Anyone else simultaneously observing higher executive salaries along with a rise in more non-compete agreements?
According to a recent ExecuNet survey of 1,098 business leaders, executive compensation increased 5.7% during the last year, and it is expected to grow an additional 6.2% during the next 12 months.
The business and recruiting network says annual compensation of C-level executives averaged $206,000, with salaries varying significantly according to function. For example, the finance industry averages a $236,000 annual salary for C-level execs, while sales executives average $204,000.
The in-demand IT folks are averaging about $201,000, slightly better than marketing pros at $186,000 or HR executives at $185,000.
Mark Anderson, president of ExecuNet, says this increase “speaks volumes about the demand for top talent.â€
In a simultaneous ExecuNet survey of 718 search firm and corporate recruiters, the use of non-compete agreements has risen 35% since last year; performance reviews within the first six months have risen 27%; and guaranteed severance has risen 19%.
“Non-compete agreements are becoming a staple in compensation packages, as companies look to shield their talent from competitors and reduce the costs of executive turnover,†says Anderson.
Meanwhile, stock options and guaranteed severance packages underscore “the commitment companies are willing to make in order to remain competitive in the market,†adds Anderson.