Insights
BlueSteps Executive Compensation Report - December 2014
The survey results confirm an increase in total compensation for the majority of executives. Almost half (44%) of executives at the CEO/President level experienced a rise in total compensation. Of those CEOs who experienced an increase in total compensation, 38% received +16% or higher growth in the last fiscal year. CEOs earned significantly more than the rest of the C-suite with 45.6% earning a $251-400K base salary , while the greater part of other C-level executives earned $100K less--$151-300K.
The 2014 AESC’s BlueSteps Executive Compensation survey was conducted from October 2014 to November 2014 and received 907 responses from senior-level executives across the world. The purpose of this survey was to better understand trends in global executive compensation and provide a unique benchmarking resource, providing executive compensation information across a wide range of industries, functional roles and regions.
Total Compensation on the Rise for Most Executives
The survey results confirm an increase in total compensation for the majority of executives. Almost half (44%) of executives at the CEO/President level experienced a rise in total compensation. Of those CEOs who experienced an increase in total compensation, 37% received +11% or higher growth in the last fiscal year. CEOs earned significantly more than the rest of the C-suite with 45.6% earning a $251-400K base salary, while the greater part of other C-level executives earned $100K less--$151-300K. The significant spread between those who received the greatest increase in total compensation and those who remained flat or decreased is likely an indicator that “pay for performance” is working in terms of both cash compensation and long-term incentives.
Gender Pay Gap More Significant in the C-Suite
In the last fiscal year, male and female executives who earned less than $250K continued to earn relatively equal base salaries at each pay level. At the $250K base salary level and above, the gender pay gap began to expand due to fewer women being represented in C-level positions. More male executives (48.5%) also received higher-level cash bonuses (above $51K) vs. only 38.2% of female executives for the same reason.
Karen Greenbaum, AESC President & CEO, says: “This survey shows that total compensation is on the rise for most executives. It is interesting to note that executive search revenues grew by 8.6% year-on-year during quarter three indicating increased demand for top level talent, according to the AESC’s latest ‘State of the Industry’ statistics. There is no doubt that, as businesses are now in growth mode, top talent is highly valued and sought after. For many organizations, executive search is the solution to their talent concerns and the profession is responding.”
“This report also suggests that the gender pay gap isn’t noticeable until the $250K+ level, where fewer women are represented in the data. Organizations risk losing top talent to their competition if they don’t clearly demonstrate that they value diversity and inclusion at all levels of the organization. The AESC is proud to be partnering with the 30% Club to work towards greater diversity on the board and across the C-suite.”