Hewitt Expects 3.8% Increases; Execs Reported 7.6% to ExecuNet
ExecuNet’s ongoing analysis of executive compensation issues found that those who were directors and above in organizations expected to receive 7.6 percent increases in 2007, and those at the highest level CEO and President awaited 10.2 percent raises.
Human resources consultants Hewitt Associates’ survey of 1,007 large organizations indicates base salary raises will be nearly flat in 2008 3.8 percent compared to 3.7 percent in 2007 and 3.6 percent in 2006.
The jackpot for many employees, according to Hewitt, will be in variable pay plans, which can push salaries beyond the expected 3.8 percent increase. Sixty-three percent of the surveyed companies offer special recognition awards to employees; 59 percent have a business incentive program; 44 percent grant individual performance awards; 44 percent offer non-executive equity awards; and 38 percent give retention bonuses to employees.
Executives who change roles expect to fare the best in compensation increases 17.5 percent and even those who are not in active job search expect their next opportunity to be worth 21 percent more than their current position.
