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€
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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%.
â€œNon-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,â€ 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,â€ adds Anderson.