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;
Engineering (this includes all Engineering
roles as Systems Engineering is not split out specifically).
These relate to the company's new grading structureknown
as Watson Wyatt or WW gradeswhich 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:
WW17Management Committee level
of business;
Exec4Senior 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
Grade | Lower
Quartile
| Median | Upper
Quartile
|
WW17 | 105.5 | 114.5
| 121 |
WW16 | 82.5 | 90
| 103.5 |
WW15 | 66 | 72.5
| 82.5 |
Exec3 | 49.5 | 54.5
| 60 |
Exec4 | 40.5 | 43
| 47 |
| |
| |
PROCUREMENT DATA
Grade | Lower
Quartile
| Median | Upper
Quartile
|
WW16 | 75 | 89
| 113 |
WW15 | 68 | 71
| 80 |
Exec3 | 48.5 | 53.5
| 59.5 |
Exec4 | 39.5 | 41.5
| 45 |
| |
| |
COMMERCIAL DATA
Grade | Lower
Quartile
| Median | Upper
Quartile
|
WW17 | 95 | 103.5
| 120 |
WW16 | 81 | 86.5
| 91.5 |
WW15 | 63 | 72.5
| 80 |
Exec3 | 47 | 50.5
| 55.5 |
Exec4 | 39 | 41.5
| 45 |
| |
| |
ENGINEERING
Grade | Lower
Quartile
| Median | Upper
Quartile
|
WW17 | 100.5 | 111
| 122 |
WW16 | 79 | 82.5
| 91 |
WW15 | 67 | 70.5
| 80.5 |
Exec3 | 53 | 57
| 62 |
Exec4 | 44 | 47.5
| 51.5 |
19 January 2010
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