Quick Survey Results: Executive Titling and...

This survey explores how and when companies classify an employee as an executive. Additionally, the survey examined member policies on employees serving on outside company boards.

See full results and analysis here.

Survey findings include:

Executive Titling

• Executive Population. Nearly 60% of Subscribers reported that more than 75 employees are officially classified as an executive within the company.
  
  
  • Executives represent less than 1% of the total employee population for just over three-quarters of Subscribers. Nearly the full remainder of the respondents indicated that the executive population is between 1% and 5% of total population.
    
    
• Classifying Executives. Almost two-thirds (62%) of respondents indicated that an executive must carry a specific job title such as Vice President and higher.
  
  
  • Almost a quarter (23%) require a specific reporting relationship such as reporting to the CEO. Comments indicated that reporting to an executive who reports directly to the CEO was also common for executives.
    
    
  • The same percentage (23%) of respondents indicated other requirements. Comments typically focused on the executive being tied to a specific grade or band. Eligibility to receive equity compensation also was a common requirement.
    
    
  • If a new job is added, several factors were highlighted in deciding if the job was at an executive level, including:
    
    
    • Duties or title (76%)
    • Reporting relationship (58%)
    • Benchmark pay level (44%)
      
      
  • Benchmarking job classifications was most likely to occur either annually (77%)or on an as-needed basis (17%). The comments indicated that the official schedule was annually but could be completed on an as-needed basis.
    
    
    • Over a third of respondents (38%) indicated that the compensation consultant did participate in benchmark job reviews, but nearly as many(32%) indicated the consultant leads the review session with management.
      
      

External Board Service Policies

• More than a third (37%) of respondents stated that they have a written policy covering the permissibility of external company board service.
  
  
  • Of the 58% that responded they do not have a written policy, most indicated there is structure in place for approval, typically requiring approval from management(for non-executives), the CEO, and/or the Chief Legal Officer (for senior executives).
    
    
  • Comments indicated a wide range of policies – from a blanket ban to encouraging it as a form of professional development.
    
    
• The most common level of employee with permission to serve on outside boards was C-Suite or Section 16 officers (44%).
  
  
  • The next most common answers were all employees (30%) and direct reports to the C-Suite (24%).
    
    
• Many of the comments highlighted policies to encourage employees to serve on the boards of non-profits or organizations within their communities.
  
  

Thank you to all Center members who took the time to respond to this survey!