What should be the salary of the Managing Director of a company with a £13 million/yr turnover?
Asked by Lavender
Director's Salaries in my (life) partner's company are being reviewed and I believe he is highly underpaid for what he does. He completely runs the whole outfit; does very long hours, and is away a lot. Proft is small to non-existent.

Best Answer:
£13M turnover is not that high and if profits are small then the business has a high cost base. One should ask the question does this business have future potential? To be able to review his salary would require evidence that your partners performance is impacting positively on the business or that he is key to the ongoing viability of the business. It does however take courage and conviction to have that conversation and ultimately if he believes he is not being paid what would be considered to be a market rate, than he can choose to work elsewhere. It is important in negotiation to to know and be able to communicate your true value to a business. Good luck.
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Answered by smokeyforte

Turnover means nothing. What's the profit like at the end of the financial year? Additional: His salary will reflect the small to non-existent profit the company makes.
Answered by TallPaul

No idea. I am a nurse working in an operating theatre, work ridiculous hours, on call duties, on 0800 to 21.30 last night with no breaks. This is a multimillion £ company too. If partner has an opening were people are paid for performance and worth, ask if I can have a job? Thanks x
Answered by Liz F

The salary of the MD is no way dependent on the turn over! If u make a comparison with some(say 10) companies u'd notice the difference. It depends on the job responsibilty he holds. Also, as he holds th e highest position, he should be the one who earns more than any1 else.
Answered by Sreeji S Nair