As the economy continues to show slight signs of a recovery, executives are keeping a close eye on how a rebound will affect all of its organization's business operations. They are equally curious about how it will impact their company's bottom line as well as their own in the form of compensation.
A new report from Deloitte, "
Under Pressure: Compensation and Retention in a Turbulent Economy"
1, sheds some light on how companies viewed compensation and reward programs in fiscal year 2009 compared to fiscal year 2008 as they gauge whether their organizations are par for an overall economic rebound. The report also provides a glimpse of what these companies expect in relation to compensation in fiscal year 2010.
Fortunately, some survey respondents project better news for the new year. Thirty percent of respondents said they expect to offer employees an increase of 3 to 5 percent in their standard base salary.
Executives could receive similar increases, said 28 percent of survey participants. Fifty-four percent are calling for smaller employee salary increases in 2010; 44 percent project minor increases for executives.
At the same time, 25 percent said executives should expect no salary increase, while 16 percent said employees wouldn't receive pay raises. Only 2 percent noted that executives would see their salaries reduced. None projected reductions for employees.
According to ExecuNet's 2009 Executive Job Market Intelligence Report, there is certainly a trend toward executives receiving small pay raises or even reductions in pay.
On average, notes EJMIR, executives received 1.7 percent less in salary and bonus in 2008 than the previous year. They received an average of 5.7 percent more in 2007 than in 2006.
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http://www.deloitte.com/assets/Dcom-UnitedStates/Local%20Assets/Documents/us_consulting_UnderPressureCompRetentionSurvey_121609.pdf www.execunet.com 
