Home

Total Compensation on the Rise for Most Executives

The 2014 AESC BlueSteps Executive Compensation Report, released today by the Association of Executive Search Consultants (AESC), reveals that almost half (44%) of executives at the CEO/President level experienced a rise in total compensation in the last fiscal year.

Of those CEOs who experienced an increase in total compensation, 37% received +11% or higher growth in the last fiscal year. The greatest percentage of respondents at this level (45.6%) earned annual base salaries in the $251-400K bracket.

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.

The last year was also positive for executives at the director and EVP/SVP/VP levels, as two-thirds of both groups received an increase in total compensation (66% and 65% respectively).

The AESC and BlueSteps conducted the survey from October 2014 to November 2014 and gathered 907 responses from senior-level executives in manufacturing/industrial, technology/telecoms, healthcare/life sciences, consumer/retail and other sectors worldwide. Additional findings of the report include:

  • A significant amount (45.6%) of CEOs made base salaries of $251-400K, while the rest of the C-suite (64.7%) earned $151-300K--$100K less than the CEOs.
  • The gender pay gap begins to develop at the $250K base salary level and above, due to fewer women being represented in C-suite positions.
  • Long-term incentives were an important motivating factor to most executives, with 60.5% stating that they believe long-term incentives have motivated them to stay at their current company longer, until these incentives mature.

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.”  

The report also includes information regarding cash bonuses, employment contracts, incentives and perquisites.

 Download the Report

The Ultimate Executive Career Guide: Compensation Negotiation

As a senior-level executive, you can use this guide to:

- Figure out your compensation value
- Navigate compensation questions during interviews
- Strategize how you counter and accept employment offers
- Negotiate a pay raise from your current employer
- And more!

Download Now!

About the author

AESC's picture

About the Association of Executive Search and Leadership Consultants

The Association of Executive Search and Leadership Consultants (AESC) is the voice of excellence for the executive search and leadership consulting profession worldwide. Its rigorous Code of Professional Practice guides members in nearly 1,300 offices in 74 countries and beyond to serve as strategic advisors on behalf of their clients. In turn, AESC members are best positioned to provide companies with a competitive advantage—the ability to find, attract and develop the best talent in the world and ensure that executives are successfully integrated.

Other posts by this author

Share your thoughts

Stay Connected