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Journal of Supply Chain Management

Factors That Influence Chief Purchasing Officer Compensation Members Only Content

While several previous surveys have examined the salaries of purchasing professionals, none have addressed the specific issues related to chief purchasing officer (CPO) compensation. This article presents the results of a CAPS Research survey investigating job-related and personal characteristics that influence Fortune 500 chief purchasing officer compensation. Logistic regression was used to derive odds ratios to analyze the survey data. Empirical results indicate that the following are the main drivers of CPO compensation: (1) industry, (2) size of organization as measured by annual sales, (3) spend as a percent of sales, (4) total number of employees reporting, (5) levels of management between the CPO and CEO, (6) years of business-related, non-purchasing experience, (7) CPO age, and (8) professional certifications. Implications of the research findings are discussed throughout the article.

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