BlueSteps Executive Compensation Report - October 2013
The average C-suite base salary among global executives surveyed decreased 8.8 percent year-over year from 2012 to 2013, while director level (non-board) middle management salaries have increased 4.6 percent during the same period.
Base Salaries –
The Numbers The 2013 BlueSteps Executive Compensation Report shows that the largest percentage (26.5%) of global executives (director-level) and above earn an annual base salary between $151K and 200K USD. Only 2.4% of global executives earn an annual base salary above $500K USD.
Total Compensation - Increases or Decreases?
In the last fiscal year, almost half (44%) of executives reported an increase in total compensation while 40.1% saw no change in their total compensation. Only 16% of global executives reported a decrease in their total compensation in the last fiscal year. Of those executives who reported an increase in total compensation in the last fiscal year, the greatest percentage (41.8%) reported an increase in the 1-5% range, followed by 26.6% of executives who experienced an increase of 6-10%. Only 9.9% of executives reported increases above 20%.
2013 Executive Compensation Trends
While almost half of executives did experience an increase in total compensation in the last fiscal year, many executives reported concerns about salaries not fairly commensurating with performance. One executive reported, “Markets have changed since 2008 and compensation is being deliberately managed downwards. Companies are moving towards leaner staffing, increasing the work load on executives without compensating for it.”
Long-term Incentives - Are They Effective?
When asked if they are motivated to higher levels of performance by long-term incentives, 66.8% of global executives agreed that they are in fact motivated to higher levels of performance by long-term incentives, while one-third (32.1%) reported that they are not motivated by long-term incentives.
Cash Bonuses vs. Shares?
When asked if cash bonuses or shares are more attractive, the overwhelming majority of global executives (88.1%) reported a preference for cash bonuses compared to the only 11.9% of executives who prefer shares.
How Much Are Executives Saving?
The largest percentage (39.5%) of global executives reported saving 11-20% of their annual income, followed by 21.9% who reported saving 21-30% and 20.1% who save less than 10% each year. Only 18.4% of executives reported saving more than 30% of their annual compensation.