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Executive Compensation

According to the BlueSteps Executive Compensation Survey (2013), many executives (over one-third) felt that they were not being adequately compensated for their work. If you have reached a crossroad in your career where you might be able to negotiate your salary, it is vital that you are equipped and prepared with the skills to ensure you end up with the compensation you deserve. BlueSteps has therefore compiled a list of do’s and don’ts for salary negotiation to help you on your way.

Recently, a colleague of mine who I will call “John” successfully negotiated a highly favorable executive relocation and compensation increase from his Fortune 100 technology and communication company who wanted him and his family to move to Singapore. In a global economy that continues to send mixed signals into the market where heightened expense pressures, elongated recruiting processes, and tighter access to jobs within corporations are juxtaposed with seemingly improved consumer spending and confidence, John secured everything he wanted to maximize his personal reward. I asked him to explain his strategy and I am pleased to share his top four recommendations as best practices.

Executive CompensationIn the workplace, everything is up for negotiation. However, your best chance for bargaining happens when you first get offered a position. Keep this fact in mind: The largest salary increases you’ll likely ever earn are when you go to work for a new employer. Employers expect you to negotiate the offer, not just your executive compensation, so don’t be shy. It’s up to you to ASK for what is fair. There are many executives who DO NOT take this opportunity to give themselves the biggest raise ever.
 

BlueSteps hosted the #ExecCareer Chat: Negotiating Executive Compensation, featuring Tom Fuller, from Epsen Fuller Group.
 
Some of the questions asked included:

Whether you are relocating to a new city, or just changing jobs seeking better executive compensation, the only time you are truly able to obtain a solid increase in compensation and benefits is when you are negotiating a job offer with a new company. As you know, once you become an employee, you must wait until the next annual salary review; and then you only get a small percentage increase. You cannot change any other terms of your original employment agreement after you have signed it. Get what you deserve now through compensation negotiations--protect your career and financial future.

One of the comments I hear most often from executives is the struggle to negotiate their salary when the offer is presented. This is especially true for executives who have been conducting an executive job search for some time and wish to return to the workforce as soon as possible. Some think being too demanding when negotiating executive compensation might jeopardize their job offer.
 
Let’s take a look at three mistakes you can avoid when negotiating your salary.
 

Earlier today, BlueSteps hosted the #ExecCareer Compensation TweetChat featuring our expert BlueSteps Executive Career Services (BECS) panelists. Our expert career panelists, Barbara Safani and Louise Kursmark, provided very informative and useful answers for all in attendance.
 
If you missed it, catch up on all the excellent advice that was given in the Storyfy transcript below. Topics covered included:

The AESC BlueSteps survey of 778 executives was conducted in September 2013 and included responses from CEOs, CFOs, Board Members, Senior VPs, VPs and other management worldwide, including 53 percent from the Americas, 35 percent from EMEA and 12 percent from Asia/Pacific.

“This BlueSteps report highlights the inconsistencies in perception about C-suite executives, in contrast to the high profile cases of robust corner office salaries,” said Peter Felix, President and CEO of AESC. “On the contrary, for most senior executives in our survey salary increases and bonuses have only modestly begun to rise after the financial crisis.”

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

When choosing your career path, it is often said that one must choose between job satisfaction and salary, as it is impossible to achieve both. In times of economic uncertainty, many people are choosing careers based on salary alone, however, Daniel H. Pink, author of Drive: The Surprising Truth About What Motivates Us, now warns that this decision can have adverse effects.