Purchasing power is also a major concern for executives. As for all the French. Whereas inflation, in France, soars , employers are forced to react. Last May, 41% of executives had already received a salary increase, according to the 2022 barometer of executive compensation from the Association for Executive Employment (Apec), published on Thursday.
A figure not very far from that observed for the whole of 2021 (46%) and which suggests a “historic” year: “60% of executives could be increased in 2022”, estimates its director general, Gilles Gateau.
2% increase in 2021
This will not necessarily be enough to cheer them up. Faced with higher inflation and already longer than expected, “the feeling of significant loss of purchasing power should logically progress”, according to Apec. Not even to mention the resentment of those who did not have a salary increase. Dissatisfaction is also rising among those under 35 – in May, it concerned 29% of them, a figure up 5 points over one year. They consider this to be the “second most important reason for dissatisfaction behind career prospects in the company”. The 35-54 year olds have also risen (27%, + 4 points)
Managers are not affected by the mandatory annual negotiations (NAO) which, in times of high inflation, take into account the rise in prices. They are subject to individual increase measures. After three years of stagnation, their median compensation (including the fixed and variable part of their salary) reached 51,000 euros last year, an increase of 2% over one year.
After a year 2020 under the sign of the Covid, the year 2021 allowed a first catch-up. Thus, augmented managers were almost as numerous as before the pandemic (46% compared to 48% in 2019).
As always, external mobility has paid off. Two out of three executives who changed companies without going through unemployment saw their pay rise. But employers were not left out. It front of difficulties in recruiting , they rewarded internal mobility with wage increases. Nearly two out of three executives (63%) who changed jobs internally saw their compensation increase, while less than one out of two executives who remained in the same position received an increase.
7% pay gap between men and women
The picture painted by Apec highlights two other trends. Those under 30, who had been very hard hit by the health crisis, were generally better treated: 63% of them obtained a salary increase in 2021. And to retain them in the company, increases were attributed to most of those who moved (83%).
With regard to equality between men and women, the study shows, on the other hand, the path that remains to be traveled, even among executives. Despite the political discourse, “for an equivalent profile and position, a salary gap of 7% remains”, indicates Apec. And age doesn’t change anything. Female executives under 30 are paid 6% less than young male executives.