Vice President (VP), Operations Salary
Average pay for VPs of Operations in the United States is more than reasonable, with annual salaries pushing past the six-figure mark ($121K). With some bonuses approaching $51K and certain profit sharing proceeds approaching $32K, overall incomes of VPs of Operations spread between $72K and $222K depending on individual performance. The most influential factor affecting pay for this group is the specific employer, though career duration and geography have a (lesser) impact as well. Medical benefits are awarded to most, and a strong majority earn dental coverage. Job satisfaction is high and work is enjoyable for most VPs of Operations. Most VPs of Operations survey respondents are men (70 percent). This overview is based on answers to PayScale's salary questionnaire.
Job Description for Vice President (VP), Operations
The vice president of operations assists their company's president with day-to-day operations. These executives develop and implement a variety of strategies to maximize profits while maintaining an acceptable level of quality, as well as work on improving the supply chain to positively impact variables such as cost, quality and delivery time. Vice presidents of operations provide oversight and guidance to subordinates, follow up on projects assigned to staff and stay up to date on their company's research and development efforts. They also need to provide timely feedback and guidance for both subordinates and to fellow executives on operations-related issues.Read More...
Vice presidents of operations must be have a thorough knowledge of their company's products and services, as well as their industry and the competition. Additionally, these executives must understand relevant government rules and regulations and industry best practices. They are often required to travel to visit clients, vendors and/or their regional offices.
Typically, vice presidents of operations have at least a bachelor's degree in a relevant field such as business, marketing or finance; a master's degree may be required or preferred as well. Additionally, these executives must have excellent leadership, communication and interpersonal skills, as well as be proficient with basic computer software such as the Microsoft Office suite. Industry-specific credentials may be required, and proficiency or fluency in a second language may be needed as well.
Vice President (VP), Operations Tasks
- Provide leadership for the overall operating performance of the business.
- Develop, monitor and administer financial program to maintain efficient, quality services.
- Develop new resources and new revenue streams.
- Evaluate operational processes and procedures, and develop strategies and implementation plans to improve and standardize all aspects of operations.
Common Career Paths for Vice President (VP), Operations
For VPs of Operations, progressing to an Executive Vice President of Worldwide Operations role may result in a significant raise. On average, an Executive Vice President of Worldwide Operations can earn $184K annually. When VPs of Operations are ready for the next step in their careers, they often become Presidents or Chief Operating Officers. Those roles pay an additional $21K and $6K, respectively.
Vice President (VP), Operations Job Listings
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Popular Employer Salaries for Vice President (VP), Operations
J.P. Morgan Chase & Co. (JPMCC), The Goldman Sachs Group, Inc., Citibank, Barclays Capital Inc, and Bank of America Corp. (BOFA) are some prominent firms with considerable interest in employing a large team of VPs of Operations. Xerox Corporation leads the field in terms of pay, with a median salary of $158K. Also paying near the top of the field are State Street Bank at $151K, The Goldman Sachs Group, Inc. at $130K, and J.P. Morgan Chase & Co. (JPMCC), where VPs of Operations annually earn $129K.
Others at the bottom of the scale for this job include Citibank at $100K, and Bank of America Corp. (BOFA) where $107K is the norm, but it is worth noting that some VPs of Operations there earn up to $164K.
Popular Skills for Vice President (VP), Operations
Survey results imply that VPs of Operations deploy a substantial tool kit of skills at work. Most notably, facility with Lean Manufacturing, Leadership, and Strategic Planning are correlated to pay that is significantly above average, leading to increases of 27 percent, 22 percent, and 18 percent, respectively. Those listing Human Resources as a skill should be prepared for drastically lower pay. Customer Relationship Management and Project Management also typically command lower compensation. Those familiar with Operations Management also tend to know Project Management, Budget Management, and Strategic Planning.
Pay by Experience Level for Vice President (VP), Operations
Median of all compensation (including tips, bonus, and overtime) by years of experience.
Experience seems to be a major factor in determining the incomes of VPs of Operations. Although inexperienced employees take home approximately $93K, those who have five to 10 years under their belts benefit from a six-figure median of $111K. The average pay reported by folks with 10 to 20 years of experience is around $134K. Individuals who report more than two decades of experience seem to make only slightly more than folks in the 10-to-20 year range; the more senior group sees median earnings in the comparatively modest ballpark of $154K.
Pay Difference by Location
Surpassing the national average by 26 percent, VPs of Operations in San Francisco receive some of the highest pay in the country. VPs of Operations can also look forward to large paychecks in cities like Washington (+25 percent), Houston (+17 percent), New York (+15 percent), and Atlanta (+14 percent). Tampa is the lowest-paying area, 17 percent south of the national average. Employers also pay below the national average in San Diego (7 percent lower) and Austin (6 percent lower).