The total pay of executive presidents in Portugal is on average 10.9 times higher than the average pay of the rest of the organization’s employees they lead, according to a Mercer study released this Thursday.
“In Portugal, the total remuneration of a CEO [presidente executivo] is on average 1.5 times higher than the remuneration of the other executive members and 10.9 times higher than the average remuneration of the other employees of the organization”Mercer announced in a statement.
This is one of the conclusions of the study on Executive Remuneration, which surveyed 40 organizations operating in Portugal, including 13 listed on the PSI stock exchange, and analyzed seven different functions of executive members.
The data collected also showed that the composition of the executive committees of the surveyed organizations is predominantly male (75%), “because for executive presidency positions, the under-represented gender discrepancy is even greater, with 90% of the companies are led by men”.
According to the study, 67% of the executive president’s compensation corresponds to base salary, 26% to short-term incentives and 7% to long-term incentives.
In turn, 59% of executive members’ remuneration corresponds to their base salary, 24% to short-term incentives, 10% to long-term incentives and 7% to guaranteed grants.
In terms of projections for 2023, the study points out that “wage growth in developed markets will be higher than recent values, but much lower than current inflation expectations”.
“Given the likelihood of a real decline in earnings and the more severe impact of inflation on lower-income employees, this new framework will require the Remuneration Committees to exercise caution in setting raises for executives”Mercer concluded.
Real performance bonus payments for 2023 “are likely to be lower than in previous years in most sectors due to the economic impact of inflation and the war in Ukraine” and “long-term incentive values may remain somewhat low for companies meeting 2022 financial targets in the pre-pandemic beginning of 2020, with 2019 as the base year”.
Source: DN
