Explore insights into what organizations across all industries worldwide are planning for executive compensation this 2024.
Attraction and retention remain challenging for organizations worldwide
Organizations grapple with sourcing talent for major roles at every level
Salary budget increases continued in 2023
Because salary impacts an organization's ability to attract and retain talent, this pattern is expected to continue in 2024, but employers will be cautious about allocating their salary budget.
Employers (60% or more) in every industry worldwide have taken or are considering taking the following measures:
- Compensation review of specific employee populations
- Full compensation review for all employees
- Targeted increases for specific employee populations
- Hire people higher in relevant salary range
CFO/chief financial officer pay mix at median level
Percentage of annual incentives (actual and target) and LTI in CEO base salary
Percentage of annual incentives (actual and target) and LTIs in CFO base salary
Three percent increase in the number of unique organizations participating in WTW's 2023 executive surveys, and a 6% overall increase in data submissions
Trends expected to shape 2024 rewards decisions
01
Economic volatility and uncertainty could lead to lower investment levels and economic growth, which will force organizations to review their workforces and be more cautious about increased salaries (among many other things).
02
Increased disclosure requirements.
03
Climate and environmental, social and governance (ESG) measures to increase in prevalence with an increased focus on quantitative key performance indicators and LTI plans.
04
Focus on innovative incentives (e.g., interesting things in normal companies, normal incentives in interesting companies).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
