New cold spell on the remuneration of private sector executives

For the first time in 16 years, the median salary of executives is falling. After reaching 55,000 euros gross per year, it fell to 54.

000 euros over the last twelve months, which means that half of the executives receive less than this sum and the other more. So why this decrease? In a constrained and uncertain economic context, companies have been parsimonious in salary increases.

The share of augmented executives has fallen further. Only 46% of them say they have benefited from an increase in their remuneration, compared to 53% who benefited from it the previous year and even 60% 2 years ago. Those in their thirties and forties are the most affected by this slowdown, indicates Apec, the Association for Executive Employment.

Furthermore, the increases granted were more modest. While fixed remuneration has remained stable, employers have adjusted bonuses, bonuses and other performance-related rewards. With differences depending on functions and sectors of activity.

Also read What is the name of executive status? The feeling of losing purchasing power The median remuneration of private sector executives has increased less quickly than inflation since 2007, with a clear drop over the past 4 years, underlines Hélène Garner, director of studies at Apec. Over the entire period, executives lost a little more than 11% of purchasing power.

With differences, again, depending on the age, the size of the company and the sector of activity. The fact remains that the feeling of a deterioration in purchasing power is increasing among the managerial population, 60% say they now feel it, that's 5 points more in one year. To change the situation, changing positions within the same company remains the most favorable situation.

68% of executives who opted for internal mobility saw their compensation increase this year, compared to 54% for those who changed companies. Also read How do companies go about recruiting executives? Salary inequalities between women and men Salary inequalities between women and men continue, the situation is not improving.

There are still fewer women than men who receive a variable share and, when they do, the average amount is lower. All profiles combined, the median remuneration of male executives remains 15% higher than that of women. Finally, for comparable positions and profiles, the pay gap remains at 6.8% this year, like last year.

Machine-translated from French