Vice President (VP), Operations Salary
VPs of Operations in the United States can look forward to a sizeable six-figure salary — around $122K per year on average. Overall cash earnings for VPs of Operations stretch from $71K on the lower end to $222K near the top, and the heftiest packages can encompass around $51K from bonuses and $35K from profit sharing. The most important factor affecting compensation for this group is the specific employer, followed by tenure and geographic location. Generally, women make up less than a third of all VPs of Operations who answered the questionnnaire. A large number enjoy medical while a fair number get dental coverage. Vision coverage is also available to the larger part. The majority of workers are highly satisfied with their job. Respondents to the PayScale salary survey provided the data for this report.
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
As VPs of Operations transition into upper-level roles such as Senior Vice President of Operations, they may see a strong upturn in salary. Senior Vice Presidents of Operations earn $181K on average per year. VPs of Operations moving up in their careers tend to step into positions as Presidents or Chief Operating Officers. The median paychecks in those roles are $20K higher and $6K higher, 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), Citibank, The Goldman Sachs Group, Inc., Barclays Capital Inc, and Bank of America Corp. (BOFA) are top-notch employers for VPs of Operations in this area. Those at Xerox Corporation can expect to make the most, with the company offering a median salary of $158K. State Street Bank, J.P. Morgan Chase & Co. (JPMCC), and The Goldman Sachs Group, Inc. are a few other companies that offer generous salaries, with VPs of Operations earning around $149K, $131K, or $130K at each firm, respectively.
Other low-paying employers include Citibank at $101K and Bank of America Corp. (BOFA) at $102K, though some VPs of Operations there earn up to $164K.
Popular Skills for Vice President (VP), Operations
VPs of Operations report using a large range of skills on the job. Lucky workers who know Lean Manufacturing can expect a significant pay bump, scoring salaries 22 percent above average. Leadership and Strategic Planning are also correlated to pay that is above average, with increases between 13 percent and 22 percent. 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 proficient in Operations Management are, more often than not, also skilled in 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.
VPs of Operations with a lot of experience tend to enjoy higher earnings. Individuals with fewer than five years of experience earn $92K on average, but those in the five-to-10 year group see a six-figure median of $112K. VPs of Operations who work for 10 to 20 years in their occupation tend to earn about $136K. Respondents who claim more than 20 years of experience may encounter pay that doesn't quite reflect their extensive experience; these veterans report a median income of around $155K.
Pay Difference by Location
For VPs of Operations, Washington provides a pay rate that is 28 percent greater than the national average. VPs of Operations will also find cushy salaries in San Francisco (+26 percent), Atlanta (+16 percent), Boston (+15 percent), and Houston (+15 percent). Tampa is home to the smallest salaries in the field, lagging the national average by 17 percent. Below-median salaries also turn up in San Diego and Austin (8 percent lower and 7 percent lower, respectively).
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