Long-Term Incentives Remain Key Motivational Tool

October 16, 2012 – Releasing the results of their 2012 Executive Compensation Survey, BlueSteps, a career management service of the Association of Executive Search Consultants (AESC), reports that even though turnover in the C-suite is increasingly rapid, 65 percent of global executives, from a survey of 731 executives worldwide, believe long-term incentives do in fact motivate them to higher levels of performance. Many executives point to an increasing lack of long-term incentives as a direct contributing factor to the high turnover rate in senior-level management positions. Just under one-third (31.3 percent) of global executives receive stock options as part of a long-term incentives package, while 40 percent of global executives receive no long-term incentives as part of their employment package. Considering executive mobility in the scope of compensation, more than half of global executives surveyed (54 percent) would be willing to make a career move for a better role/increased responsibility even if it entailed a pay cut. The survey also revealed that while there has been much media scrutiny of skyrocketing CEO salaries at large, public companies, when looking at executive pay on a global scale the numbers present a very different picture. Based on base salaries of 186 executives in C-suite positions at public, private, and non-profit organizations worldwide, the annual global average C-suite base salary was $278,800. When factoring in bonuses, the largest percentage of global C-suite executives earn annual bonuses less than $50K USD.

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