You would not bid a $100 million project with a $60 million budget. Stop hiring your VP of Operations that way.
The VP of Operations is the person who determines whether your company makes money or loses it at scale. They run your project portfolio, manage your project executives and superintendents, own your margins, and decide whether your firm can actually execute on the work you are selling. And yet, more often than not, companies price this role like a senior project manager with a fancier title. Then they wonder why the candidates they actually want keep saying no.
What the Data Actually Says
According to CFMA's 2025 Executive Compensation Survey for Contractors, the most comprehensive compensation study in the construction industry, the average VP of Operations base salary is $215,613. The average bonus is $113,143. That puts average total compensation at roughly $328,000.
That is the average. The candidates you are trying to recruit are not average. The ones who are currently employed, performing well, and not looking for a job are sitting at the 75th percentile or above. The 75th percentile for VP of Operations base salary is $249,000 before bonus. The 25th percentile is $180,000.
Read that again. If your offer starts at $180,000 base, you are not making a competitive offer. You are making an offer at the bottom quarter of the market and hoping the candidate does not know what the market looks like. They do.
VP of Operations compensation varies meaningfully based on company revenue, portfolio complexity, and geography. A VP Ops at a $30 million regional GC is a different job than a VP Ops at a $300 million multi-market contractor. The CFMA figures reflect the full respondent pool across all revenue sizes. Firms at the smaller end of the spectrum will generally see comp toward the lower end of the range. Firms at the larger end should expect to be well above the average. Use these numbers as a floor for your planning, not a ceiling.
Source: CFMA 2025 Executive Compensation Survey for Contractors, published by PAS, Inc.
The Gap Between Retained and Recruited
The salary data above reflects what people are currently earning. It does not reflect what it takes to get the person you actually want to leave a job they are comfortable in and take a chance on yours.
Recruiting a passive candidate at this level almost always requires a meaningful premium over their current total comp. The person who is performing well, trusted by their leadership team, and not actively looking is not going to move for a lateral offer. They need a reason. That reason is usually a combination of a better opportunity and better money. If you are not prepared to offer both, you are not going to close the candidate you actually want.
If you are competing against a company that understands this and your offer is at the CFMA average, you are not competing. You are hoping they say yes out of politeness.
How Bonuses Are Structured at This Level
Base salary is only part of the conversation. At the VP of Operations level, the bonus structure is often what separates a good offer from a great one. The industry has moved away from discretionary bonuses toward metric-driven structures tied to things a VP Ops can actually control.
| Bonus Type | Typical Range | What Drives It |
|---|---|---|
| Annual performance bonus | 25% – 75% of base | Revenue growth, margin improvement, safety metrics |
| EBITDA-based bonus | 30% – 100% of base | Stair-stepped incremental EBITDA improvement |
| Signing bonus | $25,000 – $75,000+ | Used to close the gap when base is constrained |
| Long-term incentive / equity | 15% – 30% of base annually | Deferred comp, phantom stock, profit-sharing |
| Vehicle allowance | $800 – $1,500/month | Standard at this level across most GC and CM firms |
Source: CFMA 2025 Executive Compensation Survey for Contractors.
What Drives a VP Ops Salary Above Market
Not every VP of Operations commands the same number. Four things consistently push comp above the market range for this role.
Portfolio size and complexity
A VP Ops managing $150 million in annual volume is a different animal than one managing $500 million across multiple markets and project types. The complexity of the portfolio, the number of direct reports, and the risk exposure all factor into comp. If you are asking someone to manage a portfolio that has grown significantly, price it accordingly.
P&L ownership
The best VPs of Operations have owned their numbers. Not just reported them. Owned them. They have been accountable for margin, have made the hard calls on underperforming projects, and have a track record of improving profitability at scale. That track record commands a premium. It should.
Passive status
The VP of Operations you actually want is not on the market. They are running projects somewhere, being paid reasonably well, and not thinking about your job posting because they have never seen it. Getting that person to take a conversation requires a compelling case and a compelling number. Budget for it.
Market and sector specialization
A VP Ops with deep experience in data center construction, healthcare, or heavy civil commands a premium over a generalist. The specialty trades in particular are running hot right now due to the data center boom. If you need someone with that background, expect to pay for it.
The ROI Argument You Should Be Making Internally
If a VP of Operations at market-rate comp, roughly $215,000 base plus bonus, oversees $100 million in annual project volume and improves your average project margin by two points, that is $2 million in additional profit. Three points is $3 million. One good hire at this level pays for itself many times over in the first year alone.
So when the conversation internally is about whether you can justify paying above the CFMA average for this role, the real question is whether you can afford not to. A mediocre VP of Operations who costs you two margin points on a $100 million portfolio is not a bargain. They are the most expensive hire you ever made.
The companies that understand this are the ones willing to pay above market to get the right person. The companies that do not understand it are the ones losing searches to those companies and wondering why.
What This Means If You Are Hiring
Set your comp range before you start the search. Not after you meet the candidate. The worst thing you can do is spend six weeks running a search, find the right person, and then discover your budget is $40,000 short of what it takes to close them. That is not a budget problem. That is a planning problem. If you are ready to get serious about this hire, start your search here.
Know what the market looks like for your specific revenue size, your specific geography, and the specific background you actually need. Then build an offer that gives you a real chance of closing the person you want. Not the person who was available.
And if you are not sure what that number is, that is exactly what a free market insight call is for. We will tell you what the number actually is for your market, your company size, and the profile you are trying to hire.
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