deadlines.

Systematizing business and making it transparent means removing it from manual control. Your CEO, based on the case, is a wonderful achiever with a high level of independent decision making. And it is manual control and independence that is his forte. Will he be able to create a single rule for everyone? Will he be able to work himself within the established rules? Far from a fact.
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The question arises, do you need such a CEO at this stage of the company’s development? And if not, will the company lose profits by getting stuck in building internal processes?

Accordingly, if the CEO realizes exactly what the owner requires of him and wants an increase in wages for an additional load, then he needs to set measurable tasks, upon reaching which he will reach the desired level of remuneration. And the salary does not have to be adjusted by bonuses (he will have bonuses, as before, for profit) and even more so, not by salary. I would introduce some variable part for the desired difference, which is made up of several indicators in total. The indicators should have their own weight – the CEO in this part will be able to directly manage his salary.
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So, goals can be set based on the desired dynamics of the company’s development, for example: 6, 9, 12 months.

I would discuss with him in advance the prospects for how events will develop in 6 months, if he does not reach a given milestone, for example:

1. His willingness to quit on his own without a “parachute”, as an employee who has not coped with his duties.

2. If he is a really significant employee for the company, then offer him the opportunity to move to the position of commercial director or business development adviser to the owner (tasks and salary is already a new case), and in his place to take a mundane production worker who is good at internal processes, and for salaries not related to sales bonuses.
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3. Leave the CEO at the same salary, but additionally hire an inexpensive employee with organizational development experience who will audit the processes (if it has not been done yet), agree on priorities with the owners and gradually build a transparent system.

Maxim Denisov’s solution

1. Logic.

The case does not disclose the reasons why the director demands an increase in wages, so I answer with an assumption.

If a person demands an increase in salary, it means that he sees an increase in duties or responsibilities, or something is simply unpleasant for him, and he wants to compensate for this with money. So you need to ask him what is the problem?
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If he directly calls her, then the problem needs to be solved. It can be anything from increased accountability and increased work hours to psychological issues and feelings of being controlled. Perhaps these are not empty fears of the unknown, but real difficulties that the director will face, but consultants and owners do not see them.

If the director does not give a reason, probably he is hiding something, then definitely say goodbye. But first we need to talk. The question is whether the owners have a trusting relationship with the director.
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2. Case from personal experience.

Things were going great in the organization, sales of products reached the maximum level (all manufactured products were immediately sold), another workshop was built, equipment downtime and defects were reduced, salaries of employees were significantly higher than the market average. But the hired director bought a Mercedes before the owners, the delivery of employees to the enterprise was carried out by buses belonging to the director, he appeared at the plant less often than the owners. The owners got angry and fired the director.
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Result: the director “took” the entire client base with him, and the company has been surviving for four years and periodically stops due to overstocking.

Conclusion: before you fire a director who was not previously controlled, start controlling him. In other words, you need to agree to his terms, and when everything becomes transparent, make a decision on dismissal.

Alexey Drozdov’s solution

There are two important points in the case:

1. Owners don’t understand the role of the CEO in business growth.
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2. The owners believe that the CEO is already weakly managed.

On the first point: based on the results of the consulting project, goals should be formalized, the motivation system should be changed, and, accordingly, the main business indicators should be determined, including those that are influenced by the CEO. Thus, it is possible at this stage to determine what influences the CEO, and to identify his role in the growth of the business. It is possible that at this stage it will become clear that a COO or a new CEO is needed.
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On the second point: if the general director is poorly managed, then it is quite possible that the main goals and objectives are not specified and the decision-making zones are not outlined, and perhaps there is a misunderstanding of the company’s development strategy between the owners and the general director. This is eliminated by the joint adoption of a business development strategy, key indicators and the area of ​​responsibility of the CEO.

If misunderstanding and lack of control are eliminated on this, then the general director should be left, and wages should be tied to key indicators. There is growth and profit – earn, no – fixed salary = average market.
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If the role is not clear, then leave. To hire an operating director or a new CEO with a clear definition of the main tasks, development vectors and points of control. If controllability is not solved within the outlined boundaries, then leave.

As for the salary, which, according to the case, is higher than the average market, then, in my opinion, it should be so. Thus, the company compensates candidates in demand with such parameters as career prospects, the company’s reputation in the market, the scale of the business, etc.
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Summary: if the CEO accepts the rules of the game and his contribution to the growth of the company is really significant, then leave. If the contribution is incomprehensible, leave. If manageability for owners is critical and there is no faith in its change, then, despite the contribution and growth, leave. Salary is secondary.

Tatyana Mokeeva’s decision

The specifics of the law firm’s activities are related to the analysis and preparation of court documents, lawsuits, complaints, claims, conducting cases in courts, which in turn requires knowledge of not only civil, labor, contractual and administrative law, business ethics, but also moral, psychological, and often physical preparation in conditions of increased tension. In unstable conditions, the question arises of a qualitative change in approaches to the motivation system, both for key personnel and managerial personnel.
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It is generally accepted that the main purpose of business is to make a profit. In fact, the main goal of a developing and large business is to increase the wealth of the owners (or shareholders) of the company, who are directly interested in the development and growth of the company in the long term. It is important to note that there can be disagreements between short-term and long-term effectiveness. A common problem faced by the owners of the company is the conflict of interests of managers (general directors) and the direct owners of the company. On the one hand, the CEO acts as an agent acting on behalf of the owners of the company and in their interests, on the other hand, he acts in his own interests. An example is the desire of the CEO to get higher bonuses in the current period by increasing the company’s short-term profits, but to the detriment of the company’s long-term profits and goals (for example, by reducing the cost of training and development of personnel, weakening quality control mechanisms, reducing research costs, purchase of lower quality materials). What kinds of actions can be taken to ensure that the CEO is acting in the interests of the owners?
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The following types of actions are commonly used in practice:

1. Owners may insist on close monitoring of the CEO’s actions and the use of company resources.

2. Owners can set up incentive plans for the CEO and managers that tie their remuneration to the performance of the company’s stock price. A common form of an incentive plan is to grant stock options to managers. These options give managers the right, but not the obligation, to purchase the company’s shares at a pre-agreed price at some future date. If the current market value of the shares exceeds their agreed price at the date of purchase, the managers make a profit by exercising the option. Thus, the interests of managers and owners converge more closely.
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In the UK, the Cadbury Commission was formed by the London Stock Exchange and created a set of rules called “Best Corporate Governance Practice”. Following this commission, the Greenbury Commission was set up to study directors’ pay practices in more detail. The Commissions soon issued a “Combined Code” which sets out a set of principles relating to such matters as the role of CEOs, their relationship with company owners, and their accountability.
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Some of the most important provisions of this Code, adapted to address the existing problem of the law firm in question:

1. Establish a Board of the company, managing and controlling it, from the owners, the general director and the most effective and interested in the development of the company managers (lawyers).

2. Share and enforce a clear division of responsibility between the Chairman of the Board and the CEO of the company, ensuring that no one has unlimited power.
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3. There must be a balance between the executive and non-executive (temporary and independent) members of the Council, which ensures that certain small groups of people cannot dominate the conduct of business.

4. The Board should receive timely information of a quality that will enable its members to carry out their duties.

5. The Director General must stand for re-election by the owners for a maximum term of three years. A key measure to improve the efficiency and motivation of the CEO may be to hold a competition to fill the position of the CEO of the company. At the time of the competition, the position of acting the general director may be occupied by his deputy.
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6. The Board should use annual meetings to communicate with private investors and encourage their participation.

7. The Board shall publish balanced and understandable assessments of the position and performance of the company.

8. Internal controls are needed to protect the welfare of company owners.

9. The Board shall form an audit (audit) committee that monitors compliance with the principles of internal control and financial reporting and maintains relations with external auditors.
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Rules should not be too rigid, as unscrupulous managers will still look for ways around them.

If the CEO does not provide the expected increase in the wealth of the owners (shareholders), they have the option to replace the existing management team with a new team that is more responsive to the needs of the company’s owners.

Natalia Chekhlatova’s decision

I will assume that the situation developed as follows:
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The two founders of the company some time ago decided that the business had grown and could be “let go”. In this regard, a general director was hired, to whom the management of the company was delegated. Apparently, no reference points were set at the time of the delegation, the parties did not agree on the system of interaction, or were not convinced of the same understanding of this system: the owners counted on regular reports and the coordination of all actions, and the CEO set up and closed all processes on himself. The owners did not have enough information, they lost contact with their business, there was a feeling of discomfort, there were fears for their business – “how is it there without us ?!”, but the indicators were growing – there is nothing to complain about. Fears intensified, doubts arose – what if growth is based on “old yeast?”, what if the CEO decided to “squeeze out” the business? (the Internet is replete with such stories) … And it was decided to attract a consulting agency.
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On the other hand, the general director felt quite independent in making decisions, the business was growing, there were (apparently) no complaints from the owners, the salary was satisfactory, in general, “life is settled.” And then the owners decided to invite business consultants. Well, new experience is good, interesting, useful. The new system of motivation is also good, under this system it is possible to raise the issue of increasing salaries – the moment is right. The issue was raised, but the owners apparently did not find the arguments convincing (for a significant increase in wages). If we are talking about dismissal, then the issue has grown into a conflict – each side defended its point of view.
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Given the cooperation with the consultant, the CEO is honest with the owners.