CEO Survey: Expect Salary Increases To Stall In 2023
For the last few years, wage growth has been on a tear, with average pay in the U.S. up 8.9 percent in 2021 alone—the fastest growth since the early-80s, according to the Social Security Administration.
But now, as the economy slows, that trend is likely to end—fast—especially among executives and middle managers, according to our latest survey of American CEOs.
A recent poll of 333 CEOs in the U.S., conducted January 10-12 by Chief Executive, finds pay increases among almost every class of worker are likely to slow dramatically in 2023, an abrupt U-turn from recent trends. Compared to 2022, smaller proportions of workers in all seniority levels are projected to see salary increases of 5 percent or more, with companies instead opting to increase salaries at more modest rates, if at all.
According to our research, some 52 percent of middle managers saw a salary increase of at least 5 percent in 2022. That proportion is expected to drop to just 26 percent this year, according to CEOs we surveyed.
Only 20 percent of other senior executives are projected to see a 5 percent or more raise to their salary in 2023, down sharply from the 34 percent who got a raise of that size last year. For front-line and back-office employees, 57 percent saw raises of 5 percent or more in 2022. Just 32 percent can expect a similar gain this year.
This month’s survey is part of ongoing compensation research by Chief Executive Group, which includes our annual CEO and Senior Executive Compensation report, the largest survey of its kind conduced in the United States. It includes pay information from more than 1,800 U.S. companies. Learn more about our compensation benchmarking research >
According to our surveys, two-thirds of senior executives saw a salary increase in 2022, and the proportion for middle managers and front-line workers is even higher, at 88 and 93 percent, respectively. CEOs were the least likely to see a raise in 2022, at only 42%.
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
