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Some CEOs in the motor sector are “doubling their earnings” when they move company with the re-emergence of sign on bonuses.
That’s a key finding of top end recruitment firm Ennis & Co in its 2023 Salary Insights Report which found that a talent shortage and the growing need for new skills has fuelled “spiralling wage” inflation.
It said on target earnings, including salary, bonus and benefits for senior bosses across all roles have risen above inflation in the past year, based on achieving performance related KPIs for the organisation, and are not guaranteed.
There has also been a re-emergence of sign-on bonuses, often to compensate candidates for bonuses or stock they would otherwise lose by switching companies
This, it said, reflects a tight talent market where candidates need to be prised away from their existing role.
Lynda Ennis, Co-Founder and CEO of Ennis & Co Group, said: “The incredible pace of change in the automotive and mobility industry means businesses face a constant challenge when it comes to remuneration.
“The combination of a global talent shortage and the growing need for new skills to drive the transformation taking place in the industry has fuelled spiralling wage inflation.”
One of the key trends highlighted in the data is that although base salaries remain high, greater weight is being placed on KPI-related bonuses.