Defence Equipment 2010 - Defence Committee Contents


Letter from Ian Godden, Chairman A D S

  In giving evidence to the House of Commons Defence Select Committee on 8 December 2009, I was asked about the proportion of research and development on defence equipment that is funded by industry while Ian King referred to the difference between MoD salaries and those in industry. You requested that our panel follow up on these two questions.

  Please find below information below on R&D investment by industry as well as data on salaries in BAE Systems and how these compare with MoD.

RESEARCH AND DEVELOPMENT

  Annual survey data from A D S in 2008 showed that the industry in the UK invested £1.4 billion in defence R&D. This is in fact a conservative estimate of the amount the industry contributes in this respect for two reasons. Firstly, the data was collected as part of the then SBAC aerospace survey, so it covers only defence aerospace. Secondly, it does not include the entirety of the defence industry, but a sample from the A D S membership. Following SBAC's merger with the DMA, we are considering how to include further aspects of the defence industry as part of the survey.

BAE SYSTEMS

  Below is BAE Systems' benchmark data for the following functions:

    —  Project/Programme Management;

    —  Commercial;

    —  Procurement; and

    —  Engineering (this includes all Engineering roles as Systems Engineering is not split out specifically).

  These relate to the company's new grading structure—known as Watson Wyatt or WW grades—which is progressively being introduced. It has not yet been introduced in the more junior executive grades, which are referred to as Exec grades 3 and 4. An explanation is below:

    —  WW17—Management Committee level of business;

    —  WW16—Leader;

    —  WW15—Leader;

    —  Exec3—Manager; and

    —  Exec4—Senior Professional.

  It is difficult to be precise about analogue MoD grades, but we would estimate that WW17 probably equates to the first rung in the Senior Civil Service. The lower grades knock on in consequence, but there is no direct read across to lower civil service grades.

  Against that background, the data below gives the approximate salary ranges (in £1,000s) for roles within BAE Systems.

PROJECT MANAGEMENT DATA
GradeLower
Quartile
MedianUpper
Quartile
WW17105.5114.5 121
WW1682.590 103.5
WW156672.5 82.5
Exec349.554.5 60
Exec440.543 47


PROCUREMENT DATA
GradeLower
Quartile
MedianUpper
Quartile
WW167589 113
WW156871 80
Exec348.553.5 59.5
Exec439.541.5 45


COMMERCIAL DATA
GradeLower
Quartile
MedianUpper
Quartile
WW1795103.5 120
WW168186.5 91.5
WW156372.5 80
Exec34750.5 55.5
Exec43941.5 45


ENGINEERING
GradeLower
Quartile
MedianUpper
Quartile
WW17100.5111 122
WW167982.5 91
WW156770.5 80.5
Exec35357 62
Exec44447.5 51.5

19 January 2010




 
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