Are you curious about how product manager salaries vary depending on the size of the company? In this article, we’ll break down the average product manager salary by company size, offering insights on what you can expect to earn at small, medium, and large companies. Knowing these differences can help you make informed career decisions.
Article Highlights
Product manager salaries vary significantly based on company size, with larger companies generally offering higher compensation due to their greater resources and complexity of roles.
Effective product managers must possess a blend of soft and hard skills, including excellent communication, empathy, analytical abilities, decisiveness, and business acumen, to successfully launch high-quality products.
In 2024, product manager salaries are expected to follow current trends, with significant differences based on company size and industry, and high demand for these roles reflected in competitive compensation packages and numerous job openings.
What does a Product Manager do?
A plethora of responsibilities fall under the purview of a product manager, all of which greatly contribute to a company’s success. Product managers are responsible for:
Ensuring that products meet customer needs
Aligning products with business goals
Balancing the needs of stakeholders
Understanding the product landscape for informed decision-making
Product managers, often working closely with a chief product officer, are the glue that holds various departments together and must ruthlessly prioritize resources to achieve success. In this role, a product management director plays a crucial part in ensuring the team’s effectiveness, as a product manager reported.
Another integral part of effective product management is enabling team members, including anonymous product manager employees, to make independent decisions. This involves influencing without direct authority, often achieved through active listening and storytelling. A product manager must develop a thick skin to handle the dissatisfaction that comes from making tough tradeoffs.
From delivering high quality products to processing millions of transactions, those with the job title product manager are the unsung heroes behind successful launches. They work closely with teams across engineering, marketing, sales, and customer support to ensure seamless product rollouts. The role requires a blend of strategic thinking and hands-on project management, making it both challenging and rewarding.
What are the qualities of a good Product Manager
A good product manager must possess a unique blend of soft and hard skills to balance input, concerns, and feedback from multiple departments. Excellent communication is key to ensuring smooth collaboration between cross-functional teams and effective product presentation. Empathy is another crucial quality, allowing product managers to understand their customers’ needs and the perspectives of various stakeholders.
Analytical and data skills are vital for deciphering customer journeys and making well-informed decisions. Decisiveness and flexibility are needed for making quick decisions and adapting plans as new information arises. This agility helps navigate the complex landscape of product management.
Moreover, business acumen is necessary for product managers to:
Align their product goals with the company’s overall objectives
Understand the value exchange
Drive their organization with enthusiasm
Maintain curiosity about their job and business
These qualities collectively ensure successful launches and high quality products.
Common Pay Structure Explained
The average base salary for a product manager in the United States is around $120,000 annually, but this can vary significantly based on experience, location, and industry. Entry-level product managers typically earn between $80,000 to $100,000 annually, while senior product managers can expect salaries well above $150,000, excluding bonuses and equity components.
Equity and stock options are significant components of compensation packages, especially in startups and tech companies. Bonuses and performance incentives can include performance-based bonuses, sign-on bonuses, and milestone achievements. Benefits such as health coverage, pension schemes, paid time off, remote work opportunities, and expense allowances further enhance the overall compensation package.
Average Product Manager Salary by Company Size
Product manager salaries can vary significantly depending on the size of the company. In general, larger companies tend to offer higher compensation due to their greater financial resources and the complexity of the roles. This section breaks down salaries by company size, providing insights into what product managers can expect in small, medium, and large companies.
For individuals aiming to strategically chart their career path, comprehending these differences is pivotal. Whether you’re aiming for a role in a startup, a mid-sized firm, or a large corporation, knowing the salary landscape, including those who reported a yearly salary, can help you make informed decisions.
Small Companies (1-50 Employees)
Product managers at small companies or startups can expect a lower salary range compared to larger firms. Entry-level startup product managers earn around $69,000 annually, while experienced managers can make up to $184,000. These salaries often reflect the budget constraints of smaller businesses, offering both early career experience and potential rapid growth opportunities.
While the starting pay may be lower, working in a smaller company can present considerable opportunities for learning and career progression. The agility of startups allows product managers to wear multiple hats and gain diverse skills that can be invaluable in their professional journey.
Medium Companies (51-500 Employees)
Medium-sized companies often offer higher salaries than startups but typically less than large corporations. At medium-sized companies, product managers typically see a moderate increase in compensation compared to small businesses. These companies often provide a balance between the agility of small companies and the resources of large companies.
Medium-sized companies also tend to supplement salaries with cash bonuses, enhancing the allure of their compensation packages. This blend of agility and resources creates an environment where product managers can thrive and grow their careers.
Large Companies (500+ Employees)
In large corporations, product managers may earn significantly more in tech giants, with salaries reflecting the high demand and competitive market in the technology sector. These companies often offer:
extensive resources
specialized roles for product managers
opportunities for higher salaries
career growth
Large companies also typically provide comprehensive benefits packages, including health coverage, retirement plans, and significant bonuses. The extensive resources available in these organizations allow product managers to focus on strategic innovation and delivering high quality products.
Average Total Cash Compensation
The total cash compensation for product managers typically comprises both the base salary and any supplementary bonuses. Base salaries can vary significantly based on the company’s size and industry, with additional performance-based bonuses enhancing total earnings.
Total cash compensation packages for product managers often reflect the value they bring to the company. These packages, including average additional cash compensation, are a critical factor in attracting and retaining top talent, highlighting the competitive nature of the role.
Different industries of Product Managers and their average pay
Given their pivotal role in customer experience and product adaptation, product managers in the software industry usually command higher salaries. The average salary for product managers can vary significantly depending on the industry, with higher demands in tech-heavy sectors. Product managers in high-demand industries like technology and software are seeing competitive salaries but not necessarily the 20% increases many are seeking.
Industries with more traditional or slower product cycles may offer lower average salaries compared to fast-paced sectors like technology. For instance, product managers in the financial services sector, such as at JPMorganChase, often receive substantial compensation packages due to the critical role they play in product innovation and customer relationship management.
In advertising technology, companies like Publica provide lucrative salaries for product managers, aligning with the industry’s growth and revenue potential. Similarly, product managers at companies like Square, working on commerce solutions and integrated software systems, receive competitive salaries reflecting the strategic importance of their roles.
What is the average Product Manager salary by company size: 2023?
In 2023, the average product manager salary in the United States was approximately $127,192. Product managers with less than 2 years of experience earned about $74,000 on average, while those with over 15 years of experience could earn up to $154,000. Entry-level product managers in small companies typically earned less than those in larger companies.
In medium-sized companies, product managers’ salaries were generally higher compared to small companies, reflecting the additional resources and complexity of the roles. Larger companies often offered the highest salaries, reflecting increased responsibilities and resources.
What is the average Product Manager salary by company size: 2024?
In 2024, product managers at large enterprises (500+ employees) are projected to earn a higher average salary compared to those at medium and small companies. Salaries for product managers are expected to follow current trends, with compensation increasing with the size of the company. Vice Presidents (VP) of Product receive an average annual salary of $199,000, while Chief Product Officers (CPO) have an average salary of $232,000 per year. In this context, it’s essential to consider average product salaries when evaluating potential career paths in the field.
Based on 2023 data, salary growth for product managers is anticipated to be more significant in tech-centric companies. Here are the average salaries for different levels of product managers in 2024:
Associate Product Managers (APM): $86,000 per year
Product Owners (PO): $110,000 per year
Senior Product Managers (SPM): $152,000 per year
Group Product Managers (GPM): $195,000 per year
Equity and performance-based bonuses will likely continue to be significant components of compensation packages, particularly in larger companies. These additional forms of compensation can significantly boost total earnings, making roles in larger companies particularly attractive.
What is the outlook for Product Manager pay?
As of July 2024, there are almost 40,000 product manager roles open on LinkedIn, indicating a high demand for these professionals. To view job product manager listings, simply search on LinkedIn and explore the opportunities. The indispensable role of product managers in shaping customer experience and adapting products to evolving market conditions makes them highly sought after. Despite this demand, a significant salary increase of 20% for product managers is not realistic, even though they are highly sought after.
Beyond salary, product managers value work-life balance, meaningful work, and opportunities for career advancement. The outlook for product manager pay remains positive, with continued demand for skilled professionals and competitive compensation packages expected across various industries.
Product Manager Salary: Men vs Women
In 2024, men in product management roles continue to earn higher salaries compared to their female counterparts. The gender pay disparity in product management has shown only slight improvements over the years, with female product managers earning approximately 85% of what male product managers make.
Efforts to close the gender gap in product management salaries are ongoing, but progress is gradual. Addressing these disparities requires continued focus on equitable pay practices and support for women in leadership roles within the industry.
What are the US states with the highest Product Manager pay
California tops the list with the highest average product manager salary at $123,009 annually. Washington and New York follow, with average salaries of $107,415 and $105,501 respectively. These states are major tech hubs, which contributes to the higher pay for product managers. In comparison, the common product manager salary across the United States varies depending on the location and industry, resulting in different product manager salary ranges. Recent product manager salaries show a similar trend in these states.
Other states offering high average salaries include Oregon at $101,163, New Jersey at $100,492, and Nevada at $98,840. These regional differences highlight how location can significantly affect product manager salaries.
Additional Compensation and Benefits
Product managers may also receive bonuses, a considerable form of additional cash compensation. These bonuses can significantly increase the total earnings of a product manager beyond their base salary, making them an attractive part of compensation packages.
Total earnings of a product manager also encompass additional compensation and benefits. These can include health coverage, retirement plans, and remote work opportunities, all of which enhance the overall compensation package and make the roles more attractive to potential candidates.
Bonuses and Equity
Product managers often receive performance-based bonuses, which can significantly boost their average total compensation. Medium-sized companies frequently offer balanced compensation with additional cash bonuses and career development opportunities.
Many product managers also receive stock options or equity grants, providing them with a stake in the company’s success. At large corporations, product managers can expect higher base salaries, extensive benefits, and opportunities for stock options or equity, which can significantly increase their total earnings.
Summary
Understanding the average product manager salary by company size, industry, and location provides valuable insights for both current and aspiring product managers. Small companies offer rapid growth opportunities, though often with lower initial pay, while medium and large companies provide higher salaries and extensive resources. The technology and financial services sectors stand out for their competitive compensation packages, reflecting the strategic importance of product management roles in these industries.
Looking forward, the demand for skilled product managers remains high, with competitive pay packages expected to continue, particularly in tech-centric and high-demand sectors. However, addressing gender pay disparities and understanding regional differences are crucial steps toward creating a more equitable and transparent salary landscape. Whether you’re navigating career decisions or negotiating your next role, these insights equip you with the knowledge to make informed choices and aim for the compensation you deserve.
Frequently Asked Questions
What factors affect product manager salaries the most?
The primary factors affecting product manager salaries are company size, industry, location, and experience level. Larger companies and tech-heavy industries tend to offer higher pay, while regional differences also play a significant role.
How do bonuses and equity impact total compensation for product managers?
Bonuses and equity can greatly increase a product manager’s total compensation by providing additional financial rewards beyond the base salary.
Are there significant salary differences between male and female product managers?
Yes, female product managers earn approximately 85% of what male product managers make, indicating a persistent gender pay gap in this field.
Which US states offer the highest salaries for product managers?
The top three US states offering the highest salaries for product managers are California, Washington, and New York, due to the presence of major tech companies and higher living costs in these areas. Consider exploring opportunities in these states for competitive compensation.
What is the outlook for product manager salaries in the future?
Product manager salaries are expected to remain positive with high demand and competitive compensation packages, though significant increases beyond current levels may be unlikely.
