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Marketing Executive Salaries Jump

Salaries on upswing for Marketing Executives

Marketing Executives’ salaries jumped by more than 5 percent in 2004, according to a national survey released in late 2005.

While salaries for the lower-ends of the marketing industry were stagnant, those Marketing Executives in the top-salary levels showed the most growth.

“Organizations saw compensation as a way of keeping the talent needed in strategic positions.” according to the report from Mercer Human Resource Consulting, “Benchmark Database: Corporate Marketing and Communications Survey”.

For example, for positions described as “Top Marketing Executive” which would include “Executive Vice President of Marketing” and “Chief Marketing Officer”, median total cash compensation, which includes base pay and annual bonus (but not stock options, the value of benefits or other non-cash compensation) was $227,300, up 5.3 percent from 2003 figures.

“Marketing in general has been hit relatively hard by the downturn in the economy in the last two to three years.” said Susan Haberman, a Mercer principal and senior consultant. “Companies are acquiring new talent when they can, but with the layoffs ... you can get them less expensively. (But) there's no consensus.”

The increase in compensation for top marketing executives is related to several factors, although the main reason is simply that “it was a good time for employers to consider acquiring some key talent that they may not have considered in the past.” Haberman said.

Senior executives also often take advantage of business cycles during which they are in demand to contemplate moving to jobs they may not have considered before. Agency employees, for example, are traditionally paid more than corporate executives.

Haberman notes that, historically, agency veterans have been willing to move into the corporate world during similar economic periods, which has had the effect of bumping up cash compensation for those positions.

Top marketing executives in various industries earned a wide range of cash compensation packages, from $205,200 for manufacturers of durable goods to $300,000 for retail/wholesale executives, according to the survey.

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