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2023 Pay trends in Executive Compensation

December 2022

Explore what our Executive Compensation salary survey data tells us about 2023.
Compensation Strategy & Design|Executive Compensation
Beyond Data
Infographic of 2023 Pay trends in Executive Compensation

Executive attrition not a serious problem for most organizations

Voluntary attrition rate
China 4%
Mexico 9%
United Kingdom 5%
United States 6%

Percent of organizations adding headcount at each level

China 9%
Mexico 12%
United Kingdom 10%
United States 11%

Management and Professional
China 35%
Mexico 27%
United Kingdom 14%
United States 40%

Production and Manual Labor
China 23%
Mexico 35%
United Kingdom 25%
United States 40%

2022 saw the highest salary budget increases in nearly 20 years

Given the fundamental role salary plays in an organization’s ability to attract and retain talent, employers plan to carry this adjustment through to 2023 – yet remain cautious about how and when they allocate the overall budget.

2022 Overall Actual Salary Increases (Median) 2023 Overall Forecasted Salary Increases (Median)
China 6% 6%
Mexico 6% 6%
United Kingdom 3% 5%
United States 4% 4%

Additionally, organizations leveraged bonus payouts in 2022 and, again, are on track to the same in 2023

25%: Average 2022 projected variable payout for executives.

China 26%
Mexico 33%
United Kingdom 30%
United States 37%

Organizations around the world have taken or are considering taking the same three actions

Compensation review of specific employee populations 51%
Targeted increases for specific employee populations 45%
One-off cash payments (e.g., retention bonus, lump-sum payment or allowance) 44%

Top 3 highest-paid Corporate Executive positions across all industries and all organization sizes

China Mexico United Kingdom United States
Top Applications Development Executive CFO/Top Financial Officer CFO/Top Financial Officer Chief Operating Officer
Top Human Resources Executive Top Human Resources Executive Chief Operating Officer CFO/Top Financial Officer
Top Strategic Planning and Development Executive Top Legal Executive Chief Risk Officer Top Legal Executive

Median pay mix for CFO/Top Financial Officer across base salary, bonus and long-term incentives

China Mexico United Kingdom United States
Base (%) 60% 60% 36% 33%
Bonus (%) 33% 35% 31% 22%
LTI (%) 7% 5% 33% 45%

Annual incentives (actual and target) and long-term incentives as a percentage of base salary for CFO/Top Financial Officer

China Mexico United Kingdom United States
Actual Bonus % of Base Salary 50% 45% 86% 86%
Target Bonus % of Base Salary 35% 40% 80% 75%
LTI % of Base Salary 28% 35% 131% 231%

What will drive 2023 rewards decisions

As labor markets tighten and inflation rises, compared to other groups of employees, executive-level employees have been less of a concern to most companies with only about 20% of organizations experiencing problems attracting or retaining Executives, compared to close to 70% for talent with digital skills and product/manual labor roles.

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2023 Pay trends in Executive Compensation PDF .1 MB
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