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
| Executive | |
|---|---|
| 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.
Download
| Title | File Type | File Size |
|---|---|---|
| 2023 Pay trends in Executive Compensation | .1 MB |
