Expert: Arthur Naman - 11/17/2009

Question
what approach would you take to do a salary analysis to current vs next year? Expense bridge to show the up or down from prior year

Answer
Under normal conditions I might look at the trend over the past few years rather then just the immediate prior year. However, in this economy I am not sure that analysis would be valid. I am not sure than a "normal" annual percentage salary increase would apply to next year's salary in 2010.

All of this depends on the position the company is in. If the company is not doing so well, perhaps no change in salaries is to be expected. On the other hand, if the company is doing well, an increase in salaries might be appropriate.

My point is that there are a variety of factors involved in projecting salaries from this year to next.

Hope this helps.