CFOs/Comptrollers Among Highest Paid Corporate Leaders
With average executive tenure falling to a new low of 3.2 years, a recent survey conducted by ExecuNet, the executive business, career, and recruiting network, reveals companies are turning to higher salaries and non-compete agreements to first attract and then retain C-level executives in an increasingly competitive marketplace.
According to the survey of 1,098 business leaders, executive compensation increased 5.7% during the last year, and is expected to grow an additional 6.2% during the next twelve months. While the annual compensation of C-Suite executives averaged $206,000, salaries varied significantly according to function:
“Fueled by increasing globalization and retiring Baby Boomers, the current talent shortage has many companies competing aggressively to attract and retain proven corporate leaders,” says Mark Anderson, President of ExecuNet. “In light of increasing scrutiny and today’s economic headlines, rising executive compensation speaks volumes about the demand for top talent.”
A separate, simultaneous survey of 718 search firm and corporate recruiters reveals that companies are increasingly relying on non compete agreements, guaranteed severance, and stock options in an effort to attract and hold on to top talent.
“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. “The rise in stock options and guaranteed severance underscores the commitment companies are willing to make in order to remain competitive in the market.”
Founded in 1988, ExecuNet brings C-level executives together online and in face-to-face meetings to discuss business challenges, solutions and professional opportunities. A recognized authority in executive recruiting and human capital, ExecuNet also provides members access to confidential six-fig