2022 Executive Reward Report: Summary of findings

We have recently released our Executive Reward Report for 2022. This is our thirteenth annual survey and includes remuneration data from 143 predominantly private sector companies on more than 2,000 CEO and executive roles.

Roles covered include four CEO/Subsidiary CEO positions, 34 executive direct report roles (e.g. CFO, GM IT) and 36 third tier positions.

In summary:

• The fixed annual remuneration (FAR) median movement for same incumbents (employees in the same role, in the same company as in the 2021 survey) was 3.1%, a significant increase compared to our 2021 levels of 0.6%.
• Twelve percent (12%) of same incumbents did not receive an increase to fixed pay.
• Sixty-six percent (66%) of executives (CEOs, executives and third tier roles) received an STI payment this year (this compares to 59% in 2021).
• The median STI payment received across the database was $64,800, an increase compared to last year’s median of $52,500.
• The median same incumbent total remuneration movement has increased year-on-year, with a median movement of 7.3%, compared to 1.5% in our 2021 report.
• Year-on-year, the aggregated total of negative movement and no change to total remuneration levels has dropped to a total of 23%, less than half of the 2021 reported levels (47%).
• The forecast fixed pay median figures for the 12 months to 31 March 2023 have risen by 2.0% year-on-year for CEOs, up to 4.0%. The median forecast fixed pay increases were 4.3% and 4.5% for executives and other staff respectively.
• Share rights plans and variations thereof were the most prevalent LTI structure (85%), with relative total shareholder return (rTSR) utilised in isolation (or together with another metric) remaining the most common performance measurement approach.

Please contact one of our team for more information on the survey findings and trends in CEO and executive reward.

The full survey report is only available for purchase by participating companies. You can submit data at any point in the year to purchase the current survey and/or participate in the next survey.