Practice Owners Report Higher Incomes Than Employed ODs, Jobson Survey Finds
Friday, July 6, 2018 1:15 PM
A recent Jobson Optical Research study of ECP compensation trends found that practice ownership is a more profitable career course for an OD than following an “employed” business track.
The findings of the Jobson survey, which were reported in a June 20 story in Review of Optometric Business (ROB)
, showed that the average compensation reported for employed ODs was $109,625 in 2017. This compares with the average total compensation of $141,624 for ECPs who are owner/partners, according to the survey’s findings. (The compensation for this group would include any salary they may have assigned themselves.) The difference was almost $32,000 over the course of the year.
The findings are based on Jobson Optical Research’s 2018 ECP Compensation Study
review of the survey data shows that, spread over a 40-year career without taking into account inflation, and owner/partner OD would earn approximately $1.3 million more than an employed OD. If inflation is considered, the difference for the owner/partner OD would be greater.
“Financial planners will tell you there is a significant difference between making less than $100,000 per year and making more than $100,000 per year,” ROB noted in its story. “The difference impacts how many times you can eat out per week, what level of house you live in, what neighborhood you live in, what type of car you drive, what kind of vacation you take per year, what schools you put your children into, how much you put into your retirement account per year and your financial stress levels.”